How to Pitch Your Idea to App Investors and Get Funded For Your Startup Idea?
How to Pitch Your Idea to App Investors and Get Funded For Your Startup Idea?
When you have an idea and you think that your idea can change people’s lives but you are stuck with the ideation only and don’t have enough capital investment to bring your idea into a reality. This is where the app investors come into play. Investors are always ready to invest in your startup idea and provide funding so that you get the initial traction with your targeted audience.
We know it takes a lot of brainstorming of thinking something unique that can bring change in the world but sooner or later you realize that your idea is not enough, you have to bring your idea into the market and test out your initial product with the targeted customers.
Did You Know? Insufficient funds are the major cause of any startup to failure at its early stages.
With your amazing idea, you need a proper business and marketing strategy and most importantly the app investment. If your app idea seems revolutionary to the app investors then surely they will invest in your app within a few minutes.
Before pitching your business idea or app concept we would suggest you go through this amazing guide on how you can do proper preliminary research and find the best-suited app investors for your startup idea.
Startup Failure
Startups are originated after every3 seconds, which results in 11,000 per hour. However, 90% of startups fail within a year.
Startup Break Down
Approx 90% of startups fail while reaching the second year due to lack of funds. Only 30% will survive till 10 years.
Startup Funding
Startup funds were raised by $16 billion in 2020, while in January 2021, $8 million in startups were funded globally in just a month.
Source: https://www.interestopedia.org/
Before getting into the types of investors we would urge you to first go through the initial idea stage startup building process:
Let’s Get Started!
Know Your Niche Idea
Today it is very difficult to generate new ideas in this competitive world. There are millions of apps that can solve any problem in one go. Therefore, app investors don’t want to fund the idea that is already solving the pain points of the customers. You need to come up with an idea that is unique in the market and not copied. Mobile app investors don’t want to invest in a general idea.
You need to prove to the investors that you have really come up with something that can change the lives of your customers. You need to have precise knowledge about “how your idea is unique?” or “ How it can solve the pain points of your targeted audiences?”. Apart from this the main important question that investors could ask is “How you will ensure that the money they are investing will multiply with the app’s success?”
Importance of Pitch Deck
A Pitch deck is the most important fundamental tool in raising the initial investment for your startup idea. Before finding app investors for your app it is very important to develop your pitch deck. A Pitch deck is simply your PowerPoint presentation that describes the idea and explains the business model. The basic tip of creating a pitch deck is its simplicity. The more simple your slides are the more effective they will be.
High-intensity summary guide, your product/service offering, and the problem you are solving are some of the key things you need to include in your pitch deck.
Developing Minimum Viable Product (MVP)
MVP is the minimum viable product or the initial product that has enough features in it so that it can be rolled out in the market and note the initial response from the targeted customers. If you are really serious about getting funded from the investors then MVP could act as the icing on the ice for you.
This gives an idea to the investors to test your product so that they become confident enough to fund your startup idea. A demo of your app can with many bugs and eros but something is always better than nothing. This will give you an edge in getting closer to raising good funding for your business idea.
As we can see now you are ready with your initial product and its pitch deck now it’s time to jump into the types of investors that you need to look for in your fundraising initial investment.
Let’s dig deep into the types of investors:
Personal Investors
Normally these types of investors are the very early investors that help you set up your business idea. These investors include your family members, and, friends. These investors can only help you with very limited resources. You don’t have to put any effort into documentation and all as your loved ones are easy to crack and convince.
Angel Investors
Angle investors are the investors who initially invest in small startups and entrepreneurs. You get these investments when your startup idea is still in the development stage. Therefore, getting funding from these mobile app investors is quite difficult to get. You have to be really confident and present a very strong argument on why they should invest in your startup idea.
Angel investors are mostly focused on the development of your startup idea and are more focused on the growth of the idea rather than profit. That is the reason sometimes they are also called “business angels”.
Venture Capitalist
Venture capital investors are the investors who offer huge capital to emerging businesses that are believed to have long-term potential growth. A VC put its own resources into a startup company in order to grow them and achieve high profits. In return, they would ask for some equity in the company’s share and get some authority in the company’s decisions.
If you are looking for a big chunk of money for your startup along with a continuous intake of experience then VC should be a good option for you.
Incubators and Accelerators
These are the platforms where you can get the initial resources and some sort of investment ranging from $10,000 to $120,000 as seed money to develop your idea and get good traction in the market with your target audiences. You need to hustle and work hard in order to get the whole benefits from the incubators and accelerators platforms.
Crowdfunding
In today’s online world, crowdfunding has become a major source of acquiring huge amounts of donations and crowdfunding investments. Crowdfunding has come a long way and generated some great positive results for startup groups. There are mainly three types of crowdfunding: investment funding, donation funding, and reward-based funding.
The first one is investment(equity) funding where startups and entrepreneurs raise money online by selling their equity, shares, revenue share, etc. This sounds similar to venture capital but a few exceptions in investment funding than venture capital funding. Entrepreneurs have total control over what they sell, what they offer, and what’s more, different terms of understanding. The investor’s occupation is genuinely straightforward: contribute and acquire a return for money invested.
The Second crowd-funding is donation funding, and it is pretty cut and brittle funding. Sites like GoFundMe permits their clients to uplift their money by solving personal issues that have come to the shell. However, donation funding is basically for social services like natural disasters, health treatments, and so on. The main aspect of this funding is that its donors don’t expect any praise or popularity from the indigent people for their contribution.
