Pitch Deck vs Business Plan: What's Best to Raise Funds for Your SaaS MVP?

Pitch Deck vs Business Plan: What's Best to Raise Funds for Your SaaS MVP?

When launching your SaaS Minimum Viable Product (MVP), fundraising is one of the most critical stages of your journey. Two primary tools are at your disposal to attract investors: the pitch deck and the business plan. Both have their strengths, but the best choice depends heavily on your startup’s stage, audience, and funding goals.

In this article, we'll clearly define both tools, explore their strengths and weaknesses, and help you determine which is the ideal approach to fund your SaaS MVP effectively.

What is a Pitch Deck?

A pitch deck is a concise, visually engaging presentation (usually between 10-20 slides) designed to quickly attract and maintain an investor’s attention. Its goal is to generate immediate interest and prompt further conversation.

Strengths of a Pitch Deck:

• Conciseness: Quickly communicates the value proposition, market opportunity, and competitive advantage.
• Visual appeal: Easier to digest, compelling graphics can effectively illustrate complex concepts.
• Adaptability: Simple to update, adjust, and personalize for different investor meetings.

Limitations of a Pitch Deck:

• Lack of deep detail: Investors may require supplementary information after initial interest.

When to Use a Pitch Deck?

If you’re approaching angel investors, accelerators, or venture capitalists in early-stage funding rounds (seed or pre-seed), a pitch deck is typically your strongest option.

The Business Plan: A Comprehensive Overview of Your Startup

A business plan is a detailed document outlining your company's operational, marketing, and financial plans over the next several years. Typically ranging from 20-50 pages, it's designed for an in-depth evaluation of your business's viability.

Strengths of a Business Plan:

• Depth of Information: Provides extensive data on market analysis, competition, financial projections, and strategy.
• Detailed financial projections: Crucial for investors needing thorough analysis to assess risk.
• Long-term perspective: Demonstrates a clear roadmap, reassuring investors of your seriousness and preparedness.

Limitations of a Business Plan:

• Length and complexity: Can overwhelm potential investors, especially in early funding rounds.
• Less flexibility: Harder to quickly update or adapt based on feedback.

When to Choose a Business Plan:

A business plan is highly recommended when approaching banks, institutional investors, or during later-stage funding rounds, where comprehensive due diligence is required.

Which Is Best for Your SaaS MVP?

When you're raising funds specifically for your SaaS MVP, investors usually prefer clarity and brevity. They want to see the problem you're solving, your unique solution, market potential, and your roadmap to profitability.

• If you're targeting angel investors, incubators, or accelerators:
  Go for a pitch deck. It communicates quickly and visually, giving just enough information to spark interest.

• If you're seeking significant funding from venture capitalists or institutional investors:
  Prepare a pitch deck first, but have a comprehensive business plan ready. Investors will often request deeper insights once initial interest is established.

Conclusion: Which Tool Should You Prioritize?

For most SaaS startups looking to fund their MVP, your best initial bet is a compelling, clear, and concise pitch deck. Yet, it’s wise to have a comprehensive business plan ready to answer investors’ detailed questions in the subsequent stages of your fundraising journey.