Getting that first investment is a huge milestone for any app development journey. Today, it is more and more difficult to secure this investment. This is because everyone has an app idea, and investors expect to see more than just an idea. If you cannot prove to the investors that you are the best person to take your idea to the next level, they will not give you their money.
So, what does it take to secure this funding? Well, first, you need to be able to put your idea on paper. It should not just be all in your head. Next, you need to develop the idea to the point where you can estimate a ballpark figure of how much it will cost to take it to the next level or to launch a finished product. You need to do your homework on this because no one trusts a person who has no idea what his financial situation is. Finally, you need to know how to approach your app investors by pitching your idea to them. How else are they going to know about you?
That being said, here are some of the best ways to pitch your app to investors:
You need to have a prototype ready to present to your investors. The prototype must be fully designed and an accurate representation of what the final product could look like. It is difficult to comprehend how some apps work, especially if you cannot see a working demonstration. A prototype easily takes care of this and helps to convince the investors.
Besides, if you are not willing to take the time and come up with a working prototype of your app, how is anyone supposed to believe that you can pull off running an entire app development firm?
Also, think about how you will pitch this prototype to your investors. Chances are you will meet them over coffee or lunch, so pulling out printed slides might not be possible. It might also not be possible to show them what you’ve got on your laptop. It is always easier to be able to pull the prototype on your phone, so have this ready.
So they love the idea. What next? They need to know how you will pull it off. An app can be developed in three ways. Each of these methods comes with its own pros and cons. You can choose to do it yourself, hire in-house developers, find an app development company or outsource to Europe. How much work is it? What is your budget? What are your skills? These are the three biggest determinants of the choice you pick.
Make a choice and have a broken down timeline with the projected costs. Have well-researched milestones so that when you talk to your investors, they are convinced that you know your stuff.
If no one knows about your app, no one will use it. You need to market it if you want to have users. How can you do this? This is what the marketing plan details. Study your competition and learn how to make realistic estimations of expenses and projected user base. Have the numbers ready for your investors, because they will definitely ask for them.
What marketing strategies do you intend to utilize? Think about ASO, SEO basics, website and email sign up, cost per install ads, beta tests, media PR and ads, among other methods, will all have different cost implications. Have these numbers on your fingertips.
The Pitch Deck
You need a pitch deck ready for when you pitch. That’s pitching 101. Your pitch deck should summarize everything about your app in less than 10 slides. What problem are you solving? How are you solving it? If you are successful, what financial benefits do you stand to gain?
When pitching, your passion for your idea also goes a long way to convince your investors that you believe in this app. You need to make them see why you believe in that idea. Have the facts ready, but do not bore the investors with them. Some people like numbers, others are overwhelmed by them. Tread lightly and only share the most vital stats and what they ask for.
As said before, ideas are a dime a dozen. Investors invest in you and not the idea. Let your eyes gleam with passion and they will love you and invest more in you than the next guy. Remember, you might not get that investment on the first day, week, month or even year. The important thing is that you keep at it and keep making your product better every day. Reach out to new investors every day and don’t give up. Be confident and well prepared and you will definitely hook a big fish in no time.