What Is a Pitchbook?
A pitchbook is a sales document created by an investment bank or firm that details the main attributes of the firm, which is then used by the firm's sales force to help sell products and services and generate new clients. Pitchbooks are helpful guides for the sales force to remember important benefits and to provide visual aids when presenting to clients.
Key Takeaways
- A pitchbook is sort of field guide used by a firm's sales force to make clear key points and to remember important benefits
- These often also provide handy visual aids when pitching to prospective clients.
- The main pitchbook contains an overview and main attributes of the selling firm.
- Product pitchbooks contain details about a specific product or deal.
How a Pitchbook Works
There are two main types of pitchbooks. There is the main pitchbook, which contains allthe main attributes of the firm, and one that contains details about a specific deal, such as a company's initial public offering (IPO) or investment product.
The main pitchbook provides a general overview of the firm. For an investment bank, it would show information such as the number of analysts, its prior IPO success and the number of deals it completes per year. For an investment firm, it would featureinformation such as the financial strength of the company, and the many resources and services available for its clients.
If the pitchbook is being used by a team or individual financial adviser, there could be biographical information as well. All the details displayed in the pitchbook are points that the sales team should focus on when selling the benefits of the firm to potential clients.
For start-up companies, a pitchbook is more commonly known as a pitch deck.
Types of Pitch Books
For an investment bank, a pitchbook focuses on all the benefits of the issue, helping brokers and investment bankers demonstrate how the firm can serve the specific needs of their potential clients. It would have more detailed information about how the potential IPO process could playout for the potential client. It would also show comparable IPOs within the same industry that the investment bank has had success with in the past.
For an investment firm, the pitchbook would be more product-oriented. It could show the track record of an investment portfolio, using charts and comparisons to an appropriate benchmark. If the investment strategy is more advanced, it would display the method of selecting stocks and other informational data that would help the potential client understand the strategy.
Example of a Pitchbook
In 2011, the company Autonomy was the acquisition target of several larger competitors. Hewlett Packard and Oracle were interested, but HP eventually became the victor and acquired the software infrastructure company. Oracle decided to post an IPO pitchbook, which was developed by the firm Qatalyst Partners, on its website.
In the pitchbook, Qatalyst shows examples of how Oracle would benefit from acquiring Autonomy, showing it would increase its competitive advantage in areas where Oracle had no footing. It also showed the key financial metrics of the company and how it had both positive revenue and margin growth. The book also featured the partners and customers that Oracle would immediately acquire once it purchased the company. It also went into detail about Autonomy's management team and directors.
FAQs
There are two main types of pitchbooks. There is the main pitchbook, which contains all the main attributes of the firm, and one that contains details about a specific deal, such as a company's initial public offering (IPO) or investment product. The main pitchbook provides a general overview of the firm.
How does a PitchBook work? ›
General Pitch Book
This document offers an overview of your company. It should include all relevant financial information such as profits, deals, key executives, company size, competition, and history. Investors will also want to see a list of current and potential clients and the nature of your business relationships.
What is the PitchBook process? ›
PitchBook collects data through a five-step process: gather, organize, calculate, vet, communicate.
What is the structure of a PitchBook? ›
Pitch books typically contain sections on the merits of the transaction; analysis of potential buyers or sellers; pricing and valuation information; as well as key risks to mitigate.
Is PitchBook one or two words? ›
A pitch book, also called a Confidential Information Memorandum, is a marketing presentation (information layout) used by investment banks, entrepreneurs, corporate finance firms, business brokers and other M&A intermediaries advising on the sale or disposal of the shares or assets of a business.
What is the function of PitchBook? ›
The purpose of a pitchbook is to secure a deal with the potential clients. It provides an overview of the firm, including historical information, financial strength, and services available to potential clients.
What is pitch and how does it work? ›
Pitch describes how high or low a sound is. Pitch depends on how fast or slow an object is vibrating. Sounds can have different pitches, frequencies, wavelengths, and amplitude so they sound different to our ears.
What is PitchBook software used for? ›
Pitchbook features real time data to research and analyze private and public companies, startup trends, private equity & venture capital financing deals, VC and PE investment funds, investors, and service providers across the entire private investment lifecycle.
What does PitchBook data do? ›
PitchBook is a database that provides data, research and technology covering private capital markets, including venture capital, private equity and M&A transactions.
Why do people use PitchBook? ›
PitchBook provides built-in tools such as pivot tables, benchmarks, chart builders and direct download options (Excel, PDF, PNG, PPT) to ensure our clients can quickly gain and share actionable insight from our comprehensive datasets.
What are the top industries that use Pitchbook? Top industries that use Pitchbook for market-research are Wealth Management (102), Asset Management (91), Investment Banking (65).
How do you make a good PitchBook? ›
Here are six steps to create a pitch book:
- Introduce the firm. You can start by introducing the firm you work for to potential clients. ...
- Offer some context information. ...
- Define the client's situation. ...
- Provide a solution for them. ...
- Include benefits of the partnership. ...
- Create a presentation.
The fund type must be angel, co-investment, debt, fund-of-funds, other, PE, real assets, real estate, secondaries and VC. Each fund must have an associated investor.
What is the meaning of PitchBook? ›
A pitchbook is sort of field guide used by a firm's sales force to make clear key points and to remember important benefits. These often also provide handy visual aids when pitching to prospective clients. The main pitchbook contains an overview and main attributes of the selling firm.
What type of company is PitchBook? ›
PitchBook is a research firm and financial data provider that serves investors worldwide by providing access to robust insights on the global capital markets.
How many users does PitchBook have? ›
Since its founding in 2009, PitchBook has become a leader in the financial data industry by building a comprehensive database of venture capital and private equity data. Today, PitchBook is 100% owned by Morningstar and, as of 12/31/2023, it had 108K users on its platform, generating $552 million in annual revenue.
How much does a PitchBook cost per year? ›
How much does PitchBook cost? An annual PitchBook license costs $25,000 for three users and $7,000 per user for additional seats.
How does a pitch presentation work? ›
A pitch deck is a presentation created to raise venture capital for your business. In order to gain buy-in and drum up financial support from potential investors, these presentations outline everything from why your business exists, to your business model, progress or milestones, your team, and a call-to-action.
How does a pitch meeting work? ›
The Pitch Meeting Happens In Five Stages. In Stage 1, you build rapport and warm up the room. In Stage 2, you ask questions and listen to show respect. In Stage 3, you deliver the prepared component of your pitch.
Why is PitchBook so expensive? ›
It is a reflection of the comprehensive data, research, and insights that PitchBook offers, especially in the realm of global capital markets. The costs incurred are directly related to the user needs, with different pricing points established for various business sizes and requirements.
