Fundraising

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

Comment

Image Credits: Cloudsmith (opens in a new window)

Back in September 2021, Cloudsmith raised $15 million in Series A funding for its cloud platform that manages companies’ software supply chains. At the time, that was the largest Series A round for a Northern Ireland company since 2005, so it definitely got something right! I was delighted to look over Cloudsmith’s deck to see how it did it. The deck included some redacted numbers, but there was still enough data to get a good picture.

We’re looking for more unique pitch decks to tear down; here’s how you to get involved. Read our 90+ Pitch Deck Teardowns here.

Slides in this deck

The presentation has 36 slides — 25 make up the main deck, eight are in the appendix and three are addenda. While it is substantial, there is room for improvement. For example, I’d remove unnecessary slides like the organizational chart (nobody cares and certainly not in an intro deck) and combine similar slides, such as the competition and competitor pricing slides. While there is much to appreciate about the deck, let’s take a closer look to identify other areas for refinement.

  1. Cover slide
  2. Mission
  3. Summary
  4. Problem / cause slide
  5. Problem / impact slide
  6. Solution — logistics slide
  7. Solution — Cloudsmith slide
  8. Case study
  9. Accumulating trust slide (customer list)
  10.   Product slide
  11.   Ecosystem slide
  12.   Positioning slide
  13.   Customer segmentation slide
  14.   Go-to-market slide
  15.   Market size slide
  16.   Market penetration map slide
  17.   Traction slide
  18.   Forecast slide 
  19.   Pricing slide
  20.   Partners slide
  21.   Organization chart
  22.   People slide (team)
  23.   Use of funds slide
  24. Raising Series A (ideal investor slide)
  25.   Closing slide
  26.   Appendix interstitial
  27.   Roadmap
  28.   Product
  29.   Target logos
  30.   Competition
  31.   “Why we win
  32.   “What’s your dream?
  33.   Competition pricing
  34.   Addendum interstitial
  35.   Net revenue retention
  36.   Growth plan

Three things to love about Cloudsmith’s pitch deck

Cloudsmith originally submitted its deck months ago, and every time I looked at it, I was frustrated by how much of the deck was redacted. It was hard to get a feeling for what impressed its investors to hand over the cash. But there’s still a lot to learn, even with information missing, so I decided to dive in. (Hey, startup founders: This is your very unsubtle hint to submit your own deck to the Pitch Deck Teardown series!)

Here are some slides that I liked:

A promising summary

[Slide 3] I love the at-a-glance approach here.
Image Credits: Cloudsmith

The summary slide for Cloudsmith effectively sets the stage for a comprehensive and enticing company overview. It functions as an engaging opener within the pitch deck, designed to clearly articulate what Cloudsmith does and its impressive performance to date. This all but ensures that potential investors understand the promising nature of the opportunity from the get-go.

This slide captures the essence of Cloudsmith’s operations and achievements in a compact yet potent format. It presents key information that informs and excites, creating a compelling case for why investment is not only an opportunity but also a strategic move for those looking to capitalize on emerging tech trends.

Although some figures are redacted, the visible metrics are quite promising, suggesting strong performance and potential. Even the redacted portions are “correct.” It’s a little sus to hide your NPS (net promoter score) — come on, that’s hardly a business secret — but you definitely want to show your ARR (annual recurring revenue), MRR (monthly recurring revenue), number of customers, etc.

However, the slide could be even more effective by including the financial “ask”: how much capital Cloudsmith is seeking and what the funds will be used for. Detailing the specific use of funds could help bridge the gap between investor interest and action, making a stronger case for why an investment now could be pivotal for Cloudsmith’s trajectory — and help build a little FOMO right out of the gate.

What’s now? What’s next?

[Slide 12] This is a great way to encapsulate progress to date and use that as a bridge to what your company is planning to do next. Great storytelling in action!
Image Credits: Cloudsmith

The remarkable “Now and Next” slide is a dynamic way to show the company’s substantial achievements and ambitious future plans. This slide artfully blends past triumphs with aspirations for growth, providing investors with a captivating narrative.

