22 April 2025
Alright, let’s cut to the chase. Spotting the next big thing in the startup scene isn’t just about numbers; it’s about vision, passion, and a dash of that “wow” factor. Drawing from the battle-tested wisdom of Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups and hard-earned experience, here’s your insider’s playbook for dissecting a pitch deck and uncovering those hidden gems.
- Is there a real fire to fight? Forget fluffy problems. We want to see a scorching market pain point and a solution that’s pure adrenaline. A killer value proposition that hits you right between the eyes is what we’re after. If it’s vague, it’s a pass.
- Are we talking a tidal wave or a puddle? Size matters. We’re hunting for explosive market opportunities. The Gust Guide nails it – scalability is king. Show me the data: TAM, SAM, SOM. Prove the demand is real and that this startup can grab a lion’s share.
- Dream team or dud squad? The team slide? Gold. We need founders who are rockstars in their field, with skills that mesh like gears. Passion? Non-negotiable. Adaptability? Essential. A weak team? That’s a red light flashing.
- Money machine or wishful thinking? A revenue model that’s slick and sustainable is the name of the game. How will they rake it in? What’s their pricing edge? Forget unicorns with no clear path to profit.
- Are people actually buying it? Traction is our proof in the pudding. Customer wins, revenue, partnerships – show me the momentum. User growth, pilot successes? Yes, please. No traction? Big red flag.
- What’s their secret sauce? Unique product or service? Show me the magic. Prototype, MVP – let’s see it. Patents, proprietary tech? That’s what sets them apart. We need to know they’re not just another “me too.”
- Show me the money! Financial projections should be grounded in reality, not fantasy. Funding ask needs to match milestones, with a clear plan for every rand. Wild guesses and vague budgets? No thanks.
- Who’s in the arena? Acknowledging competitors shows they’re serious. A clear competitive landscape and a sharp edge? That’s what we want. Ignoring the competition? That’s just naive.
- Where’s the exit strategy? The Gust Guide is spot on: exits drive returns. Acquisition potential, IPO dreams – let’s see the vision. No exit strategy? That’s a major gap.
- Does it spark joy? A polished, punchy deck (10-15 slides) screams professionalism. Story must flow, jargon must go, and it needs to stir something in you. Back it all up with data.
By mastering these points, you’ll spot the startups with true potential, dodge the duds, and make investments that could just change the world – and your portfolio.
