Who Should Read this Content? – “This content is for those, who have a mobile app idea and looking for investors to invest in it. This article will help them how they should pitch their mobile app idea among investors so that they get ready to invest.”
Have you got an amazing mobile app idea? Do you think that it will surely appeal to a broad range of customers?
But, you might have a big question in your mind – how to get an investor for an app – Right?
Across the world, there are many new startups that are facing this challenge while getting their first investor. It is obvious to think that money is just being easily given to anyone with a mobile app idea when you are constantly reading or hearing news about any startup that gets hundreds of millions of dollars in funding.
Even, this is where approximately 90% of companies fall over. It is not easily possible to find investors that believe in you and your idea as much as you do.
You got success when you convince your investors to invest in you; however, it mainly depends on how you are convincing them. You can do this logically and emotionally driven debate and that is called a perfect pitch.
In this article, I have mentioned some of the simple steps to pitch your mobile app idea to investors and get funding for it:
Make Sure You Have Prototype Ready
If you have decided to get investors, who invest in your application, it is a must that you have a fully designed prototype. As the mobile app market is growing continuously, so it is difficult for investors to fully comprehend how the application will function if they can’t see it.
If you are having an app prototype with you, it shows that you are serious about your project. Well, coming up with a great idea is not the big thing, but executing it in a right manner is really matter. If you are thinking that why you need to put time and some amount of money into making a designed prototype, then why should an investor put up his money.
Even creating a prototype is a lot easier, you can choose two to three user stores and design them. However, if you have some funds with you, you can hire an expert designer or app development company to help you with the design. In case, if you do not have funds, you can use UI kits as they will allow you to design instantly as a user story by simply dragging and dropping design elements.
Explain the Problem
Once you made prototype ready with you, you should begin with explaining the problem because most of the successful mobile apps are solving the problems for their users. For example, Uber solves the problem of getting places. Facebook solves the problem of staying in touch with dear and near ones.
When you explain the problem, make sure that shortness plays an important role here because any problem which requires a lot of backstories can erode investor confidence. You can explain the problem that is simple, but meaningful and easily catches attention of investors.
Introduce The Solution
After explaining the problem to investors, it’s time to introduce the solution as they know who you are. They are aware of it that you are going to fix the problem, but it’s time show them how you are going to fix it.
Make sure to highlight the entire solution and explain to them how it is going to improve the current solution. For example, if you are pitching Uber, you will not only say that it is an app that is helping users to get a taxi, but rather than this, you need to highlight the pain points that it solves. At this time, you can make good use of a functional prototype as you can include a demo or some of the screenshots.
Your Targeted Audience & Market
It’s time to explain to your targeted audience and market. Don’t say that everyone in the world is a potential market. You need to be true and realistic about who you are developing your product for and break your market into TAM, SAM and SOM.
It is not going to impress your audience only, but it will help you to think more strategically about your roll-out plan.
Tell About The Competition
It is one of the most important parts of your pitch as you need to let your investors know about your competitors. However, lots of people forgot about it, but it is essential to provide enough information about your competition like why they are so different from their competitors.
One of the best ways to communicate your value plan over your competitors is to let them know about the competitors in a matrix format, where you can list out your competitors down the left side of the page. Across the top, you have your main features and benefits that you can place and check marks in the boxes for which company offers that service.
Across the top for every single category, you have check marks and your competitors lack in major areas to show your competitive benefit.
Do you know that investors most curiously wait for this slide? They wanted to know how you are going to make money as it is one of the main things about the entire app development project. At this step, you need to be very specific about the products and pricing.
You can show them and emphasize again how the market is keenly waiting for your solution. You can show them an urge of the audience that is looking for your solution.
Your Funding Needs
When it comes to talking about your funding needs, you need to be very clear and spell out how much money you have already invested and how much money you need to achieve next level.
You should discuss it openly with investors like what level that is and how many rounds of financing you are going to do for funding. You can remind the audience why your management team can manage their investment for growth. Ultimately, you have to provide complete information like how much you need and why you need this money and what it will be used for, etc.
So, this is how you can pitch your mobile app idea to investors and convince them to invest in it. With the prototype, explaining the problem with a right solution, and your targeted audience, you can increase chances of getting investment.
It’s only some of the extra steps to get the idea out there; however, when it reaches the app store, it will not be a good app idea, but it would be a great one. By being realistic and specific about your idea, mobile app startup can easily convince investors to funding app.
What do you think about it? How will you pitch your idea to investors? You can share your views by commenting below!