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Have an app idea? Thinking about funding? Here’s what you need to know

Have an app idea? Thinking about funding? Here’s what you need to know

Question 1. Who will invest in my mobile app idea?

You are in a competitive marketing space where every day there are thousands of applications deployed on the app stores. So, before you promise anything on the numbers, without confidence or overconfidence about your idea, study the facts and investments of goliaths like Uber.

There are two kinds of possibilities you’ll need to consider when it comes to vision, ideas, and potential investors to make a deal.

  • Your idea has the power to draw the investors towards the product

Uber had a unique app development concept at the stage that an individual can book a ride through his smartphone and avoid hailing a ride and mistakes with the wave of his hand. This attracted Silicon Valley to invest cash and resources in Uber by summer 2015, with the fact of total funding of 10 billion dollars. Other app investors that contributed to the deal’s funding for an app were Fidelity Investments, Jeff Bezos of Amazon, Goldman Sachs, Blackrock, Lone Pine Capital, hedge funds as well as private billionaires in fields.

  • You go and sell your idea to the investors with utmost faith in your thinking

Spotify app, the revolution in the music streaming industry is a freemium model that earns money through advertisements and app fundings. But it is still not able to lure venture capitalists (VCs) like Google Ventures because of its biggest competition Apple music (iOS). It is still struggling with its idea and investors’ approach but is stable with the buzz revenue of hundreds of tens of thousands of millions in the form of advertising royalty.

So, you must understand that your mobile apps have to have a backup in the form of such freemium models and things that can churn some revenue and keep yourself moving till you get big investments for your app development.

Both of these tactics will bring you, investors, sooner or later with apt funding for your app. But, the crust of this is your “app idea.” Prepare a modular structure choice with all the possibilities of profit-making and growth with or without the investment from the fundraiser, so that you have all the roads that will take you towards the online app fundings success of your business.

Question 2. Why should one be interested in funding my online business app?

In this era, everything is about finance and financial stability. There is no barter system running in the economy that balances out the business equations. It is a vicious cycle, wherein a company or person needs a ton of money to get customers but it also needs customers to get money.

When you decide upon a mobile application idea, then there comes a decision that needs to figure out the sectors or people who might get influenced by the business idea for app fundings. Let’s go step by step with your app idea that will help in knowing the interested angel investors and venture capitalists.

Step 1. Know Your App’s Niche

No investor will get you app fundings with an existing idea. Make sure you study your competitors and marketplace to stay in a free of risks environment. Be sure about your offerings, in-app features, UI/UX design and tools. There should be a kind of connection to lure the investors. Ask a question to yourself like which problem and error is solved by my app? What is the unique selling point (USP) of my app? How is my app different from the others in this service genre?

These are the generalized number of questions asked by many investors and will help you analyze your own thinking for a while. Work on your specifics because investors are not looking for haywire answers. Before getting app fundings, you should know your targeted consumers, what features your app includes, and other small details of your app. So, narrow down your app idea to turn into reality and earn the investor’s assurance and trust in the funded apps rounds service making relationships smooth.

Step 2. Branding the App

Branding makes your app realistic. No founders or CEOs will rely only on average words and the place timeline version, so you must create your logo, online domain, and start some online activities. Investors are not your colleagues and friends and family who will hear you blabber the idea and appreciate it. They want proof and an up-and-running plan of action of your mobile app startup.

If you want to pitch venture capitalists for app fundings, this is a great way or you can say a tool. Make a mockup of the website or app – so that things become easy for the investors, users or for someone who has the potential to visualize your idea, place, understand the minute features and functionalities and eventually help them to put hands-on trust with the consent.

Step 3. Work on Your Elevator Pitch

A vision of startup funding for your app and software is critical, so you are supposed to prepare a quick brief about your app idea. Investors do not have a whole day to listen to your plan. Prepare a short speech of something less than a minute summing up your whole idea for projects. App fundings pitch should consist of the crux, punch line, problem and limitations elimination, key feature integration, and a vague plan of future goals.

As examples, imagine an interviewer asking the question in order to describe yourself in three words, you will respond to this as accurately as possible. Same goes with your app size and software, so prepare a gist about things as an “elevator pitch” and get your investors hooked up to it.

If you are not able to precisely state the nature of your app project then you must go back and do proper research on it for app fundings. Elevator pitch is a small speech that helps you to reach the angel investors list for projects. If you are on that list, the networks of angels are interested in knowing about you and your app products.

Step 4. Prepare a Pitch Deck

After your elevator pitch gets selected and is on the list, you need nothing but to start prepping up for a pitch deck. This is similar to a PowerPoint presentation or a slideshow representing some more key factors about your great idea and market research done precisely for mobile app fundings. You are not supposed to put the exact script that you’ll probably use for further meetings with investors.

This is an ideal chance for you to show some graphs, statistics, and make your online business more viable for investors. They can also have an in-person discussion with you after looking at your presentation which will make it more interactive for both.

Step 5. Create an MVP

If you do not want your apps for funding to fail miserably, it is very much necessary for you to make a minimum viable product (MVP) or prototype before launching it full-fledged in the market as well as approaching any angel investors. It will help you in savings of sources and visually help early adopters and users understand the working flow of the mobile app.

Moreover, it lets you find a road where there are glitches in the early stage of apps in the online world to take you to the next level. How to get funding for your app idea? To get funding for app development and further partnerships and mentorship with the venture capital firms, MVP always helps in bringing out the best your mobile app has ever had.

Question 3. How much money will I actually need to make my app successful?

This is a burning question before starting any of the above tactics. How much will you quote for your app? For anything that starts with an app funding process to go smoothly, you need to have an approximate idea of the app's funding amount you want to meet for the future expansion of your application level.

If you fund your app with more money, then you are likely to give away your venture capital firms to the investor. And if you quote less amount you will not be able to achieve your goals and will not even be able to bear expenses.

You have to work hard and figure out the estimated cost of developing a mobile app with specific functionalities and user-friendly navigation. Your app end funding goal is to justify the approximate amount in front of the investor.

You can also ask yourself a question range like,

  • How much money will I require to create an app or software?
  • How much money will I want to lure the majority of the audience and talent acquisition?
  • How much money will I want to maintain the mobile app once it is deployed on the app store?

These will push you towards making a couple of decisions for a mobile app development agency and know the exact job costing of iterations in industries. As we know, the maximum app fundings amount will go into making an app and the rest will be settled down among others.

Even if you’re funding your app through friends and family and even colleagues support, then also you need to have the mere idea of the money.

Finally, after studying the cost, and figuring out your pitch deck, it’s time for you to think about the available funding options for your application idea.

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