The slide illustrates Cloudsmith’s capabilities and solid foundation. It articulates the company’s practical benefits, simplifying complex technical concepts for investors. This clarity ensures that even those unfamiliar with the technical intricacies can grasp the significant value Cloudsmith brings to its customers.

Transitioning from the present to the future, the slide invites investors to embark on a shared vision with the company. The outlined expansion plans are not just about growth; they are also about leveraging existing strengths to build a thriving future.

Cloudsmith’s plans are not really detailed enough to be fully credible, however; this slide evokes my “Sure, yeah, and how are you going to do that?” snark. But I’m certainly paying attention at this point, and loving the forward-looking hint at the substantial growth the company is envisioning.

Helloooooo, traction

[Slide 17] That’s traction all right. But why did we have to wait until slide 17 to see it?
Image Credits: Cloudsmith

The best form of traction is revenue, and Cloudsmith has a graph displaying its ARR from August 2019 to April 2021, which looks healthy. Now, as the numbers are redacted, I can’t be certain exactly how healthy, but the graph is pointing in the right direction, and Cloudsmith knew that it needed to share those figures.

The company also included other useful metrics on its traction slide, indicating customer numbers, LTV (lifetime value) and CAC (customer acquisition cost), among others. Again, the figures are redacted, but assuming they’re healthy, this is a good example of what to include on a traction slide. There are no vanity metrics, and it’s not trying to use a crystal ball to look into the future, which by definition isn’t traction.

Now, given that this is a Series A financing, we’re talking about growth here, and most growth rounds are done exclusively on traction. If you have it, the fundraise will be pretty straightforward. If you don’t, well, you’re in for a tough time. So I have to ask: Why are we only getting this chart on slide 17? If this were my pitch deck, this would be slide 3 or 4; this is exponential growth(ish), and looking great. Lead with that!!

Three things that Cloudsmith could have improved

Before you start flinging your deck into the general direction of VCs, take a beat. Examine each slide in your deck. Ask yourself, “Does this slide actually help raise cash?” If not, ditch it. Sometimes, less is more. One killer slide can pack a bigger punch than a couple of lackluster ones. Trim the fat and keep your audience hooked on what really matters: your fundraising goals.

A quick shuffle that would help trim the fat and streamline the deck:

  • Delete slides 2, 21, 24, 29, and 32.
  • Merge slides 30 and 33, then move to the main deck and create single, better problem and solution slides.
  • Move slide 8 to the appendix and slides 28 and 31 to the main deck.

OK, with that reshuffle out of the way.

Two solution slides? Are you sure about that?

[Slides 6 and 7] OK, but why two of them?
Image Credits: Cloudsmith

Let’s get real about solution slides: They’re supposed to be your strategic ace up your sleeve, not a deep dive into the nitty-gritty. They should give a bird’s-eye view of how your company plans to tackle the big, bad problem you’ve laid out. But here we are, with two slides that seem to have forgotten their purpose in life and are lost deep in the weeds. It’s like Cloudsmith is trying to show off how much it knows rather than focusing on the strategic overview. Keep it high level, folks.

There’s slide 6, strutting around with its three boxes that scream, “I’m useful!” but whisper, “I’m not solving anything.” Sure, it’s packed with info, but it’s like that guest at the party who talks a lot but doesn’t really say anything important (I know this all too well, because I’m frequently that guest, but hear me out). These boxes might feel good about themselves, but they’re not doing the job of moving us toward a solution. It’s time to refocus and make sure every element on that slide is there to contribute to the solution, not just to take up space.

And don’t get me started on the full problem/solution quartet. The company has a narrative as clear as mud here. Four slides of dense text that probably seemed like a good idea at the time, but in reality, they’re just a homework assignment for your audience. If you had paired that bloated slide 5 with a streamlined slide 7, you’d have a sharper problem statement and a solution that doesn’t require a map and compass to understand. Instead, cut the clutter and make it easy for everyone to see the genius of your solution.

