In this world In terms of investing, a “party round” is an investment round – usually an angel round – where a large number of angels throw (them) pocket change and help get the company off the ground. “Pocket change” is relative; Pocket change for a very high net worth person could mean a down payment on a house for you and an annual salary for me.
About a year ago, Alex Party Round has reportedly raised $7 million using its own platform, adding a busload of mid-sized angel investors to its cap table. In general, party rounds are more about who you know (and who they’re willing to bring to the table) than anything else, but having a good story and narrative is still key.
The Party Round team is willing to share its deck with me, so let’s take a closer look at what the founding team did to shake the trees enough to raise $7 million to make Apples surrender to gravity.
We’re looking for more unique pitch decks to tear down, so if you’d like to submit your own, here’s how you can do it.
Slides in this deck
Party Round’s 10-slide deck is one of the tightest decks I’ve ever seen. It shares its full deck with no modifications or amendments. nice
- Cover slide
- Slogan Slide
- Solution Slide
- Value prop slide
- Product slide
- Competitive advantages slide
- “Why now?’ Slide
- Mission Slide
- Team slide
- Closing the slide
Three things to love
The party round gets a lot of things in its deck. I love design and I love the lack of words. Hell, the whole deck has only 148 words. It was… nothing. The company raised $7 million with 148 words. That’s $47,000 per word. These pitch deck teardowns are usually 2,200 words long, and I haven’t checked my pay stub in a hot minute, but I’m pretty sure Technology Flow isn’t paying me $100 million per article. Then again, I’m not exactly known for my brevity.
So, besides crisp and to the point, what else is perfect for the party round?
It knows what it’s doing. It knows for whom it does it.
There is something refreshing about a company that knows what it does, who it does it for, and what its value proposition is; And here’s it all, succinctly and simply on a slide. There is beauty and clarity here, and there is … not much to say really! Every entrepreneur I’ve talked to wishes they had this level of overview and vision.
Tap, tap, boom.
In slides 4 and 5, the company explains the process for founders and investors. It’s just as easy – if not easier – than creating a crowdfunding campaign. For founders, you create the round and configure the security terms, you invite your investors and Bob, your mother’s brother. For investors, you open the invitation. If you invest, you type in how much you want to invest, you sign the investment notes and wire the money. It sounds so easy!
Excellent market opportunity!
Investors rarely invest in a single data point and ask, “Why now?” A company is crucial. The company rightly points out that it captures an era. It also did so with remarkable restraint; No mention of NFTs in sight.
Retail investing has become huge through the gamified world of Robinhood, and Coinbase has put crypto investing within reach even for people who don’t want to spend time memorizing what a digital wallet is and how many words you need to create one. one
I’m not 100% excited with this deck. In fact, honestly, I really struggle to understand how this company managed to raise any money at all, let alone raise $7 million. In the rest of this teardown, we’ll take a look at three things that could improve or differentiate the party round, along with its full pitch deck.