If you're like most other people, you've been glued to your computer screen for the last few days watching the presentations from a startup accelerator, Y Combinator's 2016 Demo Day.
In case you missed it, here's a quick recap: out of the 84 startups that pitched, 29% were funded (a total of $1.8 billion) and 11% were acquired. It was definitely an exciting few days.
One startup, in particular, caught everyone's eye – Airbnb. They had a very polished pitch deck, and I was curious to see how they structured it. So, we decided to do a little digging and build their template in Decktopus.
Remember how we used to use Uber to describe how our startup idea was great? “It’s the Uber for the … industry” was on every startup pitcher’s mouth. Well, with Uber on the brink of bankruptcy another company is on its way to replace it as the epitome of what a startup means: AirBNB. Currently making a profit of 2.6 billion dollars, functioning with over 6300 employees, and privately valued at 31 billion dollars, AirBNB is no longer just “the Uber for the hotel industry”. It has quickly become the it-girl of the startup world.
But, like all startups, the Airbnb founders had to go through the pitching phase. To show you how they made their pitch, we recreated their pitch deck on Decktopus. You can easily access the Airbnb Pitch template here. Let’s check out what’s inside:
1. An Introduction Slide Template
This slide included their startup name, logo, their one-liner “Book rooms with locals, rather than hotels” and a representative photo.
2. The Problem Statement Layout
They outlined the 3 key points for a customer looking to book a room.
- The price: This is the number 1 concern for customer booking travel online
- Far from the city culture: Hotel keeps you away from the city and its culture
- No Easy way exists: Booking a room with a local or becoming a host is hard
3. The Solution / Business Idea
Where does Airbnb come in? What is their unique and core value propositions? Well, they created a web platform where users can rent out their spaces. In fact, with this product you can:
- Save money when traveling
- Make money while hosting
- Share culture with a local connection to the city
4. Market Validation
The current number of total users on similar platforms like Craigslist and couchsurfing.com. It is good to highlight the opportunity in the market through the competition. This market validation slide could have also outlined the current profit, private valuation, and so on.
5. Market Size Slide
This slide outlines how AirBNB can and has filled the gap. Showing how large the available market invites more investor attention and increases the likelihood of better valuation.
6. How It Works Experience Slide
A step by step visual explanation of the product helps walk the audience through your process. This is especially useful for startups offering a complicated product.
- Search by location
- Review Listing
- Book it
7. Business Plan And Model For Investors
One might ask, how is AirBNB making the money? In this case, they are using the commission model which allows for a lot of profit. The expected revenue is key to highlight here.
8. Market Slide With Graphics
The pitch deck goes on to highlight the unique ideas they will bring to the table with “Target Events Monthly”, “Partnerships”, “Craigslist Dual Posting Feature”.
Listing out the competitors help because then you can point to the loopholes in the market and how Airbnb has a competitive advantage.
10. Team Slide
How will your team members contribute to the business? Why is it these people out of everyone that will fill this market gap and make it happen?
11. Testimonials and Press Reference Power
These slides are their way of saying, “Hey look, people are already using my product and loving it!”
12. Financial Request Point
What they want out of this presentation. What kind of investment opportunity are they looking for?
Why is this pitch deck leads to a successful round?
Simple: it is simple(!). It is extremely clear, easy to follow, succinct, and visibly engaging. There is not too much content on the slides and the slides are colored with visuals. It is easy to keep the audience engaged in the material. It is not a surprise that the Airbnb team was successful with this pitch deck.
Click on image to take the quiz
But, there is another reason this pitch deck looks great! It was created on Decktopus. Go check out Decktopus now and create wonders for your next startup pitch!
Let’s look into this pitch deck more.
Airbnb Pitch Deck: Back Story of Design
Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. Like many other tech unicorns, it comes from a brilliant idea and limited resources. This story doesn't start in a garage, but on an inflatable mattress. They turned their SF apartment into a bed and breakfast and soon had 3 paying guests.
They had market validation credibility! They launched airbedandbreakfast.com in August 2008 and began attracting hosts and travelers to their service, but times were tough. To finance their company, the founders came up with an ingenious solution: The story of how they founded the company during the 2008 campaign with the sale of cereal boxes by Obama and McCain is now part of the company's legend and is well worth reading. Sequoia-led seed round in 2009 and $ 7.2M Series-A, led by Sequoia and Greylock in 2010, began Airbnb's amazing growth journey. By 2012 they had booked more than 10,000,000 overnight stays, the rest, as they say, is history.
Airbnb was valued at $ 31 billion in early 2020, but then the impact of COVID and the travel and tourism industries were hardest hit. Airbnb is going through tough times, laying off 25% of its workforce and suffering from a drop in sales like never before. A date will soon be set with the 2020 IPO plan. As Airbnb prepares for its listing, let's review and tear down the launch pad that made it raise $ 600,000 in 2009.
