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The market for mobile apps is lucrative, and everyone with an innovative app idea wants a piece. But hold on, is an idea merely enough? Well, NO! If you want to build a highly scalable and unique mobile app, you need significant funds. Market research, product development, marketing activities, and other stages of app development require financial investments.
But getting funding for your app is surely not a cakewalk. Hence, you need to find investors for your business. Well, before you pitch your business idea or app concept to investors, make sure to conduct some preliminary research. If your idea looks revolutionary to investors, they’ll surely invest.
However, apart from the idea, if you present an MVP with minimal features, it will help investors to check and use your product in real-time. Investors will see that you are serious about your product and hence, they will be more likely to invest in it.
In one of his essays, Paul Graham wrote:
“Most app investors decide in the first few minutes whether you seem like a winner or a loser, and once their opinion is set it’s hard to change. Every startup has reasons both to invest and not to invest. If app investors think you’re a winner they focus on the former, and if not they focus on the latter.’’
Thus, the first impression is really important to convince an investor. So, moving forward, let’s discuss the steps to gain the trust of your investors and the types of investors that you may find.
The market offers a variety of ways to get funded. Depending on your app idea, the amount of funds you need, and the stage you are at, you’ll need to look for investors in different places and pitch your ideas in different ways.
So, without further ado, let’s dive into the different types of investors you may find.
While angel investors for app development in nyc are more often individuals, venture capitalists are usually companies. In order for investors to take interest in your app, you have to make a very compelling argument to prove why your idea is worth the investment.
[Also Read: How to raise money for mobile app startup?]
Having just a baseline app idea won’t help as investors want to know that you have really given this idea some thought. They want to see that you have analyzed your competitors and your product has the potential to succeed in the market.
Below are the key steps that will help gain the trust of investors and raise funds for your creative idea:
Finding a good idea can be a daunting task. You need to brainstorm ideas that can make a difference and solve customers’ pain points. You can start by working on your area of interest or passion. Once you have an interesting app idea, the next step is to validate your app idea to make sure that it is promising. Investors don’t want to fund an app idea that already exists.
So, do a thorough research of the market and figure out the competitive landscape of your app’s market. Make sure that your app idea is not just a copy of another company’s offering. You can also consult an app development agency to understand the feasibility of your idea.
It’s important to understand the competitive landscape of the market. You need to do thorough research on applications in your space to find out what innovative features are they offering to users and how you can stay ahead of them.
When studying the competitive environment, you will get an idea regarding the size of the market you can expect. You must define the target audience and the market share, so that you can present your potential mobile app stakeholders with the real figures of the probable opportunities and risks, which can be expected.
Hiring a reliable app development partner can help turn your idea into reality. Choose a company that has successfully carried out similar projects and delivered analogous products.
The company also provides the latest industry expertise and access to the newest technologies. It helps create an app with the latest features and functionalities that will definitely impress investors. So, joining hands with a reputed development partner is the right thing to do if you want your product to get app funding from investors.
To gain the trust of your potential investors and be persuasive, you should know the basics of running a startup and money-raising yourself. This will help you understand the type of capital to take and the investment stages existing.
Apart from understanding the basics of investment, you should also work on the strategy to generate revenue. The plain and clear strategy presented to the investors will make them finance your mobile app development more wholeheartedly. So, if you are still thinking, how to monetize an app idea, it’s essential to study the various monetization strategies and be ready to answer the clarification questions about them.
Minimum Viable Product or MVP is the first version of a product with a basic set of features. It is an effective and affordable way of helping investors understand the working flow of your app. An MVP allows you to understand if your app has the potential to succeed before going to app startup investors.
Moreover, MVP provides your potential investors with a physical product that they can see and use in real-time. An investor loves nothing more than a business that already works and whose owners have invested time and their own money into it.
An MVP offers enormous flexibility so you are able to continue tweaking until you receive the ideal response. For a successful MVP development, you can contact us. Our team of experts will help create an MVP that will look favorable to mobile app investors.
We recently helped JobGet to create an application that makes the job search process easier for blue-collar workers. From understanding the client’s vision to MVP development, our team of experts helped them to raise funds for their unique application. JobGet has bagged $2.1 million funding to date and more than 1,50,000 job seekers have been placed.
Now that we have seen how to get investors for an app, let’s discuss the various stages of startup funding.
Now that we have seen how to get funding for an app, let’s see how much funding one needs for an app startup.
When it comes to how much funding for app startup is required, there isn’t any fixed figure to achieve. The exact number will depend on your app idea, the complexity of the app, the team, and other factors. For instance, a simple MVP with minimal features can cost anywhere from $15,000 to $50,000. A more complex cross-platform app with APIs, on the other hand, can cost anywhere between $50,000 to $200,000.
But don’t worry, we have already discussed the options to raise money for your startup. However, before going to the app investors, work with your full-cycle app development company to figure out the estimated cost of developing your app, functionalities, and primary purpose of the app. Without any budgetary plans in place, you risk making a monetary miscalculation that can cost you your dream.
If you receive less funding, you won’t be able to even start the app development process. On the other hand, if you receive more funds than you need, you may end up giving away your owner’s share or even your company to mobile app investors.
Once you’ve received funds from investors, what’s next? Well, your work doesn’t stop here. Your app needs continuous improvement and maintenance. Once your app is launched, keep improving your app and take feedback from users and app investors as you grow. As you move through the various stages of startup funding, your business will receive funds that can be used to add innovative features to the app, improve the design, and scale the business.
Plus, with the advent of new technologies and updates in OS, your app will surely need to evolve constantly. For this reason, you must hire a capable startup app development company that can ensure the smooth functioning of your app for a long time.
Most mobile app startups fail due to a lack of funding, as finding investors can sometimes be challenging. However, following the right approaches and timely-executed strategies will help you get the right investors for your product. You need to prove your concept and be ready to sell your app idea to market movers and shakers as they only invest in the strongest ideas. Remember, app development is not a one-time process, but it’s a continued task. You need to update your app with new features and updates once in a while to keep your users captivated.
Need help developing a bug-free MVP that can help get investors for your app? Look, no further. Appinventiv, a leading app development partner, has worked with multiple global brands to achieve their digital transformation goals. The company has assisted multiple startups to gain huge funding based on the MVP development. To ensure your app has a future, contact us.
Q. What is the funding process for mobile app development?
A. There are various types of funding processes that can help you accelerate your mobile app development. A few of them are listed below:
Q. How to gain the attention of investors?
A. Angel investors and venture capitalists only invest in startups that they find are unique. Entrepreneurs must look for different ways to gain the attention of investors and showcase their product’s USP. A few of the tested methods are:
Q. How can MVP help with getting funding for my app idea?
A. New app ideas are generated daily, and investors often hear them. However, an MVP helps raise money as it defines your app idea as functional. The demo of your app provides an interactive demo experience about your product. The chances of experiencing bugs and glitches are high, but no matter what route you take, investors will be impressed that you’ve put huge efforts into bringing your app to life. MVP defines your app’s vision for the future, and investors want to invest in products that can promise a future.
Q. How much does it cost to build an MVP?
A. The cost of developing an MVP depends on various factors like the app domain, platform, tech stack, team size, and geographical location of the development partner. The average MVP development cost is $15,000 to $50,000. However, a fully functional app with cross-platform and API development can cost up to $200,00 or more.