The third and last crowdfunding is reward-based funding. This type of crowdfunding is basically used by business persons, startups, or even filmmakers to uplift their funds for raising business perspectives and building efforts. In return, donors need the publicity of their brand or product or to have a name in the film industry. A site like Kickstarter and Indiegogo works under the shadow of reward-based funding.
Let’s move toward gaining the trust of investors for mobile app development:
Having just a pattern application thought won’t help as investors need to realize that you have truly thought about this thought. They need to see that you have broken down your competitors and your product can possibly prevail on the lookout.
Validate Your Idea for App Funding
It’s not worth approaching an investor only on the basis of just idea. It can be difficult to come up with a decent idea. If you have any idea then you have to get deep dive into the idea and find out the all pros and cons of the product in the future. Discover its relevant pain points for users and try to resolve them to compare with other competitors. Make sure that your idea is not copied from any other company’s idea.
Once you have a gripping app development idea, then your next is to validate your idea for the investment for app development. Make sure your idea will decent and unique because investors don’t want to fund on replicate ideas.
The Right UI Strategies
The mobile application is also about attracting users to the app other than the app idea, the transforming potential, and others.
Without the designing point, getting your application created will bring only an uncouth or planned application. This will additionally turn into the game changer in persuading app investors to the application or not.
It is important to make the course idea attractive and appealing enough for the app investors. Make sure that your app should be organized with the right set of everything its color combination, font size, and font family should be the same for all app content, the accurate space for everything, and so on.
The User’s Need
You should make certain of how you can enter the universe of mobile applications beating the top competitors and making a place in the smartphone of the users. Doing this is certainly not a simple task.
They lure app investors for your idea and let them invest their money in it. It is very crucial to know how your app idea is capable of solving the everyday problems of the users.
When you meet the investors for the first time, be confident to tell them about the app information. Let them be sure confident that how your app idea is great for the society and that it gives effective results in the end.
The Market Research
You can take the following action until and except if you are not very much aware of the market. The market is the main thrust and furthermore an innovator for everything without exception. In this way, while ready to lure app investors, you should be certain that you are finished with the statistical surveying completely.
Your application ought to be a consequence of top to bottom market investigation and exploration. The application ought to have all that a market will see. Continuously recall that there are as of now a large number of applications accessible on the lookout and the new ones to leave an imprint in the market need to put forth a lot of attempts and exploration.
Thus, never leave market research at the corner before ahead with the overall process for app development, prototyping, and attracting app investors.
Competitor Analysis
Your competitor is also your biggest inspiration too. No matter how much your app idea should be beneficial or welfare for society or the world, make sure that your idea should not exactly be copied from what other competitors are already serving.
Research the competitor’s app and analyze what points they missed on their app and how you can take leverage the missing points from the competitor’s apps. Try to come up with solutions for the missing points by the competitors.
When finished with it, during the period of attracting the users, you can basically guarantee that your application isn’t the higher rendition of the prior application, as a matter of fact, it is the better and more powerful variant of a groundbreaking thought. App investors could put resources into your application by understanding how you can make mass progress on the lookout.
App Speed
There are many issues that made users abandon the app. The company of many reasons, and app speed is one of the main reasons that encourages users to uninstall the app and release words to others to put negative reviews and feedback.
It is great for you to pay attention to the app’s speed. Ensure that your app loading speed for every page is not more than 2 seconds in any case. Sometimes it happens due to any technical fault try to inform the users about the fault.
While you paying attention to the app’s speed, you can always attract users and investors to invest money in your app.
What are the stages of mobile app funding?
Pre-seed Funding
It is initial stage funding that will be funded by your family and friends or by your own money. Because at this stage your app is just an inflated idea and nothing considerable has been done yet. Funds raised in this stage are regularly used to make an establishing group, demos, or MVP, direct exploration and gathering information, and build up some decent forward movement.
Seed Stage
At this stage your mobile app is not fully functioning, you trying to improve the working and resolve the bugs. At this stage, you will get more focus on the initial stage of your business growth. You’re searching for investors to fund further exploration, start testing the product market fit, and recruit a workforce. At this stage, commonly private supporters, beginning-phase venture capitalists, and startup incubators answer.
Series A
When you reached this stage, you have a higher chance of getting rapid success for your product. Right now, you’ve laid out the market-item similarity and have obviously characterized the target of your product. You begin to focus on your business and product development. Your primary spotlight ought to be on streamlining your business, and the attractiveness, and versatility of your mobile application. At this stage, funding firms, “super” private supporters, and family workplaces are the standard Series-A investors.
Series B, C, D, etc.
According to Wikipedia, Making it to series B and after means, your product has acquired acknowledgment from users. This stage centers around improving and adding new features to your product to attract users. Your brand has a reputation and individuals know about your services. Now you have to take your app from a mobile app startup funding stage to a mid-size business. Funds raised at this stage are utilized for business acquisitions, opening up to the world, associations, redesigning marking levels, and drawing in new business sectors with steady product advancement and upgradation.
Conclusion
Most mobile app startups break down due to a deficiency of funds, or sometimes it is very challenging to find an app investor. Thus, following the right way and timely executing the features will make you find the right app investor for your app. You are that much capable of proving your concept to the market movers because they can only invest their funds in strong ideas.
