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“Pitch your app to investors as if it’s the solution to a problem they didn’t know they had.” – Paul Graham.

So, you have a brilliant idea for a mobile app that can change the game. Now what? To turn your vision into reality and take your mobile app startup to the next level, you need investment.

Securing investment for your mobile app startup can be a game-changer, providing the financial backing and expertise needed to bring your vision to life. But the path to attracting investors is no cakewalk. It involves careful planning, a solid pitch, and a deep understanding of what investors seek.

In this blog post, we’ll guide you through the steps to get investors for your mobile app Startups. Whether you’re a first-time entrepreneur or a seasoned app developer, our insights will guide you on your journey to securing the investment that can turn your app dreams into reality.

So, let’s begin.

Who Are Mobile App Investors?

Mobile app investors are individuals or organizations that provide funding for the development and growth of mobile applications. They seek promising app ideas, startups, or established companies needing financial support to create, enhance, or scale their apps.

These investors can include venture capitalists, Angel investors for mobile apps, private equity firms, and corporate investors looking to capitalize on the lucrative mobile app market.

To bring their app ideas to life, entrepreneurs often hire mobile app developers who possess the technical expertise to build, design, and maintain mobile applications, partnering with these experts to realize their vision and get investors for your mobile app startups.

6 Types of App Investors

You can get funds from more than one type of investor. There are several types of app investors, each with their unique characteristics, investment criteria, and objectives. Here are six common categories of app investors that are suggested by an iPhone app development company.

1. Bootstrapping

Bootstrapping can also be referred to as self-funding. Bootstrapping involves investing only your savings, personal loans, and current assets. Bootstrapping is an excellent method of self-funding. Business owners gain experience by sacrificing their savings. The business owner will not be responsible for the repayment of loans or borrowed money if the venture fails. Bootstrapping allows business owners to focus on process improvements and company expansion rather than fundraising.

2. Co-founders

Another way of finding app investors is by recruiting a family member as a co-founder. If they like your idea, they might invest in it. Why are co-founders the most reliable sources of funding for startups? Co-founders can act as sounding boards for your thoughts while also actively participating in the decision-making process. You will be protected from bank loans or debt and can quickly contact family members.

3. Angel Funding Investors

Mobile app seed funding is another name for angel finance. Compared to other types of financing, angel finance is more straightforward and adaptable. Before pitching your app idea to investors, ensure you’ve done your homework.

4. Crowdfunding

Launch a campaign to raise money using one of the three available funding models: incentive-, donation-, or investment-based. Websites like Kickstarter and Indiegogo allow entrepreneurs and investors to raise money for their mobile app design projects.

Why is Crowdfunding for app development a great way to raise money? Investors can track your progress and spread the word about your business. This alternative financing option is for you if you have had difficulty obtaining traditional funding.

5. App Competitions

There are many fundraising competitions around the world. Shark Tank is a well-known fundraiser. If you can, try to enter Shark Tank to raise money for your software. This is not about that. Colleges sponsor similar competitions, and technology firms provide opportunities for entrepreneurs to pitch mobile app investors and convince investors to fund their ideas.

6. Venture Capital Companies

Venture investors invest a significant amount of money. Although it is not always true, time is required. These investors want a program that is profitable and dashes. Why is investing in venture capital firms one of the best options? Venture capitalists owe nothing to them. Venture capital for app startup firms also provides funds without charging interest. Venture capitalists can be beneficial because they offer a vast network and do not require security.

How to Get Investors for Your Mobile App Startups?

Securing investors for a mobile app startup can be a challenging but crucial step in turning your app idea into a successful business. Here are the key steps to attract and get investors for your mobile app startups:

1. Document Your App Idea

You can plan and create your app more effectively if you jot down your initial ideas. A document is a great way to communicate your app idea to investors and to the Android app development company that develops apps. It is essential to document your ideas in enough detail to be able to understand them when you return to them. You can track your workflow by entering your thoughts.

2. Perform a Competitive Analysis

You can research your mobile app to learn about the market, the target audience, and their likes and dislikes. You may also use it to understand what your rivals are up to. A market study is something you should do for several reasons. To secure funding for your Mobile app business plan concept, you must conduct extensive market research. Validate your app idea once you have completed the market research.

Validate Your Mobile App Idea

How will you validate your idea once you have completed the research? Validating your app idea involves analyzing the problem and how your app can solve it. These are some things you should consider when validating your app idea. Once your idea has been validated, you can work with a mobile app development company to create a minimally viable product that will be used as a demonstration for investors.

