Startup companies seem like they’re forming everywhere these days. Statistics show that 40% of working people would be willing to leave their jobs if they could raise funds to turn their great moneymaking idea into a reality. Well, it will take more than an idea for someone to loan you that kind of money. You will need to know how to execute it. If you are ready to learn how to get investors for an app, continue reading
Execution is everything
Mobile apps are the newest trend in startups. There are so many startup entrepreneurs who think they have the most original mobile app idea yet. They just wish they could raise funds to pursue its development. But a majority of them have no idea of how to get investors for an app to raise funds. As well they forget the fact that the end users have no knowledge of their startup app idea. They just care about the final product, iOS or Android mobile application, and how it will benefit them.
Some factors will prevent mobile app startups from ever reaching their full potential. For instance, if you have just a mere app idea, you will never get funding from investors. There is a lot of work that goes into turning a great idea into something that will be a popular product. You need to build a mobile application that is worth paying for.
Being a startup entrepreneur in the field of mobile apps is both exciting and risky. There is no set formula for how to be successful in this field of business as a startup. Nevertheless, there are some great strategies which can increase your chances of raising funds for your startup app idea
Situations that occur with startup mobile apps.
Investors are given ideas and not experiments.
If you only have an idea for your mobile application and you have not created any prototypes, there is very little you can predict at this point. Investors receive thousands of working models from startup entrepreneurs. If you are only approaching investors with ideas, they don’t care. They want to see what that app idea looks like in real life. So it’s good to create MVP app that you can show investors or at least some prototype. It will raise your chances of getting funds for your app 10 times minimum
It is always possible that some variation of your mobile app idea has already been developed by another person or company. It may have a few differences or developed for the different platform. But nothing that will make your app stand out separately. You must have unique interactive features in your app to make it look different than all the other apps out there.
The Pitch is Everything
When you approach an investor about your idea to raise funds for your mobile application, the amount of time that you will normally have available to pitch it will be between 15 and 20 minutes. You need to manage your time wisely during the pitch and be able to encourage investors within the given timeframe. And again, if you have an MVP app that you can show during the pitch your chances of getting funding for your app raise really high.
Understand the Basics of Investing
Now that you are a startup entrepreneur, you should learn the investment terminology. This will make you look like a smart startup owner. Otherwise, you will not seem too impressive to investors. Not a good strategy if you want to raise funds.
A Co-founder is Necessary
If you get a co-founder, they will share the burden of the startup app costs and risks with you. They may even be technically gifted which means they can handle more of the technical aspects of the mobile app business. For example communication with mobile development agency.
Be Nice When You Say “No”
“No” is a word that will be heard a lot as you try to raise funds for your startup mobile app. Either the investor will say “no” if they don’t like your app idea or you will say “no” if you don’t like their offer or terms. Regardless of who says the word “no,” it should always be said in a polite and comfortable manner. The disagreements usually have to do with money, such as when you get it, how much you get, and where you get it.
Have an Attack Plan Ready
You need to have a vision for the mobile app and then execute that vision by building an MVP app. This model will show all the problems of the app which you have to improve. You also need to have an app monetization model and understand the mobile app market opportunity, growth rate, trend, and competition.
Use Resources to Find an Investment Source
It can be difficult to get investors for an app. But there are certain resources available to help you with this. You may not become as rich and successful as other tech entrepreneurs like Mark Zuckerberg or Jeff Weiner, but you can still make your app successful too with some hard work and determination.
Ways to raise funds for your startup mobile app.
Angel Funding. Despite the importance of developing an idea into a prototype, angel investors are willing to invest money into mobile apps which only have an idea for a product. If they like the idea, you will get funding to develop the idea into a mobile application. This is a harder type of funding to get. You would need a truly great idea for your startup app to have success here.
Bootstrapping. When it comes to bootstrapping in order to raise funds for your startup app idea, it means you are using other sources of money from investments, job income, other business ventures, and savings.
Saving. You might have a certain amount of money saved right now, but you should aim to save 50% more of your total savings. This will help you make enhances to your mobile app or release an upgraded version of it.
App Contests. Business incubators like to run app contests. The prizes of these contests usually offer funding for a contestant’s app idea. If you can provide a good presentation about your startup app idea and then show off your skills, then you have good chances to get funding for your app
Your Own Social Network. You can request a loan from friends, family members, colleagues, coworkers, and/or partners. Have a business plan ready to show them. This way they can see what you’re planning to do with the mobile app.
Loans. If you have complete confidence in your startup mobile app, then there is no risk that you are taking. But when it comes to satisfying potential lenders, you need a high-quality business plan ready which you can show them. This plan must outline the revenue projects, market research, mission statement, app monetization model and so on. If you can prove that your business mobile app will create a positive change, then it will be easier to get approved for a small business loan by a bank.
Credit Cards. Finally, credit cards are an emergency source of funding your startup app if you really need them. This can become quite expensive with all the interest charges, but it is an easy and fast way to get your mobile app startup started. As you improve on it and develop prototypes, you can raise funds for startup app from other sources to complete the app.
Now Just Tweak the App
If you have made it to this point, you have a scalable app that is well funded. Do not lose focus on your objective, though. You need to build an MVP app and allow it to gain traction. Then you can get additional funding to turn that Minimum Viable Product into the app of your dreams.
When you have users test your MVP app, ask them to give you feedback on the experience of using it. This is how you will be able to improve on the app until it is just the way you want it to be.
If you want to create an MVP app that will have high chances to attract investors contact us!
App development services we provide.