The Difference Between an Information Memorandum and a Pitch Deck

 

Have you ever been to a situation where you are not certain if you need an information memorandum or a pitch deck for your business?

Information Memorandum and a Pitch Deck can be valuable when presenting your business if you know when to use what type of document.

Professional business plan writers and other experts know how busy and engaged you are with growing and establishing your company. If you’re not sure which document you need, this will help you determine that quickly!

Here is the difference between an information memorandum and a Pitch Deck.

Information Memorandum

When you provide a comprehensive overview of your business to potential investors or buyers, you will use a confidential information memorandum, also known as an offering memorandum. It overlooks the past, current, and expected future performance of your company.

You may use this document to:

- raise funds

- remove assets

- sell the entire business

Like you, investors and potential acquirers are busy people. These documents will make their decision-making easier and quicker.

An information memorandum is important because you can completely provide the summary and most important details of the main aspects of your business and future transactions.

Information Memorandum includes the following sections:

Overview and Key Investment Highlights – the information of your company’s major milestones

Company Information – description of the major milestones, management team, ownership, organizational structure, and the expertise of employees

Products and Services – describes what products or/and services your company offers

Market and Competition – the industry and market overview, current and expected sales, and target audience

Proposed transaction – A summary of the transactions you propose from potential investors.

Pitch Deck

A pitch deck, also known as a startup pitch deck or slide deck, is a visually based brief slide presentation of your business plan. Having a Pitch Deck can be a vital tool when raising funds for your business. These documents can open a door and secure you the next meeting with an investor. The optimal number of slides of a pitch deck is between 10 and 20.

A pitch deck is often presented face to face to potential investors but can also be sent as a way to get a foot in the door.

Here are a few tips on how to present your pitch deck.

Tell a story

Even busy people like investors like to hear an engaging short story about your business.

Be concise

Today, we are overwhelmed with information, and people lose interest. Stay on the same page with your audience (in this case investors).

One slide = one idea

Sometimes, less is more.

Good First Impression

The first two minutes or first few slides are the most important. A good first impression sets the tone of the whole presentation.

Show Your Team

Present the people that are working with you and their value to the company.

Do your Homework

Know your numbers by heart. Financials are the section that interests the investors the most. Defend your numbers, and you will increase your chance of approving the proposed fund.

While the Information Memorandum has a more detailed approach to presenting a business, the pitch deck is all about the visual effect. Both documents represent the same information, the difference is the depth of that information.

If you have trouble composing any of these documents, seek out Professional Business Plan Writers that can assist you.