Scenario 1 - An App Idea Was Thought Up But With No Funding
Say you have an idea of an extraordinary mobile application, but no money to make it true. Have you heard of investors before? Though, investors are usually not that interested in an idea as such. They need a plan, a calculated approach, and a good presentation that includes market analysis. Accordingly, before you try to reach investors, you may want to take your time to elaborate on your idea step by step. You will most likely need a team of experts or, at least, a bunch of like-minded people who know how to deal with numbers (although lone warriors of developers exist too.) This sounds like you are developing a plan now. Among other things, you may want to consider the following points:
• What the development stages are, and how much each of them will cost the investors;
• How much time app development needs and when you'll be able to start selling;
• Competitor apps and their marketability, as well as the advantages that help your product stand out;
• How much the initial promo campaign will cost;
• What potential profit your app may bring.
This is something that you should definitely consider. When divided into said points, your idea will take on flesh and meaning for investors. Make sure you check and evaluate the stage of the initial promo campaign in an app store: the fate of your product depends on it.
Scenario 2 - Work In Progress
It might be a different way: say, you and your team are already working on an idea, and you need some investment. You are no longer unfounded, and this is a plus. During the pitch (or e-presentation) stage of your project, you may want to focus on the following points:
• project development level — it's always nice to look at what you've already done;
• team professionalism and responsibility. A promising professional as such will increase the odds of success;
• explain the idea in detail and show the value of your app;
• designate and justify the total amount of money needed to turn your idea into a reality.
These are the milestones you should consider. The remaining points will overlap with those we named in the previous scenario: make sure you show the investors your market analysis report, and explain why your app is competitive. The plus is that, at the development stage, a lot becomes clearer as time goes on.
This is important to know! Show your investors that you understand how to apply marketing strategies, and tell them how you will search for an audience. Stay honest though. If you need more staff to implement your idea, just say so and include it in your budget. If you are already delivering a presentation, list what you need above and beyond.
Scenario 3 - MVP Stage
The MVP stage means that your product is rated as minimum viable. It is believed that it is at this stage that a startup has a chance to receive investment. Investors are interested in facts as they are profit-oriented, and they will want to see a proven minimum viable product that can be tested and used for feedback.
How To Present Your Brainchild Right
The answer is simple: honesty is key. Evaluate metrics sensibly, show them unit economics, and come up with a detailed marketing plan. Focus on your promotion strategy, indicate how much money you will need and for what. Tell them how you are going to monetize your app. The clearer your plans are, the more likely your chances of getting financial support from an investor will be. Therefore, do your best to think about each part of your mobile app design and sale plan.
Where To Look For An App Investor
The common opinion that, if an app is cool then everyone will want to buy it, is not entirely true. At least at the initial stage you shouldn’t expect the support of Google or Apple: it’s highly likely that they won’t notice you at all. Sometimes it’s not at all the bad outcome, we’ll elaborate on that below. There are many ways to find investment for your app via startup platforms, crowdfunding, and accelerators. You don’t need a thorough understanding of how those work. Just search the web for listings — and believe in your lucky star. Here are some helpful sources:
Startup platforms are a good option to look for investment. Check out Startups.com or Gust.com.
Business incubators and accelerators are excellent for startup projects. Check out 500Startups, Ycombinator, DreamIt Ventures, and more.
Crowdfunding platforms like the famous Kickstarter, Crowd Supply, Ourcrowd, and others will not only bring you the necessary funds, but also help you warm up your audience if you’re promoting a game;
Sometimes you can find useful contacts on a professional social network. LinkedIn and Xing are the most well known ones in the global community.
So-called business angels who take great interest in young and promising developers may help you as well. You can look for their support at Angel Capital Association and Angel Investment Network.
These are just some opportunities of many for finding funding related to your app ideas.
Why You Don't Have To Sell Your Idea To Large Companies
Unfortunately, app developers tend to make mistakes out of inexperience. Hoping that Facebook, Apple, etc. will buy their ideas is one of them. Devs submit their detailed plans for review through open communication channels, but little do they know that Apple and Google reserve the right to claim their generous offers as corporate intellectual property (IP). Yes, your product can be claimed as a corporate-owned one without any third-party links and, of course, without any royalties. That is, if they notice you at all. Although, in this case, they had better not. Fighting for your intellectual property rights won’t work. The same applies to any other large corporations.
There are a couple of conclusions can be drawn from this:
• Study various documents like code of conduct or company policy that a company has published before contacting it.
• While you are still a no-name brand, try ways that are closer to your current status to bring your idea to life.
Why Would Your App Be Interesting For Investors?
There are several answers. The most obvious one is, of course, profit, although not only that. Business angels, for example, usually see it like a kind of mentoring mission among other things, while other investors consider it a way to improve their good standing. You'd better not bet on it though. Keep the following idea in mind: to whom would you give money yourself? That’s who you may want to become. General app quality, a professional presentation, being open to communicate — all this makes you a viable candidate to support.
Entrepreneurs and newbie app developers often lack faith in their product, which leads to weird actions: when they go to pitch, they show obvious flaws and rely on a lucky break. Make sure that you study the stats: they will support you in your decision to look for investment on your mobile application idea.
