All entrepreneurs must go through the painstaking and often challenging process of creating a pitch deck to present to potential investors. You want to ensure a solid and complete pitch deck that will give you the best chance to secure funding for your startup.

Although investor pitch deck interactions increased by 12.11% in 2022, the average time spent on each pitch remains under three minutes. That means you have less than 180 seconds to make a strong impression. 

The financial section is one of the most important parts of your pitch deck because it tells investors how much money you need, how you plan to use it, and how you will make a return on investment. Below, you’ll learn about some key elements for this section.

What Is the Financial Section in a Pitch Deck?

A pitch deck typically has the following sections:

• Founder/Market fit or Why
• Traction (if available)
• Problem
• Solution
• How it Works
• Market Opportunity
• Competition
• Go to Market
• Business Model
• Financials and Ask
• Team

The financial section is where you will include information about your company’s financials, such as your revenue, expenses, and growth. You should also include information on your use of funds and how you plan to make a return on investment. Here are some questions this section should answer:

• What are your revenue and expenses?
• How many customers will you have? What is your burn rate?
• What are your financial projections?
• Have you used the funding from any previous investors?
• How will you make and spend money?
• What are the key drivers underlying your growth?
• What are the barriers to your growth?
• How long does it take before you hit break-even or be cash-positive?
• In a conservative vs optimistic scenario, how much revenue do you forecast in 5 years?

Things to Include In Your Pitch Deck’s Financial Section

Typically, the financial section in a pitch deck comprises one to three pages. It should include the following elements.

Three Statements: Balance Sheet, Income Statement, Cash Flow Statement 

The balance sheet shows your company’s financial health at a specific point in time. It lists your company’s assets, liabilities, and equity. The information is important for investors to assess your company’s risk.

When putting together your balance sheet, make sure to include the following:

• A description of your company’s current financial situation
• An overview of your company’s financial history
• Your company’s financial goals

The income statement shows your company’s revenue and expenses over a period. For instance, you can include information for the past year, quarter, or month.

Investors focus on your company’s revenue and profit margins. They also want to see if your company is growing or shrinking. The income statement is a good way to show that.

The cash flow statement exhibits a company’s incoming and outgoing cash during a stated period. It can give stakeholders an idea of whether or not the company is generating positive cash flow. 

Key Highlights/Metrics From Projections

Every company is different, but most include some form of projection in their pitch deck. For instance, you might include sales projections for the next year or two.

As a SaaS startup, you may want to show your monthly recurring revenue (MRR) growth. Meanwhile, an e-commerce or retail company might focus on gross merchandise volume (GMV) growth.

The key is to focus on the metric that best tells your company’s story. Your projections should be based on your company’s historical data and current trends.

There are a few things to keep in mind when creating projections:

• Be Realistic: Don’t try to inflate your numbers or make them look better than they are. Investors can see through that, and it will only hurt your credibility.
• Be Conservative: Rather than being too optimistic, it’s better to be too conservative. It shows that you’re aware of and mindful of the risks involved. You should cover best to worst-case scenarios in your projections. For instance, if you’re projecting sales for the next year, show a range rather than a single number. Plus, factor in a recession, unprecedented growth, consumer trends, seasonality, and anything else that might impact your projections.
• Don’t Include Too Much Detail: You don’t need to go into great detail regarding your projections. Just include the information that’s necessary to give investors a general idea.
• Use Simple Language: Remember, not everyone is a financial expert. Use language that’s easy to understand and avoid jargon.

Use of Funds

The financial section of your pitch deck should explain how you plan to spend your funding. It’s important to show potential investors that you have a solid plan for using their money to grow your business.

Some key points to include in your use of funds slide are:

• How much you are looking to raise
• A breakdown of how you plan to use the funding (e.g. product development, marketing, etc.)
• How the funding will help you grow your business

How to Perfect the Financial Section of Your Pitch Deck?

By now, you know what to include in this section. Here are some tips for presenting this information in the best way.

Use Graphs and Charts

The best way to present financial information is through graphs and charts. That makes it easier for investors to understand the data and see trends.

Plus, it takes up less space than tables full of numbers. If you’re using charts, make sure they’re clear and easy to understand. Use colors to highlight important information.

Focus on 2-3 KPIs (Key Performance Indicators)

Include the most important financial information in your pitch deck. Don’t try to cram everything in there.

Suppose you’re a startup providing lodging in tourist-friendly cities for solo women travelers. You can include the following KPIs:

• Lodgings booked through your platform
• Revenue generated
• % of positive reviews
• Repeat bookings

Focus on metrics that will show investors your business is worth the investment.

Get a Custom-Built Financial Model

No two startups are the same, so your financial model shouldn’t be either.

You can find generic templates online, but they won’t be tailored to your specific needs. A service like Numberly can be of immense help in this regard, creating investor and pitch-deck-ready financial models for startups.

At Numberly, we create financial models that meet your specific needs. Since the tailored financial model reflects your business and only contains the features you need, it will be easy to use and straightforward to present (to an investor).

You can add any financial statement you need, including balance sheets and company valuations. Are investors short of time? No worries. Our smart summary dashboard will give them a snapshot of your business in under two minutes.

Book a quick call to learn more.