Airbnb Pitch Deck Slides Details
- Airbnb, founded in 2009
- Corporate phase: early phase, development phase
- Main investors: Sequoia
- Amount raised: USD 600,000
- Total amount before the IPO: USD 5.4 billion
- Title slide: Whatever you think about the overall design of the platform, we should let you know from the start: it is consistent and conveyed at all times a feeling of friendliness and security. It's a bit cheesy/childish but feels like it's a bit of a thought which is a bonus. The title slide confirms 2 of the 3 requirements: Logo and brand. The logo and brand names are eye-catching and easy to identify.
- Label / slogan: The tagline is a bit clunky, it doesn't identify one of Airbnb's most important value propositions, which is that anyone can make money from it. like "save money traveling, make money hosting" (I'm not a copywriter) would have gotten the message across better.
- Purpose of the platform: I would have added "Seed Round Investor Deck" somewhere at the bottom of the problem. The second slide deals with the problem and focuses directly on the crux of the matter. Given that Airbnb wanted to revolutionize an industry that everyone knows, I think it's a good step to take this path: Investors who read the platform will immediately and personally identify with the topics described here. and a common mission. However, I'm not sure about the main focus. "Price> Hotels> There is no easy way to go" makes little sense if you look at the words in bold as a group. "Price> Offline> Not Easy" seems more logical.
One last point, an important ASP. If you make statements like "there is no easy going", be prepared to defend your claim. This type of blue ocean claims that the only one who gets it right can bite back if you aren't prepared and don't know your competition. This is a great slide for two reasons: first, it uses very few words (29 total), it implies that the solution is easy to understand, which in turn means that the value proposition is easy to understand for both the investor and the customer. Second, the benefits are clear and monetary. With Airbnb, you save money, make money and share the culture.
Let's face it, the latter is more for branding and marketing purposes here. By stating in bold that it helps users save and make money, it positions itself as a platform that adds value to both buyer and seller. The three pillars of the solution address the three problems described above:
- Price → save money offline → Culture of Sharing No Easy Way to Host → Make Money Market Validation
The next slides on Market Size and Potential Revenue will make bold claims with big numbers. it will automatically prove that the numbers are real and based on verifiable data. By simply highlighting two characters in large print, this slide easily conveys a strong message: The market exists and it is huge. People are already participating in transactions.
What Should Be in A Good Pitch Deck From Investor Perspective?
When raising money for your business, a great presentation is an important part of your fundraising toolkit. A great presentation will get potential investors excited about your idea and engage them in a conversation about your business which, with a bit of luck, will lead to investments
Here is a formula of what to include in your presentation. I am building on the knowledge I have gained from hearing hundreds, if not thousands, of elevator speeches and presentations. I've seen all kinds of presentations and presentation styles and found that there is a simple formula that just works. I've also built my own and introduced it to Silicon Valley's leading venture capital firms over the years and learned a lot about what works and what doesn't. What is a presentation platform?
A presentation, also known as a slide show or startup platform, is a presentation that provides a brief but informative overview of your company. Your business plan, the products and services you offer, high-level financial projections, and your funding needs. Your presentation should work well as a visual document but is primarily used as a tool to tell your company's story.
What is a pitch deck for? This may sound counter-intuitive, but the goal of your pitch deck is not to raise money. What? I know it doesn't sound good, but the real goal of your presentation is to get to the next meeting. Remember, your presentation and presentation are likely one of the first things an investor will see to learn more about your business. And because investments are rarely made after a single conversation, your goal is to generate interest in your business.
You want investors to ask more for your speech than just show you the door. So while a strong presentation platform is critical to fundraising efforts, the main goal is to move on to the next step - another meeting and a request for more information.
What to include in your presentation: While every company is different, I've found that the following format works for most companies and is more likely to attract potential investors.
Vision and Value Proposition: This is a brief overview of your company and the value it brings to your customers. Keep it short and simple. A great way to think about this slide is to: Think of it as a short tweet - describe your business in 140 characters or less in a way that your parents will understand. It's common for technology companies to compare their value proposition to another well-known company. For example, you see a lot of publications that start with things like, "We are Uber for pets" "We are Netflix for video games" This can work, but be sure that your comparison makes sense and that you're not just using a high profile company like Uber to pinpoint growth potential.
Your business model should be similar to the company you are referring to. You don't solve any problem in the world, your company will go a long way uphill. Use this slide to talk about the problem you are solving and who is having the problem. You can talk about current solutions in the market. , but don't spend too much time on the competitive landscape on this slide; You can do this later. Ideally, try to tell a relatable story as you define the problem. As real a problem as possible, your investors will better understand your business and goals.
