Finding investors for your mobile app is challenging – regardless of what stage you’re at in your business. Not every investor will see your vision. You’ll get more no’s than yes’s (just the nature of the game). However, you know you developed a game-changing app. So where’s the issue?
The problem may not be the app itself but how you present it. In this guide, you’ll learn how to find mobile app investors and the easy steps to get them.
Different Types of Mobile App Investors
The great news is that you have various options for mobile app investors. Here is a quick rundown of the different types of people who may be interested in helping you fund your app.
Yourself and your network
Most first-time app creators use at least some of their own money to fund their app idea. It could come from savings, personal loans, or credit cards.
You could also ask your network and support system for their investment. Their contributions may not be massive, but they can provide a solid starting point. Remember to treat them like any other investor and notify them about relevant updates.
Angel investors
Angel investors are wealthy individuals who like to invest in promising small businesses. They may be involved in development and can serve as mentors. You can find them on websites or through networking. They will likely want equity in exchange for their investment, and they may also want to provide advice and be involved in the app development process. Be careful in choosing angel investors to ensure they are people you can trust and want involved in your business.
Venture capital firms
Venture capital firms (VCs) invest large sums of money in startups that will yield high returns. They may also provide technical or managerial expertise to help your business. It is rare for VCs to invest in an app idea, especially one from first-timers. It is more common for VCs to fund developed apps that have a proven revenue model.
Crowdfunding
Launch a crowdfunding campaign and ask for contributions from the online community. Don’t forget to give back and add benefits for people who supported you, like free upgrades or other incentives.
App contests
App contests are like Shark Tank. You pitch your app idea to investors and hope to win their support. You can find numerous contest opportunities in universities, tech companies, or incubators.
Incubators & accelerators
These are programs that develop and grow startup businesses for success. It’s a valuable place to build your network, learn new ideas, and gain funding. Look for those specific to the mobile app industry to give you guidance and support.
Investment Stages
The other important thing you need to know when trying to secure funding for your app idea is what round of funding you’re in.
There are multiple rounds of funding in app development. Each stage requires a different amount and involves different types of investors. There are five main investment rounds.
Pre-seed
In the pre-seed stage, you get initial funding primarily through bootstrapping and your network. You need just enough capital to get the ball moving and develop a prototype.
Seed
In the seed stage, you need more substantial funding to turn your prototype into a working model. You’re looking at incubators and angel investors for support. You’ll need the funds to build a good development team and minimum viable product (MVP).
Series A
In Series A, venture capital firms become very valuable. You’re app is launched, and you’re now focusing on growth. Because this is a “sink or swim” stage for investors, you will need to prove your app can be profitable and generate long-term revenue.
Series B
Your app is swimming at this stage – sales are rising, and business is stabilizing. The capital you gain from VCs will help accelerate growth and meet demand.
Series C & beyond
In Series C, your app is considered a success. You’re making enough revenue to cover your expenses without needing additional funding. You’ll only need investors if you’re looking to expand or go public.
How to Get Mobile App Investors
So, how can you win and gain investors’ funding for your mobile app idea? Here are some key things to consider.
Know how much you need
First, you need to figure out your investment stage – pre-seed, seed, Series A, etc. Every round requires different funding because each serves a distinct purpose.
You’ll likely need anywhere from $10,000 to $2 million in the seed stages. In the later stages, you need anywhere from $10 million to even $50 million. Knowing how much you need is critical because it helps you determine the right investor to ask.
Of course, not every app needs millions of dollars to get off the ground. If you are developing a more simple app, you might never need to get past the seed stage.
Define your app idea
When you have an app idea, it’s essential to have it completely defined. What makes it unique? Who is it for? How will it generate revenue? How will you expand it as it gains success? Outline what features and capabilities your app will have and which platform (iOS or Android) it will be on.
Be sure to document every action, goal, and brainstorming session. It’s a good thing to have as a way to explain your app to investors.
Analyze the market
Research the market and see where you can make an impact. Is there space for your app in the market? Who are your competitors? How is your target market currently trending?
The market analysis aims to prove to investors that there’s a demand for your app and can be profitable. Be thorough in your research and use robust data to support your case. (This step should be done before you ever approach investors.)
Develop the brand of your app
Branding is how your app will be presented and positioned in the eyes of consumers and investors. This is where you develop a logo, slogans, color schemes, and messaging to help your brand stand out.
Designing a visual identity shows that you’re serious and have put a lot of thought into your app. It’s also an easy way for investors to visualize and understand your vision. So take the time to design your corporate identity, as it can significantly help you in funding negotiations.
Market and test your app
Don’t wait until launch to start testing or promoting your app. Spread the word about your app to people as soon as possible. Develop a ready-to-use MVP and start rolling it out to users.
With marketing and testing, you achieve several things, such as:
- Generating buzz and excitement around your app
- Finding potential customers
- Gaining feedback on app performance
- Reaching new investors
With this data, you can prove to investors that there is a demand for your app, which can help win their support.
Pitch your idea
Start pitching your idea to investors with your app built and carefully defined. Whether you’re doing an elevator pitch or crafting a pitch deck, be sure your presentation answers these questions:
- Who are you?
- Why are you here?
- What is your app?
- What’s the problem you’re trying to solve?
- How does your app solve it?
- Features? Functionalities?
- Profitability? (very important)
It helps to have a demo or MVP during your pitch so the investors can see first-hand what the app looks like and its functionality.
Find Your Next Investor Today
Investors are waiting to hear your app idea. So let’s get it ready-made for them. Confianz can help you at every step of the way – from building your mobile app, developing an MVP, and even testing its performance. We offer comprehensive mobile app development services for businesses of all sizes and industries.
Our process includes building an MVP for efficient testing and refinement, ensuring high-performance apps with seamless user interfaces. Confianz also excels in custom app development, system integration, and enterprise solutions. Our commitment extends beyond development, providing continuous support and maintenance, making them a strategic choice for transformative mobile app solutions.
Our skilled team of mobile app developers possesses expertise in both Android app development and iOS app development, allowing us to optimize the user experience for each platform’s specific features and functionalities. Connect with us to learn more!
