In today’s world, mobile apps are unquestionably a viable business idea. Simply browsing the app stores will reveal top-tier apps earning millions of dollars. The mobile app market is lucrative, and everyone with an innovative idea wants a piece of it.
Significant funds are required to build a highly scalable and unique mobile app. Financial investments are necessary for market research, product development, marketing activities, and other stages of app development.
However, getting funding for your app is a challenging task. As a result, you must find investors for your company. Many investors will fund your idea indefinitely if they see potential in it. Every great app idea, from Facebook to Uber to Airbnb, relied on the cash cushion provided by its investors until it reached profitability.
Today, we’ll look at how startups can find investors to help them bring their app ideas to life.
Table of Contents
How to Prepare Before Pitching an App Idea?
You will need to put significant effort into your app idea if you want investors to be interested. When pitching to investors, a simple app idea, no matter how revolutionary, lucrative, or disruptive it sounds, takes time to get the eye of investors.
They want to see the exact plan you have in mind to take your app idea from concept to profitability. They want to know that you have done market research to show how your product will compare to competitors or how it will succeed.
You should do a few things before pitching your idea to investors. If you can figure out all of this, you will have a better chance of getting investors to back your app idea. The following are the crucial steps involved in gaining the trust of investors and raising funds for your creative idea:
- Validate your idea
- Do market analysis
- Brand your app
- Create an elevator pitch
- Create MVP
Validate your Idea
It is challenging to have a good app idea. Begin by focusing on your area of interest or passion. Once you’ve come up with an intriguing app idea, the next step is to validate it to ensure its viability.
When you validate your app idea, you investigate the problem and how your app addresses it. Here are some things to consider when validating your idea.
- Choose the appropriate users and solicit feedback on your concept
- Examine the concept and make any necessary changes
- Examine the market for existing apps
After validating your app idea, enlist the assistance of a mobile app development company to create a minimum viable product to show investors a demo of your app.
Do market Analysis
It is critical to comprehend the market’s competitive landscape. You can acquire a sense of the market by researching the competitive environment. You must determine the target audience and market share size to give your potential mobile app stakeholders realistic data regarding the opportunities and risks that can arise.
You can learn about market trends, your target audience’s preferences, and competitor information by researching your mobile app. Finding out what cutting-edge features your rivals are providing to users and how you can keep ahead of them also helps.
Brand your App
Branding aids in bringing your app concept to life. Things appear hazy without it. It is simple to begin your branding process. You can start by designing a logo and purchasing a domain name.
Having a logo or a domain for your app shows investors that you are serious about your app idea and have given it thought.
The remaining stages of development will center on branding. Having all this branding material on hand will not only improve the presentation of your app idea but will also convey to app investors that you are seriously considering turning your app idea into a viable success.
Create an Elevator Pitch
An elevator pitch is a very brief synopsis, summary, or brief that provides a quick overview of your idea in a way that is engaging enough to pique the other person’s interest.
Since investors typically have less time, you should prepare an elevator pitch for your app idea before meeting with them. Your ability to capture the investor’s attention with an effective elevator pitch is crucial.
This pitch should cover the app’s aim, its essential components, and the precise way it addresses a problem customers are facing. You will have another opportunity to meet with the investor to give a full-fledged presentation on the specifics of the app once you are successful in making this pitch. The trick is to pique their curiosity without squandering their time.
Create MVP
Creating a demo or MVP of your app, similar to branding, gives investors something to visualize. Having an MVP demonstrates your commitment to making this app the next big thing.
The first version of a product with a basic set of features is known as the MVP. It is a quick and inexpensive way to help investors understand how your app works. Your app demo can be a flat mockup or something you’ve already launched.
Before approaching app startup investors, you can use an MVP to determine whether your app has the potential to succeed. An MVP has a lot of flexibility, and you can adjust until you get the best result.
Types of App Investors
Your app concept should be much more refined and presentable by this point. The term “investor” refers to anyone interested in supporting your app. They are investors because they make an investment and have a stake in your idea, whether they are family and friends or venture capitalists.
Not one but six types of investors can raise funds for you. Before we wrap up, let’s look at the different types of investors.
- Self-funding
- Co-founders
- App contests
- Crowdfunding
- Venture capitalists
- Friends and family
Conclusion
Most mobile app startups fail due to a lack of funding, as finding investors can be difficult. However, executing strategies on time will help you find the right investors for your product.
You must demonstrate your concept and be prepared to sell your app concept to market movers and shakers, as they only invest in the best ideas. Remember that app development is a continuous process, not a one-time event.
It is possible to improve at any time. The saying is appropriate for apps. Launch new features to make the app more engaging and to expand for better investment opportunities.
- How to Find Investors for your Mobile App Startups? - December 6, 2022