Pitch Deck Definition? - What is it and why do you need one?
Are you ready for an in-depth Airbnb pitch deck analysis?
Three guys, an air-inflated mattress, an ingenious business idea, and a pitch deck that summarizes their entire startup concept in few simple words was the striking combination that gave rise to “AirBedAndBreakfast."
“AirBedAndBreakfast” (Airbnb) is a venture that started with Brian Chesky, Joe Gebbia, and Nathan Blecharczyk renting their apartment to 3 paying guests. This gave them the idea of starting their own unique business by connecting travelers (looking for rental rooms)to local homeowners (willing to rent their homes) and earning a few dollars in the process.
Turned down by 5, ignored by 2 but finally, in 2009, with a well-designed yet amazingly concise pitch deck, they were able to get a $600K from Sequoia Capital and YVentures.
So, what was so influential about Airbnb pitch deck that makes it a highly preferred pitch deck in today's business world?
Let’s have a slide break down analysis of the Airbnb pitch deck that finely illustrates the idea, conveys the company perception, and clarifies how the concept holds power for creating a considerable impact. And if you want to check the typical Pitch Deck Outline & Structure you can check this link to compare it with the Airbnb Pitch Deck.
A simple glance at your cover slide, and your investors will decide whether to read on or move on.
In the Airbnb pitch deck, a prominent company name, a simple yet striking tagline, and the motive behind the business venture are all fused together in one precise sentence.It looks like they put a lot of thought into that phrase to make it sound engrossing. The design and font of Airbnb slide deck are modest but easily legible and help define the purpose and even the target audience with ease.
The guys clarified the most common problems tourists face while traveling, including…
1. High rental prices for hotel rooms.
2. Finding a hotel that could connect them to the city culture.
3. Booking a room online with a local host is not currently supported by any app.
These three simple lines illustrate three significant problems of the travel industry and that too in a clear-cut way. With a single swipe, investors could grasp the whole concept and specification of the market AirBnB was targeting.
Also, the slide creates a connection with the next slide the investors will be viewing, keeping them on edge as to how the service intends to solve this problem.
Simplicity and being straightforward were two core elements of each Airbnb investor presentation slide, and this one is no exception.
Instead of going into a lengthy discussion about why their product or service can make a difference, they used easy words to summarize the core value of their business aspect and kept things relevant to their previous slides. The investors could clearly see and grasp the connection between the problem and the solution even if they are unfamiliar with the particular niche.
This is a powerful slide as it highlights the demand for the product and the opportunity for its future expansion. Airbnb uses Craigslist on one side of the comparison showing an increasing number of people trying to rent their houses, whereas CouchSurfing indicates travelers needing affordable rental options.
This shows, in simple words and a few numbers, the need and profitability of the idea. One can say it was the smartest slide of the deck.
Providing a market size analysis with facts and figures gave investors a complete picture of the business model of Airbnb.
It shows that about 2billion trips are booked online, which is the targeted market for Airbnb. Investors can clearly see right through those figures and understand that the product has a massive success chance once it makes it to the market.
The product slide gives a review of how the product has been simply designed to give access to users worldwide.
The founders clarified the main features of the product using screenshots to give investors a deeper insight into the product working model. On a personal note, a demo in the form of video at this point may also do the trick.
Every startup moves on with a business model to help them achieve success. But effectively explaining your business model like Airbnb is a tough job. This is often referred to as the killer slide in the Airbnb pitch deck as it clearly states that the company intends to capture the market by charging an average of $25 per transaction. With these figures, the company aimed to generate revenue of $200M by the end of 2011.
In simple words, it is an excellent move for capturing investor's attention by promising them a huge return on investment within a short period.
With this slide, AirBnB shows how they intend to grow and expand their business.
When you plan to reach $200 M in just 3years, you must have a strong marketing strategy for expansion and growth in place. The most excellent aspect of this slide was AirBnB's dual posting feature on Craigslist. Creating a simple program that would upgrade Craigslist by posting space from AirBnB's listing will make it available to a wider market, attracting more traffic to their site.
The image of the pitch deck competition slide elaborates how different and unique the AirBnB business model is.
This two-axis way clearly explains how their product has an upper edge in the competitive market. By being both affordable and online, Airbnb becomes the strongest competition. It surely is a good idea to define the unique side of your product as you want investors to realize the potential behind your startup.
Although it is a dynamic idea, using a table pointing out features and differences may look more professional.
Here, Airbnb decided to point out the benefits it offers over other competitors at that time. Firstly, it helps hosts find the right tenant that was by far a totally unusual idea. Next, it has a simple design, offer easy finding and listing option.
Defining your product and giving a quick overview of your product create an impact on the investors. Airbnb indeed made it count.
While introducing its company members, Airbnb deck sticks to the founding members who were truly dedicated to moving the company forward. As they were the only three minds behind the concept at that time, they kept it short and included only the team's core members.
Stretching the pitch deck with useless names and introductions will not bring you the funds you are looking for. So, keep it short.
Airbnb claimed it's worth and credibility in front of the investors by creating a separate slide for their press clippings. It shows you are serious about creating a brand for your startup venture, and you have already started working towards building an effective B2B marketing strategy.
Testimonials also improve your overall score of getting the funds you are looking for. By using images, names, and locations,AirBnB was able to create the authenticity of their product.
After pitching every tiny detail about their startup, they demanded a precise investment amount which isa fair way of winding up things. Airbnb deck clearly states that they intend to reach $2M revenue, and without disclosing much financial information, they requested a target amount from investors to give shape to their idea.
Here completes our thorough analysis of the Airbnb pitch deck. After analyzing the Airbnb slide deck, we can say that it is a recipe for acceptance by investors. Every slide from deck adds something new and meaningful to the pitch deck.
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