How to think about your business model as part of a VC pitch

Startups usually run at a deficit while designing and building the product. But companies are designed to make money, and over time, as unit economics and customer acquisition costs improve, you’ll probably tip into the blue. Maybe. Hopefully.

At the very least, that’s what your investors will be betting on. So that means your business model slide needs to paint a picture that shows where you’re at now and how the business can grow over time.

This was the example business model slide I used for my book “Pitch Perfect.” You can see the full template here. Image Credits: Haje Kamps

This was the example business model slide I used for my book “Pitch Perfect.” You can see the full template here. Image Credits: Haje Kamps

In theory, your “business model” could include every aspect of the business; the Business Model Canvas is one way to explore that, and you could easily spend an hour just talking about the whole end-to-end business model. For the purposes of a funding pitch, however, it’s likely you only need a few crucial elements:

Breaking those numbers down and presenting them the right way can greatly benefit how you tell your startup’s story to investors.

Source @TechCrunch

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