While app stores are still vibrant with the performance and output of Indie developers, among them there are quite a few who raised capital for their app development project and became a success. Getting funds actually helps developer companies find larger budget to do things in style, especially promotion and marketing of the app. Moreover, a sound fund-backing actually impel them to test the app across diverse platforms and make it fit for the market. Obviously fund raising is not easy and one needs to consider carefully the obstacles and things that works and also the things that do not.
Know what makes investors interested in your project
Many developers have the mistaken notion that investors are likely to be interested in an app just by knowing the idea. Obviously, they fail to consider that ideas without execution do not mean anything for anybody, let alone investors. A really great idea can account for the majority of the achievement but then to assess the achievement finished product is necessary. From the idea to the finished product there involves a great deal of craftsmanship. Among a bounty of great ideas only a handful of them really make the success stories. So, when presenting your would app project to the investor back the idea with strong developer credential, proven track records, scopes for the app to cut through the competition, the idea regarding marketing, projected acquisition strategy and milestones, etc.
What are the fund raising options?
Raise fund from your own sources: First of all, you can depend on your own sources for raising funds. You can raise money through various personal means like from your existing job, financial savings, fetching money from your separate business, etc. Obviously, a premeditated approach with focussed preparation can only help you to do that. App business needs hefty sum for an individual.
App contests: These days, app contests offer a good way to draw interest of investors to your app and developer credential and find people who can be interested to fund a project. Obviously, in any app contest the top app idea draws the maximum attention and funding offers. But it is not rare that some investors may find a non-winning one interesting as a business value proposition. Investors want to find how the app can add value to the life of millions and if your presentation can convince them on that regard, your job is none.
Seeking funds from well wishers: Sometimes your good old friends and family members can come to your aid better than so called common fund raising options you could ever think professionally. Obviously, you should not take their trust for granted and should always make them involved and take them through your app idea and accompanying business plan.
Taking bank loans: Taking bank loan is a good idea, especially for small developer firms. But such loans are not easy to get merely with an app idea or just a rough sketch of the business plan. Your app idea must be supported with a solid plan, projections of revenue, market research, your existing business credential, track record, etc.
Angel investors: As the name suggests these group of investors are the most rare to find. Basically, individuals who can be interested to invest in projects merely by the merit of the idea on paper are called angel investors. If you know any such investor who has a knack to find jewel of an idea and turn it into mass pulling business, you can always approach him but obviously, it would be better to showcase a prototype of your app when presenting the entire development project in hand and the business idea.
Important steps to make your project lucrative to the investor
Now it is time to discuss on the ‘how’ part of your fund raising maneuver. Obviously, there are certain do’s and don’ts that you should follow, but before all you must remember that raising fund involves a thorough and meticulous approach rather than a loose and quick presentation. Here below we are going to provide some of the most necessary steps to present your app idea, planning and credential in a lucrative manner.
Make the investor remember it
In many cases after listening about an idea for the first time the potential investor just forgets it in next 10 minutes. This happens in most cases not because the app in question do not have any merit. This happens simply because it fails to make an impression with the elevator pitch.
Find the least contested market
The app functionality or the features or the look and feel of the app, all are important but you should only consider all of them after knowing your target audience and respective potential market. Obviously, finding a totally uncontested niche or a market segment is now next to impossible. But at least you can aim for least contested ones to enjoy bigger chances for your app. Investors will show more interest in apps that are likely to face less competition.
App branding should not be overlooked
App branding is not something that you should consider important long afterwards, you’re your app is waiting to be launched. Rather, there must be some kind of app branding maneuver from the idea and your fund raising activities. Creating a pictorial logo that instantly catches the attention or naming the app in an interesting eye grabbing way and just presenting some graphic images of the app to let the investors know how it is going to look like, all these will amount to a preliminary app branding that would not fail to impress.
Interactive demo of the app will be more impressing
If you want to make a solid impression with fewer actions, there is nothing like an interactive app demo. Showing early prototypes has an advantage for the developer in other respects as well. Even if the app fail to fetch any significant investment the feedback of the people can be considered genuine stepping stones in developing and improving the app further. But when it comes to luring the investors more than so called presentation in slides or paper does not make better sense than the actual prototype of the app. They know that there are lot remaining to be developed and the demo is devoid of too many interesting things that the final app will be loaded with. But even then, the interactive demo app developed with the core idea executed brilliantly can make powerful impression compared to other means.
Finally, it is important to take lessons from every ‘No’ you hear and stay resolute in your drive. You can always learn from every approach and know the things at deeper level that can make investors interested or reluctant.