Gain Investment For Your App – Our Top Tips

Top Tips To Gain Investment For Your App

So you have come up with an amazing app idea that the world needs to see, you’ve done the research, you’re excited – You have enough capital to get you started but you don’t have enough money to fund the entire development……What now? Read on to see our top tips to gain investment for your app!

1) Do your research

We don’t have to tell you how important it is to research the industry, but that doesn’t just mean your local competition, it also means the demand of the product. Make sure you put in the work and run the numbers.

We are all well aware that COVID-19 has changed the world, and as a result some industries are booming and some may unfortunately never recover. Make sure you know and understand the market and potential pitfalls.

Is your app idea future proof?

Potential investors want to feel excited about your app idea and not only be able to see a return on investment but that the project is going to achieve optimal success and most importantly that their money is going to be safe. 

Online retail is booming; according to Statista research, global retail e-commerce sales totalled $3.53 trillion and is expected to grow to a whopping $6.54 trillion in 2022.

The Tourism industry however, is not doing so well; In the year ending January 2021, total international arrivals reached 8,000 visitors, a decrease of 99% relative to previous year.

Not only is it important to make sure you know the market, make sure the app idea hasn’t already been done before. There are literally thousands of apps being made and loaded into the app store everyday so it’s crucial to create an app that doesn’t exist yet

 

Top Tips To Gain Investment For Your App

2) Have killer branding and mock ups

Branding is everything in today’s society and tells people the story of who you are as a company. Make sure your branding is eye-catching and relevant to the product and most importantly try to stay ahead of the game in terms of trends.

There is a lot of competition on that smartphone home screen so it’s a necessity to stand out amongst the crowd.

If branding isn’t your strong point, speak to your development agency, they will have graphic designers in house that will be able to assist you with your brand identity, including logo, colours and typography.

It is recommended at this point that you make a prototype for your app. Potential investors will want to be able to visualise the product to gain a better understanding as to whether they like the app, know how it works and if this opportunity is the right fit for them.

 

3) Know your product & prepare your pitch

If you can’t explain your product in a few brief sentences, go back and rework your pitch. There are different types of pitch – the first is what we refer to as an elevator pitch. If you by chance walked into an elevator and struck up a conversation with a billionaire who might fund your app idea – what would you say? 

If you get so far as Shark Tank or Dragons Den, then your pitch will need to be more detailed of course, you need to know the following as an absolute minimum for the best chance to gain investment for your app.

  • How much money do you need?
  • How much of your company (equity) are you prepared to give away in return for an investment
  • What is your marketing strategy
  • Why you?

 

Top Tips To Gain Investment For Your App

4) Set your goals

App Development can feel like climbing a mountain at the beginning, so it is important to set achievable goals. Ideally you will have bootstrapped your way to the first round with some help from friends and family however once these funds start to diminish it’s a good idea to set SMART goals and know and understand how much money you will need for the next rounds of investment. There are some specific rounds of investment see below:

Seed Funding Round – This is the earliest stage and the first funding to go towards the app. This funding provides the initial start up capital for the app.

Series A Funding Round – This is generally the largest round of investment and can come from a variety of angel investors or venture capitalist’s. This round of funding will normally take the app to it’s completion and launch.

Series B, C Funding Round – This round of funding is generally once the app is launched and goes towards growing the company and the ongoing needs of the business such as software development and maintenance and marketing costs.

It’s also important to note that different investors have different goals so identifying which type of investor will suit which rounds of funding is key to gain investment for your app.

 

5) Get connected

Get connected and create a business network of people in your local area, business breakfasts and the local chamber of commerce are often putting on events for like minded individuals to meet and collaborate. 

It may be at one of these functions you meet or are put into contact with an Angel Investor or Venture Capitalist. These types of people are often affluent individuals who invest in start-ups in exchange for an equity in the business. 

Or it may just be that you make great connections with people who can offer expertise and advice, it’s great to have a group of people who are in your corner!

 

Top Tips To Gain Investment For Your App

6) Crowdfunding

Crowdfunding is a way of raising investment through friends. Family and investors and is mostly done online on crowdfunding platforms or via social media. 

So what are the benefits of crowdfunding?

By using an online platform, you will have access to thousands of investors who can see your campaign immediately. By offering your idea to a multitude of people from all walks of society you’ll quickly be able to see if your start up is workable and the level of interest people really have for it. 

You will also have the opportunity to streamline and expedite the fundraising process and rather than spending time pitching to each individual investor.

Conclusion

Globally, the mobile app market generates about $60 billion in revenue every year. Raising funding for an app can be difficult however with a great idea and the right support, connections and knowledge it is definitely achievable. Know your product have confidence in yourself and take advice from those who have been on the start up journey before. If you follow the above tips you will definitely be on the right track to success!!