Risk Factors Template
Originally published: 16/10/2019 08:32
Publication number: ELQ-23980-1
View all versions & Certificate

Risk Factors Template

Should you include risk factors in an early-stage pitch deck?

What are risk factors?
As a public company in the US, you will need to file an S-1 to go public and then 10Ks and 10Qs, which are extremely long documents. These documents state the risk factors in the investment so that investors are aware of any risks involved, which is an SEC requirement.

Most common startup risks:
- Founder risk
- Market risk
- Competition
- Timing
- Future financing needs
- Marketing
- Distribution
- Product
- Hiring
- Location

You should think about each of these risks, and any others that might be included with your startup, and how you can minimize or eliminate enough of these risks to make your company fundable?

Why you might include risk factors in your pitch deck
- You can frame the discussion by presenting the risks yourself
-You can build trust and confidence with your investors

Why I don’t include a risk factors slide in a pitch deck
My view is that you absolutely don’t include a risk factors slide.. in your pitch deck! This is important. I’m not saying you should send or hand a slide with risk factors (and how you are going to manage them), I’m saying you don’t include them in your pitch deck – the one you send them in order to ascertain initial interest.

The goal of your (first) pitch deck is to get a meeting.
You don’t need to get into this level of detail yet. Investors just need to like the sector, market size, approach to a real problem and the team to care to learn more to continue a process with you.

To make life easier, this is a perfectly formatted template for you to evaluate your risk factors.

This Best Practice includes
1 PowerPoint Slide

Alexander Jarvis offers you this Best Practice for free!

download for free

Add to bookmarks




More Best Practices from Alexander Jarvis

See all

Any questions on Risk Factors Template?

The user community and author are here to help. Go ahead!

4.5 / 5 (4 votes)

please wait...