The Heart of Your Startup: The Problem Slide
This slide explains the essential purpose of your startup. While most founders focus on creating exceptional products, the standout founders dig deep into their customers' pains.
The problem slide is your pitch deck's backbone. It's crucial that you articulate the problem swiftly and plainly; investors should be able to grasp it within 15-30 seconds. Frame the issue as a question that emotionally and logically resonates with the audience.
For instance, if your startup is a mobile therapy tool for youth, you might frame the problem as: "Ever thought about how many people suffer from depression but can't access a therapist?" or "How much could opioid use drop if effective therapy were available for all mental health sufferers?" "Consider the emotional toll on individuals and families dealing with untreated mental illness, not to mention the societal costs."
Be clear about answering these problem questions up-front: -
- What is the problem?
- Who is affected by the problem (one or multiple groups)?
- How can you quantify the problem in monetary terms (hard and soft costs)?
- What solutions already exist for the problem?
- Why aren’t the current solutions good enough?
- What prevented the problem from being solved in the past?
When addressing multiple problems, prioritize the most significant one to prevent overwhelming your investor. Remember that investors are just being introduced to your problem-solving approach while it occupies your thoughts constantly.
When Uber pitched for its initial investments, it created two problem slides to address two target audiences. It highlighted the critical issues for passengers and drivers (who are both beneficiaries of the Uber service).
Consider presenting a problem tree, featuring the central problem as the stem and linking issues as branches. Keep it simple by focusing on the primary problem first.
Ideally, relate the problem from your perspective as a disappointed customer or an industry worker who identified a gap.
Defining the problem this way simplifies transforming it into a unique opportunity for your startup to leverage using your specific insights and innovations.
To help the investor understand the problem better, you could list companies that have tried to solve it and explain why they have yet to succeed and why not.
Include reliable data from trusted sources in every slide. The most compelling evidence comes from people who found a solution through your startup.
Avoid jargon that investors might not get, and avoid fluffy statements.
Be sure investors don’t question your problem thesis, which could challenge the whole premise of your startup.