Target Market and Opportunity: Use this slide to explain who your ideal client is and how many of them there are. How big is the market overall and how do you position your company in the market? When they find the data, investors want to know how many people or companies are currently spending in the market to get an idea of the overall size of the market.
Here you tell the story of the scope and extent of the problem you are solving. If it makes sense for your business, consider dividing your market into segments that you target with different types of marketing and possibly different types of marketing, but be careful with this slide. It is tempting to define your market as large as possible. Instead, investors want to see that you have a very specific and accessible market. the more realistic your speech will be.
The Solution: Finally, you can immerse yourself in the description of your product or service. Describe how customers are using your product and how you are addressing the issues outlined in slide two.
Here is another way to approach the pitch deck redesign and creation process;
What A Solid Company Pitch Deck Template Would Look Like
What exactly should aspiring entrepreneurs include in a presentation that leads to a successful fundraising round?
Throwing out a dozen slides with a few bullets in exchange for millions of dollars in startup capital might not seem that difficult. Thousands of startups compete for capital and an opportunity to create investors and showcase that they are the best option for your business. Getting this asset right is important.
There are two main factors to overcoming the optimal pitch deck refresh challenge and creating a document that deserves attention and significant investment. The first is the design. That's the right number of slides and styles. The second and more confusing and important question is what to include in your platform. Not that long ago I covered the Launchpad template created by Silicon Valley legend Peter Thiel, which highlights the most critical slides.
On top of that, I also commented on a pitch deck from an Uber competitor that has raised over $ 400 million.
- Your business information. This should include your logo and startup name, as well as your contact information so investors can follow up and schedule a meeting to get you a check. Do not hide this information. The email should be large and easy to find.
- The concept: What is it? Show viewers what is going on ahead of time so they know they are interested. Usually, this could be included on the cover sheet with a nice high-resolution photo. and a strong catchphrase.
- The problem: What problem is your startup or service solving? During the presentation you need to gather the what, why, why now (urgency), and why you have the team to achieve it.
- The Solution: How does your startup solve this problem? How is your company part of the solution?
- Market Size: Any presentation should consider the size of the market and the potential size of the opportunity. These are indispensable metrics. Think in billions and always add credible sources. This slide is really important as it determines the potential outcome for investors who show interest.
- The competition: All companies have competition. If you don't know who they are, you probably didn't have a proper investigation.
- Competitive Advantages: What are the competitive advantages of your startup in the market and over your competition? ? What is unique? What can you do better that is important for consumers or profitability?
- The product What are the features and benefits? This is a great place to use pictures to show your product or service in action. Screenshots are clever when you have a product or app online.
- Traction: You don't have to be profitable or have lots of customers paying to raise capital. However, what every potential investor wants to know is what kind of traction you have. How is the feedback on user engagement? What is your growth like?
- Business Model: What is the basic business model for attracting customers and generating income? Don't get too bogged down here, as strategies and tactics will change. However, investors want to see that you've thought about it and have something useful.
- Basic Financial Forecasting: The financial slide is the one that investors will be spending most of their time on. It is one of the three most important slides of your speech. Key points include your burn rate, break-even point, and how many users you need to make a profit
- Other Investors: Who are your other current and former investors? You are very encouraged by its success in raising funds from angel investors and even from friends and family. Show that someone else believes in you and has put their money on the line. It serves as social proof. In later rounds, having some well-known resumes in your deck can speed up funding and help negotiate better terms.
- Use of Funds What will you do with the money? Spend it on rental or purchase customers and drive out the competition.
- Who is involved? Remember, investors are investing in you, not the business or idea, or they would just buy it locally or create it from scratch. a home run with this valuable solution What industry and business experience do you have? If you're weak in this area, get a key employee or two who complete and strengthen the team. Put together a strong and respected advisory board that is sure to make this a success.
- Thank you very much.
Why Do Many Founders Refer To The Airbnb Pitch Deck Presentation?
Airbnb is a platform that enables people to advertise, find and rent accommodation. This company is one of the greatest startup success stories of our time. Despite an attractive business plan and fantastic traction at the beginning, the travel startup still had to found its company.
That 2009 Airbnb pitch deck presentation earned them $ 600,000 in seed capital. Airbnb's presentation platform has become a popular reference for entrepreneurs around the world. This presentation is an example of simplicity at its finest. To show how Beautiful.ai's presentation templates can help you with your presentation, we have given Airbnb's presentation platform a design update.
Don’t feel lost here! Check out our pitch deck template or Airbnb pitch deck for reference!
Some articles for inspiration:
Presentation Template Series 3: Service Proposal
Presentation Template Series 4: Progress Report
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