Getting investors for your mobile app is difficult, but it is doable if you put the right strategies in place. This blog offers information on where to find investors for your application, how to understand app angel investors, and how to sell your idea to investors. We also look at how employing a premier mobile app development firm can help increase the odds of success. This guide will fit your needs, from finding a great idea to pitching and promoting your app and connecting to the right people.
Introduction
The market for mobile apps is booming, and there are too many people with innovative app ideas who don’t want to miss the opportunity to make something of it. But wait—is an idea enough? Well, No! You’ll require huge amounts of money to build a highly scalable and unique mobile app. Financial investment is needed at all stages of app development, including market research, product development, marketing activities, etc.
After all, funding your app should be easy. You have to find investors for your business. Before you pitch out your business to investors or your app concept. Then, you’ve done some preliminary research first. Investors should choose to invest in your idea if it seems to be revolutionary to them.
Why Are Investors Important for Your App To Succeed?
There’s more to launching a mobile app than a great idea. To develop, market, and scale, you need capital. That’s why investors for an app play an important role. Investors provide the necessary financial backing, and their support can help in multiple ways, including:
- Funding development and updates
- Expanding marketing reach
- Accessing valuable industry connections
- Getting strategic advice to improve your product
Investors are bringing in money and providing you with experience and deep insight.
Different Types of App Investors
1. App Angel Investors
These app angel investors are people who invest in startups in the very infancy of it. As a rule, they give funding for the equity or convertible debt. If your startup requires a springboard to launch its app, then angel investors are perfect. Venture capitalists typically invest big money but often put less of a stake than potential angels or early backers, who can play a crucial role in developing your app’s early stages.
2. Venture Capitalists
Venture capitalists (VCs) are usually on the scene when your app starts to grow and be scalable. But sometimes, they demand a significant equity in return, and they offer you more considerable sums of money. In contrast to the app angel investors, VCs are trying to find a great business model and a proven record of growth before investing in them.
3. Top Mobile App Development Company Partners
Another way to attract investors is to partner with a top mobile app development company. With these networks of potential investors, many of these companies can offer technical support. Credibility is necessary to make your app more appealing to investors. Additionally, a great app increases your odds of securing funding.
Yet other than the idea, if you present an MVP with just a few features, you can present them to help investors try and use your product as it is in real time. This will enable investors to understand that you are committed to your product; therefore, they can trust you more with their investments. You can also check out Shiv Technolabs for all the other information relating to app development.
How Can You Attract App Idea Investors?
1. Refine Your App Idea
It’s vital that before you even start approaching investors, your app idea is unique, scalable, and has a value proposition. Investors want to know how your app is solving a problem. How does it differentiate itself from competitors’ apps? The more refined your idea is, the more chances you can get funding from app idea investors.
2. Create a Solid Business Plan
Potential investors for your app can see your well-thought-out business plan. Which includes research about the market, revenue model, and growth strategy. Key components to include:
- Target audience, market research
- Competitor analysis
- Revenue streams (freemium, subscription, etc.)
- User acquisition marketing strategy
- Financial projections
3. Develop a Prototype or MVP
If you have created an MVP or at least a working prototype, it is more likely to attract investors. It’s proof that your idea isn’t a pipe dream; you have something concrete. Building a high-quality MVP will take a skill set. You need to hire a top mobile app development company to do that.
4. Perfect Your Pitch Deck
Convincing investors requires your pitch deck. It should include essential information such as:
- Problem and solution
- Market Opportunity
- Business model
- Go-to-market strategy
- Team and Financials
They’ll ask how much funding you need and what you will spend it on.
5. Network with the Right Investors
You must contact app angel investors or connect with a top mobile app development company that knows investors. You could also network around startup events, use platforms like AngelList, or organize and attend tech conferences. This will help you find potential investors for your app.
The Best Practices for Pitching to App Investors
1. Know Your Numbers
When pitching app idea to investors, be prepared to give them the details of your financials. Investors will want to see:
- Cost of acquisition (CAC)
- Lifetime value (LTV)
- Projected revenue growth
- How long your current funds will last?
- Know more about your burn rate
2. Demonstrate Market Potential
Apps targeting a large or fast-growing market are the most attractive to investors keen to fund them. Make sure to provide them with data to show the market size. Also, mention the demand in that sector. Demonstrate how the mobile app market is growing and how your app can make big bucks!
3. Showcase Your Team
Investors spend as much on ideas as on people. This shows your team’s skills and your investment in backing them. You can also mention their credibility and performance metrics. An all-around team increases the investor’s confidence.
Role of a Top Mobile App Development Company
Working with a top mobile app development company comes with many advantages besides their technical prowess. Yet, if you’re dealing with a reputable development company, you can almost guarantee that the developers will have pre-existing connections to investors. Secondly, their involvement transforms your app into something credible, and it’s more likely that app idea investors will invest in your app. On top of that, they can also help shape your app into a better quality, more attractive design and user experience for the users and the investors.
To learn more about the right app company, visit Shiv Technolabs. We can help you find the right app for your needs!
Finding the Right Angel Investors for Your App
1. Find Industry Specific Investors
The most important thing to do is to find app angel investors that work in your field. In addition to providing funding, these investors will also bring relevant advice and connections to the app market.
2. Use Investment Platforms
AngelList, Crunchbase, and SeedInvest are fantastic places to meet app angel investors. These platforms allow you to narrow your investors to individuals interested in your product, thus helping you find the perfect organization to work with.
How Much Funding is Needed for Your App Startup?
| Stage | Approx Funding (USD) | Details |
|---|---|---|
| Concept and Ideation | $5,000 – $15,000 | Costs related to market research, initial app idea validation, etc. |
| Prototype/MVP Development | $10,000 – $50,000 | Building a Minimum Viable Product (MVP) |
| Full App Development | $50,000 – $250,000 | Developing a fully functional app with complete features. |
| Marketing and Launch | $25,000 – $100,000 | Costs associated with marketing, user acquisition, app store optimization, and app launching. |
Conclusion
If you have a good app idea, a solid business plan, and a strong pitch, it still requires a strategic approach to attract investors. It is if you are contacting app angel investors or seeking a strategic partnership with a top mobile app development company. Therefore, you need to paint the picture for your app and what it will be like even in a saturated market. Following these steps will significantly improve your chances of securing enough investment for your app to be finished.
And finally, to make this happen, you can check out the Shiv Technolabs for more information.
Revolutionize Your Digital Presence with Our Mobile & Web Development Service. Trusted Expertise, Innovation, and Success Guaranteed.
