If you have an idea for a mobile app, you are probably excited to get started with it and you should be. Globally, the mobile app market generates about $60 billion in revenue every year, which means that mobile apps present a huge opportunity for new businesses.
Every entrepreneur is feeling that his app idea is unique and wishes to get funding for their mobile app startup.
But! But! But! it’s not easy to secure app funding to bring your app idea into reality. Many people believe that as long as they have a good idea and business plan, investors will kick down their door to invest. Alas! This is rare of the rarest case and those who find funding from any source, usually have to work extremely hard to do so.
“When Craig Brennan started fundraising for Newbe, he knew it would be tough but only first-hand experience unveiled the agonizing reality of raising around for his upcoming app.”
It is also true if your idea is as much unique that it hits the brain of the investor at the very first, then probably it could be the golden chance to get fund from the investor.
“In 2014, a very popular app was launched and do you know that App rises $1M in Funding for Simply Sending the Message ‘Yo’ Back And Forth.”
The app allows to message friends with the word “Yo” and that is it. Nothing else can be said other than sending this innocuous greeting.
And, it has just raised $1m in seed funding from CEO of Mobli, Moshe Hogeg’s angel fund. Yes, this is true; an app that simply sends a “Yo” notification to friends has managed to snoop $1m in cold hard cash out of an investor’s hands.
Finding someone to believe in your mobile app development idea as much as you do takes a tremendous level of convincing and a unique as well as the mind-blowing idea, and usually, there are many steps, an entrepreneur must take before approaching investors with their ideas.
A Basic Coverage to Startup Investing and App Funding:
In order to navigate in this brave world, let raise fund here…
Three Stages of Startup Funding
1. Pre-Seed Stage
At the Pre-seed stage, a great app idea with the mind that it will work more likely to get funded from the friends, family or angel investor.
2. Seed Funding
At the seed funding stage, investors invest capital in a startup company in exchange for an equity stake in the company in the form of securities offerings.
3. Series A, B, and C funding
As we move up to series A, B, and C, growth is the name of the game. Product-market fit should be a given by now, and investors will be looking for potential revenue growth at scale. Expansion plans and acquisition of smaller companies are common here.
What the Basic Steps to Propose Your App Idea In Front Of Investors & raise funds from them.
With a mind full of creativity and desires full of hopes, you should practice some basic steps to get funding from investors to develop your app either by your own or by hiring a mobile app development company.
Hone your elevator pitch before trying to communicate your app idea with investors.
How you are proposing your app idea in front of investors, matters a lot in engaging them towards your app. Hence, nail your app’s elevator pitch and you know what an elevator pitch is how you would describe your app to someone in the span of riding in an elevator with him or her. Sharpening it will help you to perform everything from writing an email to analyzing competitors market.
Research your app’s competitive landscape to find your “uncontested” market.
It is very important to understand the app’s competitive landscape to find an uncontested market because it will make your app more feature-rich among others and will attract investors to investing in your app because they will find it more money making.
Along with the focused research on competitor app’s feature, always try to include those that not even are app-focused.
Legitimize your business by having a real domain name and landing page.
Having actual domain, effective logo and a placeholder on landing page show you seriousness in your app. Now you must be thinking that will it help to get fund. Not exactly but it will help you to seem more legitimate. And, somewhere being legitimize can somewhere help in enhancing your presence in the market and get more eyes for your app.
Familiarize yourself according to Investor’s need
The best way to start conversations with investors is to get someone to make an intro for you. Just make a list of the investors whom you are targeting and during the pre-seed stage, and firstly focused on that companies and ventures who does not have that kind of app and how your app can multiply their revenue slot. You know that by doing this you will get fund along with the platform to launch your app. Just show investors a prototype the highlights the promise and value proposition of your app.
Practice until you can talk about your app to investors even without slides
Most of the entrepreneurs are now focus on their investor or pitch deck. Similar to this, your pitch deck should be tight. Show your investors the examples of successful investors who funded app startups and generated more capital throughout. This will encourage your target investors and help to make up their mind towards diving down in your proposal.
Covert every “No” into “Yes”
With every “NO”, you hear, think about and even ask what you can do better next time.
It’s very likely you will get “NO” more than “Yes”. Don’t get discouraged here. With every “NO” just find the reason for that answer and collect all the insights about what makes your app better, your mobile app idea better and your pitch better. By having this type of mindset, you would be able to figure out what the investors need and what the things that bound investors to invest in your idea.
If you want to dive into the world of mobile apps with an awesome app idea, and also you have a genius mobile app developer friend who is excellent in coding then also you need something that can convert your app idea into reality and that is “Investments”. Hence, pull your socks up and nail the target with the above-mentioned practices.
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