What is the purpose of the “ask slide” in a pitch deck?

Key Purposes of the Ask Slide

1. Clarify Funding Requirements:

   • Specific Amount: Clearly state the exact amount of funding you are seeking. Avoid vague or broad ranges.
   • Funding Rationale: Provide a brief explanation of why you need this specific amount and how it was calculated.

2. Outline Use of Funds:

   • Detailed Breakdown: Show a high-level breakdown of how the funds will be allocated. Common categories include product development, marketing, hiring, and operational expenses.
   • Strategic Goals: Link the use of funds to specific strategic goals or milestones that the investment will help achieve.

3. Demonstrate Financial Planning:

   • Fiscal Responsibility: Show that you have a well-thought-out plan for the investment and that the funds will be used efficiently.
   • Future Projections: Indicate how the investment will impact your financial projections and business growth.

4. Set Expectations:

   • Valuation: If applicable, mention your company’s current valuation or the valuation you’re seeking.
   • Equity Offered: Specify the percentage of equity you are willing to give in exchange for the investment, or other terms if it’s a different type of financing (e.g., convertible note).

5. Create a Sense of Urgency:

   • Timeline: Provide a timeline for when you need the funding and outline any critical deadlines.
   • Opportunity: Highlight why now is the right time to invest, creating a sense of urgency and encouraging quick action.

Best Practices for Creating an Effective Ask Slide

1. Be Specific and Clear:

   • Avoid vague requests. Clearly state the amount of funding needed and the specific uses for it.
   • Use precise language and avoid jargon that might confuse the audience.

2. Visual Appeal:

   • Use visuals like pie charts, bar graphs, or infographics to illustrate the allocation of funds.
   • Ensure the slide is visually appealing and easy to read, maintaining consistency with the overall design of the pitch deck.

3. Link to Business Goals:

   • Clearly link the funding request to your strategic business goals and milestones.
   • Show how the investment will help achieve key objectives, such as market expansion, product development, or customer acquisition.

4. Highlight Key Metrics:

   • Include key metrics that demonstrate your business’s potential and how the investment will drive growth.
   • Metrics could include projected revenue growth, customer acquisition costs, and return on investment (ROI).

5. Address Risks and Mitigation:

   • Briefly address any potential risks associated with the use of funds and how you plan to mitigate them.
   • This shows investors that you have a comprehensive and realistic plan.

Example Structure of an Ask Slide

Slide Title: Funding Requirements

Content:

• Funding Amount:

  • “We are seeking $2 million in funding.”

• Use of Funds:

  • Product Development: $800,000 (40%)
  • Marketing and Sales: $600,000 (30%)
  • Hiring: $400,000 (20%)
  • Operational Expenses: $200,000 (10%)

• Strategic Goals:

  • “This funding will enable us to complete our product development by Q2, expand our marketing efforts to reach 1 million users, and hire key personnel to support our growth.”

• Valuation and Equity:

  • “We are offering this investment opportunity at a $10 million pre-money valuation, with 20% equity available.”

• Timeline and Milestones:

  • “We aim to secure this funding by the end of Q1 and begin scaling operations immediately to achieve a 50% increase in monthly active users by Q3.”

By effectively using the Ask Slide, you can clearly communicate your funding needs and convince potential investors of the viability and growth potential of your business, making it easier for them to decide to invest in your company.