How To Find Investors For Your Mobile App
How To Find Investors
Have you ever had an idea that was so unique and out if the box that you decided to turn it into a reality? In this time and age where everything is digital, a mobile app is a great idea to invest in. It is not easy to make a mobile app as there are already so many apps in the market for everything you need. Don’t want to get out of the house to get a taxi? Uber. Want to socialize without having to get out of the house? Facebook. Want food to be delivered directly to your place without having to call the restaurant? DoorDash.
The most important aspect of building your mobile app is having enough funds to go through with this idea. Without any resources, it is merely a fantasy. It can be tough financing your app if you do not have enough balance in your bank account but it is not impossible.
How to Find Investors for My Mobile App
There are some important aspects you need to keep in mind when finding investors for your mobile app.
Know your app
You need to convince to investors that your app will be important in everyday life. Tell them about specific features that solve a particular problem that the already existing apps did not seem to solve yet. To know this, you need to actively do your research and providing statistics can add to the selling points of the app. Most importantly, it all needs to be narrowed down to a small pitch which persuades the investors without wasting their time.
Uniqueness of your app
The most important question to ask yourself before pitching in your idea to investors is why should they invest in your mobile app? Investors will only be willing to invest in your app if they believe that your app can make them richer, otherwise what’s the point. If your idea holds no originality or is already being used by an app creator, it is less likely that your app will be funded. An existing app like yours means there is not much scope for your success especially if the existing app was not a hit.
Why is your app idea unique? How much potential does it hold? What is the user demand? Will it be profitable? These are some questions you need to be prepared to answer when pitching in your app idea.
Types of investors
You need to do your research when it comes to who you want to do business with and pros and cons of each. There are two main types of investors; angel investors and venture capitalists. Angel investors use their own money to fund a business while venture capitalists use other people’s money to invest in your business.
It is not easy to get investment from an angel investor and it is highly likely that they will want to negotiate for their benefit, if the offer does not suit you, it is best to refuse politely. Mark Cuban is a great example of an angel investor as he has a net worth of estimating $4.3 billion. He has made about 374 investments in total. He is also part of a hit show called Shark Tank where entrepreneurs come to pitch in their business ideas and investors will then decide if they want to invest in the business or not. Although it is quite difficult to get funding from an angel investor, it is more challenging to get an investment from a venture capitalist.
While searching for an investor for your app idea, keep a look out for those whose interests align with your idea. For example, if you want to create a food app, your best bet would be to pitch your idea to an investor who has already invested in restaurants or food chains. If you are interested in building a fitness app, the best person to pitch your idea to would a sports enthusiast or an athlete with a big pocket.
In short, pitch your idea to those who have shown interest in similar products before or believe there are chances for your app to be a success.
Branding of your app
Branding is a very essential segment when it comes to any business. Your company’s logo, color palette and graphics play a huge part in attracting customers. If it is not something appealing, it is less likely that you will get any investors for your app. Minimalism is the new trend being followed by many celebrities and wealthier people of the society. It is better for your app if you stick to what’s trending for greater chances at finding an investor.
Do your research on what’s hip and happening since trends keep changing.
All around the world, different app contests are held where you get a chance to earn a hefty amount of money to invest in your app. There are always many other platforms that help you gather funds for your app. For example, growth mentor posts competitions where you can pitch in your app idea and if the idea is admired by the judges, you get a chance to win a mighty amount. One of the competitions offers $100,000 to the winner whose idea would be chosen.
Keep in mind that it is not easy task to get selected as there are many competitors. Your idea has to impress the judges to an extent that you stand out from rest of the crowd.