The Value Proposition builds on the key message you have got across in your Company Overview (Slide 1). We have spotted a Problem / Opportunity (Slide 2) for a large but focused market segment, come up with a unique Solution (Slide 3) and here are the Benefits (Slide 4) we create for our customers.
Slide 2: Problem/Opportunity
You need to make it clear that there is a big, important problem that you are going to solve, or an opportunity you are going to exploit. Explain the market dynamics surrounding the opportunity—why does this situation exist and persist, and why is it only now that it can be addressed? Avoid stating the obvious though – you do not have to tell investors that there are a lot of cell phones out there or that teenagers like to socialize. It also helps to identify the particular market segment you are targeting, and if possible quantify it. This shows that you really understand where your prospective customers are from the ground up, and will tie to the go to market strategy.
Slide 3: Solution
What specifically are you offering to whom? Avoid industry jargon. If you can demonstrate your solution (briefly) in a meeting, this is the place to do it. You may need to show how your solution fits in the value chain or ecosystem of your target market. Do you change the way certain business processes get executed, or do you just do them the same way, but faster, better and cheaper? Do you disrupt the current value chain, or do you fit into established channels? Who exactly is the buyer, and is that person different than the user?
Slide 4: Benefits/Value
State clearly and quantify to the extent possible the three or four key benefits you provide, and who specifically realizes these benefits. Do some constituents benefit more than others, or earlier than others? These dynamics should inform your go-to-market strategy, and your product/service roadmap, which you will discuss later.
One of my Singapore friends, Danny Tan, did a abrilliant job of explaining the value proposition of Foound when he launched at Demo:
