How to Find Investors for your Mobile App in 2022?
Find App Investors: In today’s world, mobile apps are specifically a viable business idea. You can browse through the app stores, and you will find a lot of top-tier apps which are earning plenty of dollars daily. You may also believe that your own app idea has what it has to make it to the top. But it is your idea that is sufficient to get the app investor? Not quite.
Taking an app idea from its own concept stage to the final level of launch and making that run as a business entity will cost a lot. But here, most entrepreneurs come up with a shortage of cash, so what is the next way to raise money? You know what? It is effortless by finding an investor for your app.
There are many investors available who can fund your idea of the app when they see its full potential. But to acquire the perfect kind of funding, you have to understand the right way to pitch up your ideas of the app to the investors. Here is a compiled guide to help you understand this properly.
- 0.1 Preparation stage before pitching your mobile app to investors
- 0.2 Analyze your app’s niche
- 0.3 Branding and visualizing your app idea
- 0.4 Creating a unique elevator pitch
- 0.5 Building a pitch deck
- 0.6 Building an app prototype or MVP
- 1 Types of Rounds of Funding to Raise Funds
- 2 Types of Funding to Opt for Mobile App Project
- 3 Top 3 Fundraising Apps to Raise Funds for Startup
- 4 What to do Next After Getting An App Investor
- 5 In Conclusion
Preparation stage before pitching your mobile app to investors
A simple idea is not enough when you pitch it to the investor, and even that sounds lucrative, revolutionary, or disruptive. You can even imagine that you are an investor, so would you agree to fund an app idea when the entrepreneur comes up without the necessary groundwork? Most probably not, and that is what exactly you need to understand.
A proper amount of work is required on end to ensure that your app idea looks to be worthy for the investors to work with you and your project. Most investors want to see by the preparation, groundwork in the end, and whether the idea can take it to success amongst the other competitors. You have to deliver them the same vision of your app idea from its initial stage right down to its profitability.
Once you figure out all these things, you will increase the chance of getting more investors for your app idea. Here is a prepared checklist to help you out in this process. Follow these things to accomplish in the preparation stage before pitching your app idea to the investors.
Analyze your app’s niche
There are millions of apps available in the market and which you can even download through browsers. Now in this modern world, there is an app to serve almost every single imaginable purpose. The app stores are flooded enough with lifestyle apps, gaming apps, personal wardrobe assistants, etc.
So when you believe that your app idea is unique, you have to make sure that no investor is ready to invest in a done-to-death app idea. Your responsibility is to research your app’s niche and check well about your competitors and their exact service. You should also check about the monetization strategies and the revenue of their growth over the years.
Branding and visualizing your app idea
The branding helps to offer life to your app idea without making things look vague. It is very simple to start your branding process. You can begin this process by creating a logo, building mockups for your dream app screen, purchasing a domain name, etc. Having all this together will not merely make your app idea more presentable, but it will also be efficient to the app investors that really you are sensing into making your app idea a viable success.
Without the process of branding, you cannot merely start your app development process with the best application development, as everything at that stage will revolve around how exactly you need to represent your app to the audience. Branding aids in visualization, so it makes it easy for the investors to understand how the app will appear as it is completed.
Creating a unique elevator pitch
It is very simple to understand an elevator pitch as a concise synopsis, brief, or summary that offers a rapid overview of your idea in a way that makes it engaging sufficient to pique the other individual’s interest. Generally, the investors don’t have a lot of time, so you want to have an elevator pitch for the app idea before you go and meet them. A perfect elevator pitch will instantly help you to get the investor’s initial attention.
The pitch should include all the essential and central parts of the app’s purpose, its work process, its core feature, and how it is solving the users’ issues. Only with success in this can you get another chance to meet the investor to provide it with a complete presentation on the app’s details. The main focus here is to get them engaged and interested without wasting their time.
Building a pitch deck
As the investor gets hooked on your mobile app idea by your elevator pitch, they will grant you a formal meeting to hear your idea out in full detail. To undergo this meeting, you need a pitch deck. If you don’t know about the pitch deck, you can consider it a short presentation. It is usually not more than 15 slides.
By this, you can get investors to understand what your business plan entails is. It can be made using any convenient software. The pitch decks should involve quite important visual information like branding collateral, audience segmentation graphs, relevant stats or figures, etc. Never make the mistake of reading off the pitch deck, as the investors can do that for themselves.
Building an app prototype or MVP
Having something tangible at the time of the pitch meeting will help your cause really, that is why you need to create either a minimum viable product or an app prototype. When you get an app prototype created for a meeting with the investors, it is adequate to simply show how much you have invested in the idea yourself and how serious you are towards it.
The app prototype offers the investors an interactive experience that allows them to get hands-on with your vision rather than hearing about it. It also helps you visualize how exactly everything you say translates into a complete product that functions clearly. You can also use design mockups, but they are not that interactive.
Types of Rounds of Funding to Raise Funds
Now, you have completely prepared yourself for pitching your app ideas to the investors, so it is time to meet them. It is not just one type as there are various rounds involved, and each of these funding rounds will provide multiple levels of meeting and funding with the numerous set of investors.
Pitching the perfect kind of investors who aims for investment goals suits the type of funding you need to depend entirely on you to understand the different funding levels. One of the best ways to understand this is envisioning it as a series of milestones you require to pass through as you walk up with the whole app idea.
It is not generally included among the rounds of funding as the earliest stage of funding a new company comes so early in the process. “Pre-seed” funding, this stage generally refers to the period in which a company’s founders are first getting their operations off the ground.
