How to create the perfect Executive Summary

1. Start with a Compelling Company Overview

Objective: Provide a quick snapshot of your business that includes what you do, your unique selling proposition, and why your company matters.

Key Elements:

• Company Name and Logo: Start with your company’s name and logo for brand visibility.

• Tagline or Mission Statement: A short tagline or mission statement that summarizes your vision or purpose.

• What Your Company Does: One or two sentences explaining your product/service, industry, and unique value proposition.

Example:"Acme AI automates payroll and tax calculations for small businesses, saving them up to 10 hours per week and significantly reducing errors."

2. Define the Problem

Objective: Illustrate the problem you’re solving and emphasize its significance, showing that there’s a real need for your solution.

Key Elements:

• Brief Problem Statement: Summarize the problem in 1-2 sentences.

• Impact or Pain Points: Highlight why this problem is a pain point for your target customers.

• Relevant Data: Use one or two data points that underscore the problem’s scale or intensity.

Example:“Small businesses spend an average of 12 hours per week on manual payroll processing, costing up to $15,000 annually in productivity losses and causing frequent errors.”

3. Describe Your Solution

Objective: Show how your product or service effectively solves the problem in a way that is unique or more efficient than existing solutions.

Key Elements:

• One-Liner Solution Statement: A single line explaining what your solution does.

• Core Benefits: Highlight the primary benefits your solution delivers, focusing on measurable outcomes (e.g., time saved, costs reduced).

• Competitive Advantage: Briefly mention what sets your solution apart from alternatives.

Example:“Our cloud-based software automates payroll processing and tax compliance for small businesses, reducing time spent by 80% and eliminating costly errors.”

4. Highlight Market Opportunity

Objective: Present the market size and growth potential, making the case for why there’s a lucrative opportunity.

Key Elements:

• Total Addressable Market (TAM): Give a high-level overview of the overall market size.

• Serviceable Available Market (SAM): Describe the segment of the market that you could realistically target.

• Growth Potential: Mention any relevant industry growth rates, trends, or indicators that support demand for your solution.

Example:"The global payroll software market is valued at $10 billion and is projected to grow at 7% CAGR, with small and medium-sized businesses representing a $3 billion opportunity."

5. Describe Your Business Model

Objective: Show investors how your company makes money, including your revenue model, pricing strategy, and expected profitability.

Key Elements:

• Revenue Model: Outline how you generate revenue (e.g., SaaS subscription, freemium, commission).

• Pricing Strategy: Include the pricing tiers or a basic overview of your pricing.

• Unit Economics: If relevant, briefly mention customer acquisition cost (CAC), lifetime value (LTV), or gross margins.

Example:"We operate a SaaS subscription model, with packages starting at $49/month. Our unit economics are strong, with a CAC of $150 and LTV of $1,200."

6. Show Traction and Validation

Objective: Demonstrate that you have early success, validation, or traction that de-risks the investment opportunity.

Key Elements:

• Customer Metrics: Include key metrics like monthly recurring revenue (MRR), user growth, retention rates, or pilot results.

• Partnerships or Notable Clients: Mention partnerships, early adopters, or recognizable clients.

• Milestones Achieved: Highlight any significant achievements, such as product launches, revenue targets, or customer acquisitions.

Example:“Since launching six months ago, we’ve reached $50K in monthly recurring revenue and onboarded 300 paying customers with a 95% retention rate.”

7. Introduce Your Team

Objective: Highlight the experience and expertise that make your team uniquely qualified to succeed.

Key Elements:

• Founders and Key Team Members: Provide a brief introduction to the founding team and their relevant experience.

• Notable Experience: Mention any previous successes, relevant industry experience, or specialized skills.

• Advisors or Mentors: If applicable, mention notable advisors who bring additional credibility or networks.

Example:“Our founding team includes [CEO Name], who previously led product development at [Successful Company], and [CTO Name], who has 10+ years in SaaS engineering.”

8. Outline the Funding Ask and Use of Funds

Objective: Clearly state how much funding you’re seeking, why you need it, and how you’ll use it to drive growth.

Key Elements:

• Amount You’re Raising: Specify how much capital you’re seeking in this round.

• Use of Funds: Briefly outline how you plan to allocate the funds across major categories, like product development, marketing, or hiring.

• Milestones and Impact: State the milestones you plan to achieve with this funding, such as revenue goals, user growth, or market expansion.

Example:“We’re raising $1.5M to expand our sales and marketing efforts, accelerate product development, and reach 1,000 paying customers within the next 12 months.”

9. Closing Statement and Contact Information

Objective: Leave a strong, positive impression and provide a clear way to connect for further discussion.

Key Elements:

• Closing Summary: Briefly reiterate why your company is a great investment opportunity.

• Contact Information: Provide your contact details (email, phone) and any other relevant links (e.g., website).

Example:“With a strong team, validated product, and a large market opportunity, [Your Company] is positioned for rapid growth. We’d love to connect further to discuss how you can be part of our journey.”

Best Practices for the Perfect Executive Summary

1. Keep It Concise: Limit your summary to one page (or two pages at most). Investors prefer a quick overview.

2. Use Simple Language: Avoid jargon and keep language straightforward for easy readability.

3. Make It Visually Appealing: Use formatting techniques like bullet points, headings, and concise paragraphs. A visually appealing layout enhances readability.

4. Quantify Wherever Possible: Numbers are impactful and add credibility, so use them whenever you can (e.g., market size, growth rates, revenue projections).

5. Focus on Clarity and Consistency: Ensure your executive summary aligns with the rest of your pitch materials, like your pitch deck and financials.

6. Tailor to the Investor’s Interests: If possible, tailor your executive summary slightly to match the investor’s area of interest, stage, or industry focus.

Example Executive Summary Structure

Here’s a sample structure that you can use as a template:

[Company Name] Executive Summary

Company Overview:Acme AI automates payroll processing for small businesses, saving them time and reducing costly errors. Our mission is to empower small business owners to focus on growth, not paperwork.

Problem:Small businesses lose up to $15,000 annually on manual payroll errors and compliance issues, a costly drain on productivity.

Solution:Our platform automates payroll and tax compliance, reducing time spent by 80% and minimizing errors by integrating directly with major accounting software.

Market Opportunity:The global payroll software market is projected to reach $10B by 2027, with SMBs representing a $3B opportunity in the US alone.

Business Model:SaaS subscription starting at $49/month, targeting small businesses. Our unit economics are strong with a $150 CAC and $1,200 LTV.

Traction:Since launch, we’ve reached $50K MRR, acquired 300 paying customers, and achieved a 95% retention rate. Key partnerships with [Notable Clients/Partners].

Team:Led by [CEO Name], former head of product at [Successful Company], and [CTO Name], with over a decade of SaaS engineering experience.

Funding Ask:Raising $1.5M to fuel sales and marketing, expand product features, and grow our customer base to 1,000 within 12 months.