Hello, faces

[Slide 22] So, with whom are we speaking?
Image Credits: Cloudsmith

Oh, Cloudsmith, your team slide is a paradox wrapped in a PowerPoint. It’s somehow managing to give too much and too little at the same time: a magic trick no investor wants to see. There’s a deluge of details about the core team, which isn’t exactly what is needed to wow investors at this stage. They want the juicy stuff about why your founders are the chosen ones to lead this venture. You’re teasing with hints, but come on, give the full story. Dive deep and show why they’re the captains of this ship. And while you’re at it, throw in their LinkedIn profiles. It’s the digital age; investors are gonna stalk. Make it easy for them.

And speaking of unnecessary info, while it’s great to know who’s keeping the ship steady, a play-by-play on every core team member for a Series A pitch isn’t needed. What would spice things up is a quick mention of your overall headcount. It provides a glimpse of your scale and scope without bogging everyone down with the minutiae. Keep it sleek, keep it smart, and keep the focus on what really matters: making the investors believe you’ve got the best team to take this “to da moon,” as the crypto kids like to say

Here’s some money — now tell me what you’re going to spend it on

[Slide 23] Well this is hard enough to read, even if I wasn’t blue/blue color blind.
Image Credits: Cloudsmith

Could this half-assed financial riddle slide be any more vague? It dances around the topic of money like it’s a hot stove, vaguely hinting at how the company will spend the cash but clamming up regarding the actual amount it’s looking to raise. Here’s a tip: When you’re asking for money, don’t be shy. Spell it out, loud and clear. How much do you need? Don’t leave investors guessing or they might guess themselves right out of the meeting room.

And on that subject, ditch the percentages. They’re about as helpful as a chocolate teapot. Use hard numbers, dates and details. Say when you’re planning to make those key hires, and what these new knights in shining armor will cost you. More importantly, what dragons are they going to slay? Lay out the goals these hires will help you achieve, and please, for the love of clarity, make it specific — the how, what, when, where and why. Offer investors the roadmap, not just the destination.

Now, about those goals: You’ve got aspirations, but how are you going to turn those daydreams into reality? What needs to happen? Do you need people, tools and infrastructure? And how much will these dreams cost? Once you’ve sorted all that, dazzle with the potential benefits. What wonders will these investments work for your company? Remember, it’s all about SMART goals here: specific, measurable, achievable, relevant and time-bound. Tell the investors what they’ll get for their money, and make it clear that if you hit those goals, you’ll be able to raise a chunky Series B to keep chasing that ARR figure up and to the right.

The full pitch deck

If you want your own pitch deck teardown featured on TechCrunch, here’s more information. Also, check out all our Pitch Deck Teardowns all collected in one handy place for you!

More TechCrunch

Silo, a Bay Area food supply chain startup, has hit a rough patch. TechCrunch has learned that the company on Tuesday laid off roughly 30% of its staff, or north…

Food supply chain software maker Silo lays off ~30% of staff amid M&A discussions

Featured Article

Meta’s new AI council is composed entirely of white men

Meanwhile, women and people of color are disproportionately impacted by irresponsible AI.

6 hours ago
Meta’s new AI council is composed entirely of white men

If you’ve ever wanted to apply to Y Combinator, here’s some inside scoop on how the iconic accelerator goes about choosing companies.

Garry Tan has revealed his ‘secret sauce’ for getting into Y Combinator

Indian ride-hailing startup BluSmart has started operating in Dubai, TechCrunch has exclusively learned and confirmed with its executive. The move to Dubai, which has been rumored for months, could help…

India’s BluSmart is testing its ride-hailing service in Dubai

Under the envisioned framework, both candidate and issue ads would be required to include an on-air and filed disclosure that AI-generated content was used.

FCC proposes all AI-generated content in political ads must be disclosed

Want to make a founder’s day, week, month, and possibly career? Refer them to Startup Battlefield 200 at Disrupt 2024! Applications close June 10 at 11:59 p.m. PT. TechCrunch’s Startup…

Refer a founder to Startup Battlefield 200 at Disrupt 2024

Social networking startup and X competitor Bluesky is officially launching DMs (direct messages), the company announced on Wednesday. Later, Bluesky plans to “fully support end-to-end encrypted messaging down the line,”…

Bluesky now has DMs

The perception in Silicon Valley is that every investor would love to be in business with Peter Thiel. But the venture capital fundraising environment has become so difficult that even…

Peter Thiel-founded Valar Ventures raised a $300 million fund, half the size of its last one

Featured Article

Spyware found on US hotel check-in computers

Several hotel check-in computers are running a remote access app, which is leaking screenshots of guest information to the internet.

