84 / 100

“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.

 

Types of App Investors

 

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.

 

Read More: Best Crowdfunding Applications

 

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.

 

Python For Mobile App Development cta

 

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.

5 Steps To Gain The Trust of Investors For Mobile App Development

Gaining the trust for mobile app funding is essential for securing funding and achieving the right position for success. To gain investors’ trust, decide on the right process for funding and explore various funding avenues, including mobile app angel investors and idea investors.

So, here we provide the best steps to gain the trust for crowdfunding app development:

  1. Craft a Detailed Business Plan
  2. Develop a MVP
  3. Showcase Traction
  4. Build a Strong Team
  5. Maintain Transparent Communication

1. Craft a Detailed Business Plan

Start your business mobile app development by defining market potential and your app’s clear vision, making it stand out in this competitive market. Prepare a sheet of the app’s detailed plan, which includes functionalities, future prediction statistics, financial projections, and revenue forecasts.

Consider the app’s profitability or sustainability. This detailed business plan can show investors a clear path to success and reaching new heights of technology.

 

2. Develop a MVP

To develop a MVP(Minimal Viable Product) is crucial for mobile app development because it defines the core functionalities and marketing potential.

It provides a working representation of apps such as services and powerful tools and showcases them to investors. It provides user feedback about the app and demonstrates the app’s potential to investors, and tests the core or basic features in the market.

 

3. Showcase Traction

Investors want to see evidence of traction to determine whether a company is valuable. You must present early achievements, user feedback, user base, engagement rates, brand reputation, increased sales, and revenue milestones.

Display the key metrics to investors for solid evidence, such as lifetime values, retention rates, customer acquisition cost, and concrete data that helps to understand the app’s scalability.

 

4. Build a Strong Team

Let’s move to the fourth point: Hire Android developers with more experience to build a robust or successful mobile app with full functionalities or responsiveness. Highlight your talent team’s background for investors’ confidence that it invests in the right place.

It also shows their previous work projects and past app success or business growth. So, investors understand that they invest in the mobile app in good hands.

 

5. Maintain Transparent Communication

In this last point, building trust requires transparency and honesty in communicating your mobile app’s progress, financial statistics, challenges, and revenue milestones. Investors want clear, transparent discussions and honest answers regarding the app’s updates, reliability, scalability, integrity, functionality, and size and address any proactive concerns about risk.

 

AI mobile app development cta

 

Things To Consider For Early Access Funds From Mobile App Investors

Businesses seeking how to get funding for an app as early funds to start building an exclusive mobile app. It is very crucial to present early achievements to investors and how to get investors ready for mobile app startup funding. So, here we provide the best techniques or solutions for finding investors for a startup mobile app:

  1. Market Potential or Validation
  2. Revenue Streams
  3. Team and Expertise
  4. App Development and Technology
  5. Use of Funds

 

1. Market Potential or Validation

In this first step, explain to investors your target market, its size, and the unique value that your app offers with growth potential. Define your mobile app design to attract more users than the other mobile app startups, and explain what you set for your competitors and how users can choose your mobile app.

 

2. Revenue Streams

In this second step, clearly define your app’s revenue streams to investors and how you can generate revenue streams that profit the investors. In MVP app development, you can generate revenue streams of various types, such as advertising, in-app purchases, subscription plans, delivery fees, platform fees, collaborations or partnerships, and a freemium model.

 

3. Team and Expertise

Let’s move to the third step: Hire mobile app developers with extensive experience in the latest technologies to build an efficient or robust app with full functionalities. You can show their highly classified technical skills to your investors and demonstrate the support of experts in the relevant industry.

 

4. App Development and Technology

In this fourth step, define your app’s technical aspects and explain which technology is used in the app with development progress. With the help of a mobile app development company, you can easily define the tech stack of your app to investors and outline your mobile app strategy. These can attract early funding investors and indicate a potential timeline.

 

5. Use of Funds

In this last step, clearly specify to investors how much funding is needed to create a mobile app with full functionality. Prepare a plan to use funding and provide a detailed description of used funding to investors for clear communication. Define the funds allocated to development, marketing funding, and other related expenses in funding allocation.

 

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.

 

Get Investors for Your Mobile App Startups

 

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.

 

How To Create a Financial Model That Attracts Investors?

A well-designed or crafted financial model is crucial for attracting or motivating investors to invest in mobile app development grants. Most businesses are worried about how to get investors for an app. Here, we provide a financial model that attracts investors and understands your mobile app’s potential profitability and sustainability.

 

1. Cost Estimates

Calculate the one-time and recurring mobile app development cost for clear transparency in cost. It includes many other expenses such as marketing, hiring mobile app developers, designers, and other necessary. Make budget for every field of mobile app development such as operational, administrative , and marketing costs.

 

2. Financial Projections

In this, create an income statement that shows your app’s financial transactions, such as revenues, debit or credit transactions, expenses, and net profit. Financial projections include an income statement, cash flow statement, and balance sheet. These can estimate your app’s cash flows, liabilities, and equity.

 

3. Key Metrics

Firstly, calculate how many users are added to your app and calculate the cost of new users. After that, estimate the revenue generated by the customer over their lifetime. And observing the specified users who stop using your app and calculate the potential return on investment for investors.

 

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.

 

Frequently Asked Questions

 

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.

 

4. How Much Funding Do You Need to Start an App?

It depends on the app idea and how big the industry is. However, before you select the type of investor, you need to ensure what capital is required.

 

5. How can I Identify the Right Investors for my Mobile App Startup?

Research the right investor by checking the history of investing in mobile apps or other types of startups. Here, we provide some essential points for identifying the right investors:

  • Geographic preference
  • Investment focus
  • Past investments
  • Investor focus

 

6. What are the Key Metrics Investors Look for in a Mobile App Startup?

Here is the list of key metrics:

  • User Engagement
  • Revenue streams
  • Growth rate
  • Brand reputation
  • User base