Gone are the days of centralized control in the music industry. The digital age has transformed how we listen to music; streaming services are king, with Musical Pursuits reporting that 84% of U.S. music revenue now comes from streaming.
This exciting shift creates a goldmine of opportunities for innovative music startups: from concerts/events to audio collaboration tools. But with so many music business ideas out there, how do you land funding? Investors want to see a clear solution to a real problem, presented in a memorable pitch deck that shows you have found an edge in the ever-changing music industry. Here’s where a compelling pitch deck becomes crucial.
In this guide, we’ll equip you with the knowledge to create a music startup pitch deck that resonates with investors and propels your business forward.
What is a music pitch deck? What is its purpose?
Whether you’re putting on a music festival or building a music tech startup, you’ll need a pitch deck: a brief presentation for investors and partners that captures the core elements of your idea in 10 – 15 slides. It’s your chance to hook early sponsors with a clear picture of the problem you’re solving, your innovative solution, and the revenue potential for the business.
What slides should be in your music startup’s pitch deck?
Here’s a breakdown of the essential slides an effective music pitch deck should include:
Cover Slide
Make a strong first impression with a visually appealing cover slide that features your company logo, tagline, contact information, and an image or background that reflects the essence of your startup. For instance, if you’re launching a new music streaming service, you might use a vibrant image of people enjoying music on their devices. Ensure the design aligns with your brand identity and sets the tone for your presentation.
Problem
In your next slide, dive right into the heart of the matter. Clearly define the challenge your business aims to tackle. Not every music founder solves a problem: some companies solve challenges faced by musicians, others fill a gap in the market. Use data and anecdotes to illustrate your points and paint a convincing picture.
Solution
The solution slide should demonstrate how you plan to fill the gap or solve the problem outlined earlier. Explain your product or service clearly and concisely, highlighting the value proposition you offer to both all parties in the music industry. Showcase key features and benefits, such as community engagement or personalization.
How It Works
Focus on user experience over technical details. Utilize screenshots, mockups, or even a short video demonstration to showcase what your vision looks like. For example, a tech company may show a user dashboard, whereas a festival might include a moodboard of reference photos.
Remember, you want investors to grasp your broader vision without getting bogged down in the technical details.
Competitive Advantage:
What makes your startup stand out from the crowd? Define your unique selling proposition (USP) and explain how you’ll establish a “moat” to defend against existing or future competitors.
For example, transparency, user engagement, and exclusive access are often competitive advantages for upstart music business. Explain how this sets you apart from traditional offerings and incumbents in the space. Discuss any barriers to entry you expect and how you will overcome them, such as licensing or exclusive partnerships with artists, labels, and venues.
Market & Opportunity
Quantify the market size and growth potential for your business. Utilize data and industry trends to demonstrate the demand for your solution. Find data specific to your business — don’t use generic figures such as the total music industry size. For example, if your startup empowers independent artists, you could highlight the percentage of streaming revenue that unsigned artists are responsible for.
Applications / Target Users:
Who is your ideal customer? Develop a detailed profile of your target users, including demographics, music preferences, and consumer behavior. Detail how these users will benefit from your offering, and how it matches with recent shifts in consumer trends.
Traction
Demonstrate your progress so far. Showcase any early wins, such as waitlists / user growth, partnerships secured, press mentions, or intellectual property (ie. trademarks, patents). This slide should build credibility and demonstrate momentum to create “FOMO” for investors. Later-stage startups will often weave traction into every slide of their pitch.
Business Model
Explain how your business generates revenue. Detail your pricing model, revenue streams, and unit economics, such as profit margins and the lifetime value of a customer (LTV) versus customer acquisition cost (CAC). Provide a clear path to profitability and sustainable growth.
Team
Introduce the key players driving your startup forward. Showcase the expertise and experience your team brings to the table, particularly within the music industry or relevant fields.
Investment
Be upfront about your funding needs. Clearly state the amount of capital you are seeking and how the investment will be used to fuel your business growth. Be clear about how the capital will be deployed, including capital allocation and target milestones. As a founder, it’s always best to under-promise and overdeliver, so set realistic goals and be conservative in budget planning to ensure you have enough runway to the next round.
Roadmap
Provide a timeline of your future plans and milestones. This slide should show a clear and achievable path for growth and development over the next few years. Present your development plans and upcoming milestones, showcasing your commitment to continuous improvement and innovation in both product and go-to-market strategy.
Vision
Share your long-term vision for the product and the company. Explain the broader impact you aim to have in the music industry and how you plan to evolve and innovate over time.
Call-to-Action
End with a strong call-to-action. Encourage your audience to take the next step, whether it’s scheduling a follow-up meeting, visiting your website, or contacting your founders. Make it as easy as possible for interested parties to reach you.
Examples of successful music pitch decks
Learning from successful examples is invaluable. Explore these pitch decks of music industry giants to understand how established companies communicated their value proposition:
- Spotify: Explore the pitch deck used by Daniel Ek and Martin Lorentzon to launch Spotify, now a global leader in music streaming.
- Chartmetric: Check out how Chartmetric used their pitch deck to raise funding for their innovative music analytics platform that has rapidly become an industry standard.
- OurSong: See the pitch deck that OurSong used to win backers including award-winning artist John Legend for their mission to democratize music creation and distribution.
- Fyre Festival: Fyre Festival’s pitch deck is a notable example of the dangers of bold promises gone wrong.
Tips for designing a music pitch deck
Here are some additional tips to keep in mind as you craft your music startup pitch deck:
- Focus on the Market & Opportunity: Investors are more interested in the “why” than the “how.” While explaining how your product works is important, prioritize showcasing the market size, growth potential, and industry trends that validate your business opportunity.
- Dive Deeper than Market Size: Market size is important, but it’s just one piece of the puzzle. Use data and trends to highlight why your solution is needed now, not later. An effective pitch should make investors feel the pressure to make a timely “entrance” into the space you’re building.
Ready to start building your music pitch deck?
Building a music startup is exciting, but building a pitch deck can be a mind-numbing challenge for founders. To streamline the process and ensure you hit all the key points, consider this Music Pitch Deck Template by VIP Graphics. Ditch the blank draft and embrace the power of an expert-designed template!
