For startup founders, the pitch deck is a well-known necessity and an essential for communicating vision, traction and opportunity to potential investors. But what’s less talked about, particularly in the African startup ecosystem, is the fact that venture capital (VC) firms also need pitch decks.
Yes, it’s not only startups that need to pitch for funding. VC firms prepare pitch decks for Limited Partners (LPs), the institutional and high-net-worth investors who back their funds. These decks are central to a VC’s capital-raising efforts, detailing everything from investment strategy and team expertise to fund structure and historical performance. The pitch is essentially a presentation of the fund’s value proposition.
In today’s world, LPs are asking sharper questions, and VCs are expected to demonstrate not just access to deal flow, but strategic edge, value creation and long-term fund durability. In this guide, we break down:
What a VC pitch deck is
How it differs from a startup deck
What LPs are looking for
The core metrics used to evaluate funds
Whether you’re raising your first VC fund or scaling a subsequent vehicle, this guide will help sharpen your message and improve your chances of securing LP commitments.
What is a VC Pitch Deck?
The investor/VC pitch deck is a structured presentation that outlines a VC firm’s investment thesis, team, strategy, and value proposition to potential LPs. Unlike startup decks, which aim to secure early-stage capital for product development and market entry, VC decks are about fund management, not product building.
An effective VC pitch deck serves three core purposes:
Articulates the fund’s mission and the market inefficiencies it seeks to address
Showcase the expertise and track record of the firm’s team
Outline the value proposition and potential returns
Let’s look into the essential elements.
Key Slides to Include in Your VC Fund Pitch Deck
Here is a breakdown of thecritical information every effective VC pitch deck needs to have.
Fund Overview – The pitch needs to present a clear and compelling mission statement. This statement needs to define what the fund aims to accomplish and the problem it solves in the market.
Team Expertise – Investors want to see the people behind the firm. This section will introduce the firm’s team and showcase their qualifications, experience and track record.
Fund Focus – This section needs to define the investment thesis: industries, startup stages, high-growth opportunities and geographies targeted by the fund.
Proof of Success – Here is where the pitch will speak on your fund’s credibility by demonstrating previous successes.
Fund Structure and Terms – Investors will want to understand how the fund operates. Firms need to define the type of fund they have, outline management fees and detail how investment decisions are made.
Deal Sourcing Strategy – Firms must explain how they source deals and why their process is better than other firms, by demonstrating their network connections, proprietary methodologies or tools and their competitive edge.
Portfolio Development – Show LPs how the firm plans to allocate investments and mitigate risks. This means showing how capital will be distributed, efforts in balancing risk and returns and leveraging visuals to show hypothetical portfolio allocation (e.g., 40% early-stage, 20% growth-stage).
VC vs Startup Pitch Decks: Key Differences in African Markets
The main difference between startup and VC pitch decks is intention. Founders are pitching to raise money, while VCs are looking to manage it. Here are thefundamental differences between the two.
Opening Focus:
For startups – Defining the problem and highlighting the data that shows how big of an issue it is.
For VCs – Here is where you define the mission of your firm and what makes its approach unique.
For VCs – Demonstrate track record of investments including exits, fund returns and past successes.
Financial Statements:
For Startups – Must have three-to-five-year financial forecasts. Newer startups might not have financial data; however, good record-keeping can also be sufficient.
For VCs – Typically, LPs will be more interested in the firm’s thesis, however, strong financial statements can give you a competitive advantage.
Team Expertise:
For Startups – This is very important and should be 1-2 slides maximum. The slides must outline each member’s knowledge, qualifications and experience, and their duties.
For VCs – In the VC deck, the team is critical. LPs will want to see that the team has prior experience that aligns with the fund’s mission.
Competitive Advantage:
For Startups – When pitching startups must have apre-determined valuation of the business, this includes a comparative analysis of existing competitors. Investors will want to see a full breakdown of competitors to demonstrate viability.
For VCs – Provide a brief outline of why the firm has a winning funding method.
Risk Mitigation:
For Startups – Must demonstrate how they have de-risked their solution. This can be done through demonstrating market traction, supporting data or customer feedback.
For VCs – VCs indirectly demonstrate de-risking through portfolio diversification.
Storytelling vs Data:
For Startups – Industry benchmarks say startup pitch decks must be 30% story and 70% metrics.
For VCs – Depending on how many funds the firm has raised, the pitch deck must showcase 70% story and 30% data.
What to Emphasise:
For Startups – Emphasise total addressable market (TAM), traction and growth.
For VCs – LPs will want to see the firm’s brand, deal flow and network/community.
Social Proof:
For Startups – Showcase customer and revenue milestones. This must be presented with accurate data.
For VCs – Highlight existing LPs, co-investors and portfolio founders.
Presentation Length:
For Startups – Typical startup pitch decks are 10-15 slides.
For VCs – Pitch decks can be between 20-40 slides, often with appendices.
All these factors differ depending on the firm itself and whether this is the first raise or more. In African markets, where both VC and startup ecosystems are still maturing, it’s especially important that VC firms demonstrate institutional readiness. That means clarity in thesis, precision in execution, and alignment with LP expectations.
