When the app idea is in its infancy, the only question that haunts wannabe entrepreneurs is, “How do I get investors for my mobile app idea?”. No app idea can turn into fruition without having investors on-board. The overwhelming growth rate (20%) of the mobile application industry gives optimistic hope to entrepreneurs.
Every business person wants their burning idea to find a place in the market, but how? Well, it’s a sure shot deal that if you have enough investors & funding to support your app idea, there is nothing that can stop you from achieving success.
However, the grapple is to find mobile app investors who believe in your app idea and are willing to fund it. There are techniques to prep yourself and make your app idea fund-magnetic. Our motive in writing this blog is, you should not sound like a rookie app developer when you represent the idea in front of investors. In this article, we will be putting together things that will make you ready for pitching your app idea to potential investors.
Note to self: You will need funding from investors for three main reasons:
To build your app idea.
To market your app idea.
To maintain the app services.
It is possible that you partially sponsor the app development. In that case, you should think over the above factors and figure out an estimated figure of required mobile application funding. If you miss upon this, in the future, you might go back to square one and incur a loss.
Who can be your potential investor?
Your potential investor can be anyone from your immediate family or friends. You can also choose outside investors such as angel investors, Or, go for crowdfunding, Or search for a private investor.
Whichever option you choose to get investors for your application, you need to work hard to convince them with your app idea.
Coming to the main topic
What preparations do you need to make before presenting your app to investors?
Establish your niche :
In 2021, mobile applications have become the most go-to source for finding a solution. There are millions and trillions of apps available for almost anything to everything. The playground is huge, but so is the competition. Hence, it would be best if you started with the groundwork of doing research about the industry market and running trends.
You need to double-check the number of competitors that exist and how they serve the customers. Investors are not interested in a repetitive app idea that doesn’t solve a problem uniquely.
You have to figure out how you can solve a real-life problem with the features and why the market needs a solution of your app type. This is the best method to convince investors in a way to fund your mobile application. Thorough research will take you a long way long way and help you smoothly attract investors.
Work on branding your app :
The app idea is incomplete without giving an identity to it. You can define the identity in the form of a logo design or a domain name. The efforts you put into defining your brand at an early stage convince the investors that you are dedicated to the app idea.
By doing this, you do not look vague in front of investors; instead, you look like one with a clear app vision. Branding will lay the foundation and give you a headstart to work steadfastly towards your app.
This is another answer to the question, “how to get investors to invest in your app idea?”
Figure out the funding type :
The mobile app design and development process aren’t easy. You never know when you might face a setback and need some extra funds to solve an issue. Hence, you have to be specific about the stages when you need investments. You can ask for more funding as you move forward with the seeding and pre-seed round.
Make a list of potential investors :
Not every investor will be interested in your app idea. Therefore, instead of wasting time and resources in pitching your idea to the wrong investors, do enough research and make a list of interested investors to pitch your app idea.
You should perform enough study about investors before spilling the beans in front of uninvolved investors.
Prep up your elevator pitch :
The task of finding investors for your mobile application is all about pitching and convincing the investor. The way you hook the investors in those 30 seconds timeframes is the way to grab their attention.
You need to highlight the application idea’s potential and put forward the best deal. Designing, branding, developing, marketing is everything that you have to explain in your elevator pitch. Don’t take it otherwise, but your elevator pitch should be crisp and concise that can seal the deal the moment investors hear about it.
The reason why an elevator pitch is so important is that it shows how staunchly you want to launch the app into the market.
Back up your pitch :
Those 30 seconds elevator pitch can grab you the next meeting date, but you need to be ready with all the things that behold the app idea. You should go above and beyond to collect all important data points that can help you in convincing the investor.
You need to define more specific information in the form of a PowerPoint or slideshow presentation that can sound as well as look persuasive. The pitch deck should include the application’s exactness and features that would turn the tables.
It should come in handy and portable so that investors can keep one with themselves if they wish to move forward with your app idea. Here is an excellent example of Uber’s pitch deck.
Develop a Minimal Viable Product (MVP) :
One of the important steps that follow app prototyping and the mobile app design process is MVP development. An MVP gives investors a chance to visualize the app idea and explore the application’s interactive features.
On your end, a demo will give you the highlight of any potential risk involved with the process. You can figure out bugs at an early stage and release a glitch-free product in the end.
We, at Kody Technolab, firmly believe in developing an MVP before anything else.
Well, here is all about the ways you need to prepare yourself for funding. No matter how confident you are with your app idea, you need to practice your elevator pitch. You should not fumble or sound confused when you are representing your burning app idea.
If you lack knowledge about various funding rounds or want to brush it up, we have covered you all. In the next section, we will be describing various rounds of stages of funding in brief.
What are the various stages of fundings?
It is required for you to know various structuring and rounds of app funding. All these funding rounds progress in order, and it is important for you to understand each round that you will face.
Pre-seed round :
The pre-seed round is the initial stage of funding. In this round, there is actually no materialization of money. It is still just your infant idea and you acquire funding from your family or friends. You can probably choose to fund your own app idea and wish to move forward with the mobile app idea.
Seed round :
This is where your actual funding process begins. Your search for initial startup capital for performing tasks like market research, market-fit, hiring needs, and initial development stages begin at this stage. In this stage, you are likely to find angel investors, early-stage capital investors, and incubators. The app idea is still at risk, and investors can be confused about whether to invest in your app idea or not.
Series A :
As you move forward confidently with your app idea, the next stage is to opt for series A funding. At this stage, you have a proof of concept and a clear app concept in mind. You can focus on app progress and easily grab investments between $2million and $15 million.
Series A investors can be venture capitalists, angel investors, or family.
Series B, C :
With the consecutive funding rounds, you can start asking for more funding from your investors. From series B, you can actually grab around $25M of funds.
What is the next step after receiving enough funding for your application?
The next stage is to capsize your project idea. Approach a reliable app development company, and continue with the journey forward. As you move ahead with the development, you will realize what series of funding do you need next.
Kody Technolab can serve as your reliable development partner and our solution can help you achieve new heights of success. You can go through our portfolio and find out how uniquely we have provided various app solutions.