10 hours ago
Spyware found on US hotel check-in computers

Gavet has had a rocky tenure at Techstars and her leadership was the subject of much controversy.

Techstars CEO Maëlle Gavet is out

The struggle isn’t universal, however.

Connected fitness is adrift post-pandemic

Featured Article

A comprehensive list of 2024 tech layoffs

The tech layoff wave is still going strong in 2024. Following significant workforce reductions in 2022 and 2023, this year has already seen 60,000 job cuts across 254 companies, according to independent layoffs tracker Layoffs.fyi. Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized…

11 hours ago
A comprehensive list of 2024 tech layoffs

HoundDog actually looks at the code a developer is writing, using both traditional pattern matching and large language models to find potential issues.

HoundDog.ai helps developers prevent personal information from leaking

The changes are designed to enhance the consumer experience of using Google Pay and make it a more competitive option against other payment methods.

Google Pay will now display card perks, BNPL options and more

Few figures in the tech industry have earned the storied reputation of Vinod Khosla, founder and partner at Khosla Ventures. For over 40 years, he has been at the center…

Vinod Khosla is coming to Disrupt to discuss how AI might change the future

AI has already started replacing voice agents’ jobs. Now, companies are exploring ways to replace the existing computer-generated voice models with synthetic versions of human voices. Truecaller, the widely known…

Truecaller partners with Microsoft to let its AI respond to calls in your own voice

Meta is updating its Ray-Ban smart glasses with new hands-free functionality, the company announced on Wednesday. Most notably, users can now share an image from their smart glasses directly to…

Meta’s Ray-Ban smart glasses now let you share images directly to your Instagram Story

Spotify launched its own font, the company announced on Wednesday. The music streaming service hopes that its new typeface, “Spotify Mix,” will help Spotify distinguish its own unique visual identity. …

Why Spotify is launching its own font, Spotify Mix

In 2008, Marty Kagan, who’d previously worked at Cisco and Akamai, co-founded Cedexis, a (now-Cisco-owned) firm developing observability tech for content delivery networks. Fellow Cisco veteran Hasan Alayli joined Kagan…

Hydrolix seeks to make storing log data faster and cheaper

A dodgy email containing a link that looks “legit” but is actually malicious remains one of the most dangerous, yet successful, tricks in a cybercriminal’s handbook. Now, an AI startup…

Bolster, creator of the CheckPhish phishing tracker, raises $14M led by Microsoft’s M12

If you’ve been looking forward to seeing Boeing’s Starliner capsule carry two astronauts to the International Space Station for the first time, you’ll have to wait a bit longer. The…

Boeing, NASA indefinitely delay crewed Starliner launch

TikTok is the latest tech company to incorporate generative AI into its ads business, as the company announced on Tuesday that it’s launching a new “TikTok Symphony” AI suite for…

TikTok turns to generative AI to boost its ads business

Gone are the days when space and defense were considered fundamentally antithetical to venture investment. Now, the country’s largest venture capital firms are throwing larger portions of their money behind…

Space VC closes $20M Fund II to back frontier tech founders from day zero

These days every company is trying to figure out if their large language models are compliant with whichever rules they deem important, and with legal or regulatory requirements. If you’re…

Patronus AI is off to a magical start as LLM governance tool gains traction

Link-in-bio startup Linktree has crossed 50 million users and is rolling out the beta of its social commerce program.

Linktree surpasses 50M users, rolls out its social commerce program to more creators

For a $5.99 per month, immigrants have a bank account and debit card with fee-free international money transfers and discounted international calling.

Immigrant banking platform Majority secures $20M following 3x revenue growth

When developers have a particular job that AI can solve, it’s not typically as simple as just pointing an LLM at the data. There are other considerations such as cost,…

Unify helps developers find the best LLM for the job

Response time is Aerodome’s immediate value prop for potential clients.

Aerodome is sending drones to the scene of the crime

Granola takes a more collaborative approach to working with AI.

Granola debuts an AI notepad for meetings