Build an MVP Version of your Mobile App

You will get a better idea of how the app works by developing a minimally viable product with the assistance of iOS or Android app developers. Investors will also understand the flow of operations for the app. They can use the product in real time and see it as a physical object. If you offer a simpler version, venture capital firms are more inclined to invest in your app.

3. Know the Funding Required to Develop a Mobile App

Every step of your mobile app project will require more funding than the last. You need to get funds promptly to ensure the project succeeds. The average amount of funding is different for everyone. The exact amount will vary depending on your idea, the complexity of the app, and the type of app you are building.

4. Choose the Source of Investors

Now that you know how much money you’ll need for your app, you must find suitable investors. The following section is a list of all the various kinds of investors that are currently available. The list of investors will help you select the best source and type of capital for your business. We’ll look at the different types of investors who can fund your mobile application.

5. Branding Your Business

Once you have investors, brand your company. Investors are interested in learning that your company has a product and a brand. Investors can then have a more accurate mental image of the app’s concept. These are some of the reasons startups need branding.

Prepare Your Pitch for Investors

Don’t expect investors to listen to your innovative ideas for business and invest in your mobile app. You want to grab the attention of investors and continue communication at a higher level. You must know how to use the Investor pitch deck for mobile apps to achieve this goal.

4 Stages of Mobile App Funding

Let’s talk about the different stages of startup financing now that we know how to get investors for your mobile app startups. So, let’s begin.

1. Pre-seed Funding

This is when your app has just been conceived, and no substantial work has yet been done. It is a non-formal round of funding because most come from family and friends or your own money. The funds raised at this stage are usually used to build a team, create demos or MVPs, collect data, and conduct research, as well as gain early traction.

2. Seed Stage

The second mobile app startup funding stage is called the seed stage. It is a stage where you focus on your initial business growth. Your Mobile app startup grants have yet to be operational, and you are still working to improve the product. You are looking for investment to fund research, test the product-market match, and hire staff. Typically, angel investors, venture capitalists in the early stages, and startup incubators will respond at this stage.

3. Series A

You are well on your way to success if you reach this investment stage. You’ve now established your market-product compatibility and clearly defined the goal of your brand. Your focus now shifts to the growth of your product and business. It would help if you focused on improving your business, its marketability, and the scalability of your mobile app. At this stage, the most common Series-A investors are venture capital firms and “super” angels.

4. Series B,C, D, etc

If your product is in the series B or higher, it has been accepted by users. This stage is all about improving your product and adding new features and application maintenance and support to attract more customers. You have a good reputation, and people know about your service. You must now move your app beyond the mobile app startup stage and into a midsize business. The funds raised at this point are used to acquire companies, go public, form partnerships, upgrade branding, engage with new markets, and constantly improve your product.

How Much Investment Required for Mobile Apps?

Think about the recent purchases you made. Different price points depend on certain factors, such as a car, kitchen appliances, or maintenance services.

So, how much money do you need to develop an app? There is no predetermined charge for creating a mobile app. The mobile app development cost is determined by several factors.

The cost of labor, such as the cost of remote app developers, maybe the most significant factor when determining the price of developing an application. The cost of developing a mobile app is also affected by other factors, such as the costs associated with customer acquisition, platform development, testing, and hosting.

The development of an app takes a substantial amount of time and money. The average yearly investment of an app is determined by its complexity. It can range from $10000 up to $25,000. The price that you are quoted upfront only tells you some things. App development is a complex process.

Conclusion

Failure of an app can be due to a lack of funds or a lousy app development strategy. With the correct procedures and methods, you can find the best investors to fund your mobile application. You have to convince investors that your app is a good idea and has the potential to succeed on the market. Keep in mind that mobile app development only takes a few hours. You can, however, add new features to attract more users.

FAQ

1. What is the Funding Process for Mobile App Development?

The funding process for mobile app development typically involves identifying project costs, creating a detailed budget, seeking funding sources such as personal savings, investors, loans, or grants, and managing expenses throughout development. It’s crucial to have a clear financial plan to ensure the project’s success.

2. How Much Does it Cost to Build an MVP?

The cost to build a Minimum Viable Product (MVP) can vary widely, typically from $10,000 to $25,000 or more, depending on complexity, features, and development resources. It is better to take assistance from Android or iPhone app developers to build an MVP.

3. How Long Does the Fund Granting Process Take?

Venture capital fundraising takes 3-8 months to complete. Getting funding for your mobile app startup might take a while, and how long it takes will depend on the industry and stage of the company. With the amount of financing you receive in the early stages, you should be prepared.