Due Diligence: Key Questions LPs Ask Before Investing
In the world of fundraising, VC firms also experience the dreaded due diligence process. These are thecore pillars of LP due diligence.
1.Dealflow and Sourcing Strategy
What LPs will ask:
Where do you source deals?
What % is inbound vs outbound?
How do you receive allocations when rounds get heated?
These questions are asked to determine if the firm’s pipeline is still running successfully after the first two years. Basically, they’re asking if you have built a sourcing machine or dependent on circumstances (right place at the right time).
2.Differentiation and Competitive Edge
What LPs will ask:
What is the firm’s competitive edge?
Why should a founder pick you over the other existing funds?
LPs want to find out whether you have a strategy that gives you positive, consistent results and not just a broad/generic thesis that other firms follow.
3.Founder Support and Ownership Durability
What LPs will ask:
What does your firm actually do for founders?
How do you ensure your ownership does not disappear inSeries B?
LPs are aware that reserves and pro-rata rights can be meaningless if founders don’t trust you enough to want to keep working with you. The above questions test whether you’re only interested in writing cheques or being a partner who helps founders develop.
4.Track Record, Performance and Risk
What LPs will ask:
Show us your returns, gross and net profit
How do you mark companies?
What went wrong, and what has changed after unsuccessful investments?
LPs don’t mind seeing failed investments, they want to see that you understand risk, have adapted your strategy to address failures, and if your reporting aligns with industry standards.
5.Firm Durability, Terms and Alignment
What LPs will ask:
Why this fund size?
How much of your own money is in the fund?
What happens if a key partner leaves?
How do you handle sub-lines, NAV loans, continuation funds?
VC firms don’t fail because of boring social media pages; they fail because of bad structures. Fund governance matters. VCs need to show operational discipline and structural foresight. LPs back funds where the GP’s incentives are aligned with their returns.
Fund Metrics That LPs Use to Assess VC Performance
To truly understand how LPs determine if a VC firm is worth backing, you must understand fund-level metrics. Each of these metrics reveals a different element of fund performance. Here are the five KPIs every LP analyses.
1.TVPI (Total Value to Paid-In)
Formula: TVPI = (Residual Value + Distributions) ÷ Paid-In Capital
This formula shows the total return multiple, combining both realised and unrealised value. A TVPI of 2.0x means the fund has generated $2 of value for every $1 invested. This metric is mostly used when a firm has been in operation for a while (mid-to-late stage).
2.DPI (Distributions to Paid-In)
Formula: DPI = Cumulative Distributions ÷ Paid-In Capital
DPI reflects realised cash returns, allowing LPs to see how much capital has come back to the fund. A DPI of 1.0× means every dollar invested has been returned; 1.5× means you’ve made 50% profit in cash. This metric is mostly relevant to funds in the mid-to-late period, becoming the primary metric towards the end of the fund when most value must be realised.
3.RVPI (Residual Value to Paid-In)
Formula: RVPI = Residual (Unrealised) Value ÷ Paid-In Capital
This metric is used to capture the unrealised portion of a fund’s value. A 0.8x RVPI means there’s $0.80 of unrealised value for every dollar LPs invested, potential future upside still held in the portfolio. This metric is best suited for the early stage of a fund, because it declines as investments exit and DPI increases.
4.IRR (Internal Rate of Return)
Formula: The annualised discount rate that makes the net present value (NPV) of all cash flows (in and out) equal zero.
The IRR represents the speed and efficiency of returns and showcases how quickly the fund is creating value. In some cases, funds with the same TPVI can have different IRRs if one returns capital faster.
5.MOIC (Multiple on Invested Capital)
Formula: MOIC = Total Value of Investments ÷ Capital Invested (excluding fees)
The MOIC is the gross multiple of capital invested. This metric does not include time, fees or unrealised vs realised, only the total returns versus capital deployed in deals. These metrics are used by firms in a position to demonstrate gross performance.
Of all these five metrics, not a single one provides LPs with the full picture of a fund. IRR demonstrates time, DPI is reality and RVPI shows future promise. Smart LPs will triangulate all five, adjust for fund age, strategy and market conditions.
How to Build a High-Impact VC Pitch Deck in 2025
Raising a VC fund in Africa in 2025 requires more than a slick presentation. LPs are savvier, expectations are higher, and competition for capital is global.
A successful VC pitch deck must:
Lead with clarity and conviction
Show credible performance and team strength
Demonstrate a repeatable sourcing and investment model
Highlight strong alignment with LP returns
In a region poised for exponential growth, the winners will be VCs who combine local insight with institutional execution. Whether you’re closing your first vehicle or raising your third, the best pitch deck is one that communicates not just why your fund deserves capital, but why it’s built to deliver it back, with interest.
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Lungile is the Digital Editor for Startup.Africa, with a knack for storytelling, technology and innovative ideas. Working with Startup.Africa, she takes simple ideas and turns them into amazing stories.
Lungile Msomi
Lungile Msomi
