If you have come up with an app idea and you think it is worth investing, you will need investors. However, pitching your app idea to investors seems to be a daunting task.
An investor will not throw money at your project just because you have a good idea. You will have to prove that it will deliver a high return to them. There is no doubt that you will have to do a lot of homework before seeking investors. Bear these tips in mind before pitching investors.
Create a prototype
Before investing money in your app, investors would like to get a complete idea about it. It isn’t effortless to understand the features and functioning of an app. It is not a very old industry, so most of the investors do not know much about it.
They would like to know about the app in detail to make a decision. If you have a prototype, investors will think you are serious and show interest in your project. Why would an investor give you their time and money if you do not have the time and resources to create a prototype?
Creating a prototype will show that you are confident about the success of your app, and you have put the effort into creating a prototype. There are some online tools you can use to create a prototype.
However, if you have some funds, you can hire professional designers. You can also take out a funding source in case your savings have fallen short of little money, or you can use the profits you earned by selling Irish shares to fund it.
Explain the problem and solution
OK, you have created a prototype. Do you think it is enough to convince investors to put up the money? Of course, not. Though it shows that you are willing and serious about pursuing your app project, investors want to know more about your app, for instance, how it will solve a problem, how the target audience will get benefit from it, and the like.
Facebook is an app that has solved the problem of connecting with people who are overseas. You can connect with anyone from all across the globe. Similarly, Swiggy has helped users and restaurants to communicate without covering massive miles. In the same way you will have to tell investors what problems you are aiming at through your app. There is no use of launching an app if it does not solve a specific problem. Answer the following questions before you go to your investors with a pitch.
- What value is your app adding to the target audience?
- How will it make people’s lives better?
- Which problem will your app solve?
- What is the USP of your app?
If you want investors to make the decision quickly, you will have to tell them why current apps cannot solve the problem and how your app can do it. You will have to say to them why it is crucial to invest in the app. It will be a good idea to explain the essential features of your app and tell them how this idea is different and better from others. Be clear with the intention of why your app is worth investing in.
Approach investors professionally
Of course, you will have to arrange to approach investors. It is not like you will randomly call them and start discussing your app idea on the phone. Having a website is a professional way to get a foot into the world of investors. If you have a couple of investors in your mind with whom you want to schedule a meeting, a professional approach says you should drop an email.
Every investor will turn to your website to know about your app idea. Of course, they would like to have the necessary details before having a meeting. If you have a website, they will trust you as it sounds reliable, trustworthy, and professional. It will naturally increase the chances of investors to listen to your idea.
However, you will have to make much more effort to find the right type of investor for your app. Investors can be your friends, angel investors, or venture capitalists. You will have to consider your needs to pick the right investor for your app. If you have not been in contact with the investor before, send in a professional mail. Make it brief and concise to convey the most critical part of your message.
When you get a chance to connect with your investor, be specific about raising funds and return on investment. It would be best if you have a blueprint about how much money you need, how you will allocate funds to different app development segments, and how much return they are likely to get.
It is good to have a plan about how the estimated expenses are and how that money will be used in the app project. Having these details at the time of the meeting, investors will be able to analyze the overall plan and decide whether it is worth investing or not.
If you want to pitch your app project to investors successfully, you should bear the points mentioned above.