Let’s put it straight; you need “Money” to give any startup idea, a physical form! It is the resources that are going to lay down the foundation of your startup. But the real challenge lies in seeking fundings for acquiring resources. Specially when the idea is fresh new, it is difficult to convince people to invest in your startup. You may self-fund your business startup, but that doesn’t always work. This challenge of raising venture capital varies from startup to startup and has many macroeconomic factors playing the role. So, what are the effective ways in which you can get fundings for your app? Read this blog and find out the ways in which you can generate fundings for your startup app.
It is almost a pipe-dream for a startup to literally invest around $85,000 for building their first app without any fundings. And the lack of funds is a major reason why startups hold their thought back on developing an awesome, unique application
Firstly, you do not get an investor at first. Secondly, it is difficult to convince them about your idea of business and ask for funds. This results in project complications even before the idea is executed. So how will you get through this fundraising round?
We understand your pain and hence have tried to share our experience using which you can seek fundings for your startup. Our journey to success is interesting, and so are our pragmatic ways.
Well, you would have done your part of the research, but this blog shares some practical and effective tips to get fundings from potential investors and other sources. Find out more about the ways in which you can raise funds.
Before you jump into an investor and ask for money, you need to decide upon how much money you actually need for app development?
You can not make a random assumption about the fund figure you may need to uplift your business. This guessing many times lands you up in an underfunding situation. And this further leads to startup failure. Hence, divide the process of mobile app development into various stages like pre-launch needs, development needs, marketing needs, and post-launch needs.
Decide an estimated amount for each stage and then calculate the total. The figures are a rough estimate but are important to represent it to the potential investors. You may clarify that the precise figures will depend on the execution of the idea, the complexity, and the team you hire for development.
The objective of doing this is to determine the estimate of funds required and to secure it from the investors.
Also, you can have an idea about how much effort you will have to put behind this fundraising exercise. This exercise needs to be followed for all the scenarios, whether you are self-funding your business, asking it from family members, or pitching an investor.
The decision to get an “X” amount of money depends on a lot of factors. The potential investor may encounter you with a series of questions related to your business plan and your strategy. And the only thing you need to do, “Be Prepared, Be Presentable.”
So how will you confirm that you are prepared to approach the investor for app funding?
The first thing you have to do is,
Consolidate your unique idea:
With the competition rising at a burgeoning speed, you have to ensure that you have a unique idea for the startup. The startup app should have a clear purpose for distinctively solving human problems. Unless your app plans to solve a problem, like a real problem, you can not expect the investors to be excited about the idea.
You can do enough research and make yourself prepared for the journey ahead.
Make a business plan:
If you have experience of launching a successful startup in the past, it may become easy for you to convince the investors. But, if it is your first time, then you need to represent a full-proof plan along with your business expansion strategy. A persuasive business plan attracts many investors, and you are likely to get a big yes from them.
Build your clickable prototype or an MVP:
A prototype or a minimal viable product holds a better potential to describe your startup plan and the revenue generation. It gives the investors a chance to believe in you and your idea. A prototype or an MVP shows your dedication towards what you are planning to launch and can be your effective step for mobile app funding.
Prepare your elevator pitch:
An elevator pitch is the description of your idea or the concept in a compiled form. It should be short, informative, and grab the eyeballs within seconds. Using the elevator pitch, you can summarize your startup idea to the investors and get the required funding for an app idea. Long and aimless pitch is likely to bore the investor, and there is a maximum possibility that they may deny your business idea.
Wait till you find the right investor:
Not every prospective investor says yes to your idea, and in the same way, it is not necessary that you say yes to every investor deal. It is not imperative that every time you will listen to a yes, many times, you may get a No or other times; you may have to turn down the offer. Analyze the times when you are getting a No if it is more frequent than try to modify your strategy of raising funds for mobile application startup. Be more prepared when you plan to visit the investors.