The most common “pre-seed” funders are the founders themselves, as well as close friends, supporters, and family. Depending upon the nature of the company and the initial costs set up with developing the business idea, this funding stage can happen very quickly or may take a long time.
It’s also likely that investors at this stage are not investing in exchange for equity in the company. In most cases, the investors in a pre-seed funding situation are the company founders themselves.
Seed Funding is the first official equity funding stage. It typically represents the first official money that a business venture or enterprise raises. Some companies never extend beyond seed funding into Series A rounds or beyond.
You can think of the “seed” funding as part of an analogy for planting a tree. This early financial support is ideally the “seed” that will help to grow the business. Given enough revenue and a successful business strategy, as well as the perseverance and dedication of investors, the company will hopefully eventually grow into a “tree.”
Seed funding helps a company to finance its first steps, including things like market research and product development. With seed funding, a company has assistance in determining what its final products will be and who its target demographic is. Seed funding is used to employ a founding team to complete these tasks. One of the most common types of investors participating in seed funding is a so-called “angel investor.”
Angel investors tend to appreciate riskier ventures (such as startups with little by way of a proven track record so far) and expect an equity stake in the company in exchange for their investment.
Series A Funding
Once a business has developed a track record (an established user base, consistent revenue figures, or some other key performance indicator), that company may opt for Series A funding to further optimize its user base and product offerings.
Opportunities may be taken to scale the product across different markets. In this round, it’s important to have a plan for developing a business model that will generate long-term profit.
Oftentimes, seed startups have great ideas that generate a substantial amount of enthusiastic users, but the company doesn’t know how it will monetize the business. In Series A funding, investors are not just looking for great ideas.
Rather, they are looking for companies with great ideas as well as a strong strategy for turning that idea into a successful, money-making business. The investors involved in the Series A round come from more traditional venture capital firms.
Well-known venture capital firms that participate in Series A funding include Sequoia Capital, Benchmark Capital, Greylock, and Accel Partners.
Series B Funding
Series B rounds are all about taking businesses to the next level, past the development stage. Investors help startups get thereby expanding market reach. Companies that have gone through seed and Series A funding rounds have already developed substantial user bases and have proven to investors that they are prepared for success on a larger scale.
Series B funding is used to grow the company so that it can meet these levels of demand. Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and employees costs a firm a few pennies.
The average estimated capital raised in a Series B round is $33 million. Series B appears similar to Series A in terms of the processes and key players. Series B is often led by many of the same characters as the earlier round, including a key anchor investor that helps to draw in other investors.
The difference with Series B is the addition of a new wave of other venture capital firms that specialize in later-stage investing.
Series C Funding
Businesses that make it to Series C funding sessions are already quite successful. These companies look for additional funding to help them develop new products. Also, expand into new markets, or even acquire other companies.
In Series C rounds, investors inject capital into the meat of successful businesses, to receive more than double. Series C funding is focused on scaling the company, growing as quickly and as successfully as possible.
One possible way to scale a company could be to acquire another company. Most commonly, a company will end its external equity funding with Series C.
However, some companies can go on to Series D and even Series E rounds of funding as well. For the most part, though, companies gaining up to hundreds of millions of dollars in funding through Series C rounds are prepared to continue to develop on a global scale.
Types of Funding to Opt for Mobile App Project
Now, your mobile app idea will be more presentable and refined. You will be aware of the different processes involved in funding rounds. You can stably move on to find the perfect kind of investors for your mobile app idea.
An investor can be any individual who is willing to finance the implementation of your app idea in varying degrees. You can also include anyone ranging from the people from your side like friends, family, etc., or professional investors. The investors should have a stake in it as they need to understand your mobile app idea’s scope.
Top 3 Fundraising Apps to Raise Funds for Startup
This platform offers fundraising, text-to-give, and peer-to-peer fundraising solutions for progressive nonprofits. Again, this platform is seriously free. The organization charges ZERO fees. They are funded by the Soros Foundation, the only costs are those that come from Credit Card processors. GiveLively allows organizations to collect donations from text (SMS) messages. So far, they’ve helped over 4,000 nonprofits raise money at $0 charge to their members.
Double Good fundraising, is a fast simple way to run a 4-day popcorn fundraiser through their very popular app. The app allows a nonprofit’s supporters to sell amazing popcorn to their friends and every purchase goes to the nonprofit.
One Today by Google
One Today by Google is a fundraising app that shows the impact of just one daily donation of $1. For each donation, users receive photos, short stories, and explanations of how their dollars are affecting change globally.
What to do Next After Getting An App Investor
Before starting any startup, you need to plan exactly what they will do with that money. Let’s explore some areas where startups might spend their investment after getting an app investor.
- Hiring – this is the place where most of the startups spend their investment. Hiring is very crucial for any startup as it helps businesses to grow. With the growth of a company, more people will be required to handle different areas of a business. You might require specialists to handle certain tasks sometimes.
- Expanding – with more employees, there would be a need for a larger space to fit everyone. This would require moving to a new place or buying more desks in a working space.
- Manufacturing – few startups might need the investment to begin manufacturing the product. They might also need supplies to begin manufacturing the product so they will need to invest in it as well.
- Research and Development – many startups have to spend their investment on research and development. The research process may involve A/B testing, surveys, hiring people, etc. Development might involve developing a new set of code, developing a new technology, or changing an existing technology.
- Legal – for startups it’s important to ensure all legal documentation is done in the proper place. This is essential to spend some money to ensure the right legal work.
- Marketing – startups have to spend some money on their marketing.
Thus, you have seen the importance of investors and finding the best investors in all possible ways. Make sure to keep this in mind in your search for an investor for your app idea. Utilize this to have an efficient and successful outcome of your app idea with a perfect investor.