6 Ways To Raise Funds For Your App Startup In 2021
Summary: Even after all the changes in the world economy and the landscape of the entrepreneurial field; the processes of raising capital for a tech startup remain the same. Investors are usually in search of startups that offer unique, irreplaceable value-added propositions. You probably have an app idea that can appeal to investors, but in this pandemic- ridden situation, they need some convincing. So, how will you do it?
Those with an entrepreneurial attitude will inevitably encounter a point in their lives when they come up with an app idea worthy of an investment. While only a few dreamers like you exist in the world, all of them suffer from one significant problem — the lack of funds.
Only one ray of hope remains for every entrepreneur without “the big money” in their pockets, and it’s to attract the attention of investors. Now, optimistic folks think that an investor won’t be able to resist pouring money into their app idea if it’s good enough. Sadly, the case isn’t as simple as it seems.
You must do a few things to raise enough funds and be able to hire customize IT services and solutions company to handle the development part. Here are a few suggestions:
1.) The sales pitch has to be immaculate: When it’s time to get in touch with an investor, you must acknowledge the fact that many others like you already approached the person for money. Your task is to be successful where others failed. Therefore, you have to sharpen the sales pitch before you even bother describing what your app will do. For that purpose, you have to prepare a pitch deck for your startup. Don’t forget to go over all the fundamentals of raising the money required in running a business, including everything about growth and scaling strategies. Simply promoting the purposes that your app will serve won’t be enough to win over investors. You must present it in a way
that the investors start connecting with the app from the idea stage. Additionally, one has to be confident about what they say.
2.) Partake in application competitions: There are app contests that you can participate in if you feel that your app idea is powerful enough. Partaking in these competitions can prove exceptionally beneficial. These events take place throughout the world where the best idea wins and receives enough money to fund customize IT services and solutions company for the development process. Even business incubators and angel funds arrange a few of these contests. You can probably imagine how competitive these events can be. Apart from winning one of them, you also have to make an immensely strong sales pitch so that you can impress your investors. Even your app idea has to possess groundbreaking capabilities.
3.) Try crowd-funding: There’s a common way of acquiring funds these days called crowd-funding. It incorporates looking for resources through unique ideas and platforms like Indiegogo, crowdfunder, crowd supply, Kickstarter, etc. In technical terms, crowd-funding is about raising small amounts of money from a huge number of individuals for a specific purpose. Crowd-funding is a household name among established business owners and entrepreneurs, but it also comes in handy for raising funds for various events, social causes, and the like. Crowd-funding utilizes social media platforms and the innumerable subscribers who flock there. Also, crowd-funding websites bridge the gap between entrepreneurs and investors.
4.) Loans from banks: Almost every bank or other financial institutions are more than willing to provide loans to entrepreneurs for their small business. Then again, acquiring a load to build an application for the first time can be tricky. Nevertheless, if you manage to present a robust business plan powered by meticulously conducted marketing research, revenue projections, budgeting, and other particulars, it may be easier to convince the bank personnel.
5.) Hardcore investors: You will find venture capitalists that are willing to provide you with the money you need for your application. With the funds, you can hire a software development company for your project, but these investors will want to know the risk/return ratio first. Understandably, you have to convince them that your app will achieve what you expect, alter the lives of hundreds and thousands of people, and attract downloads. You also have to explain how much revenue you’re expecting. Hardcore investors will analyze the return based on the risks that you will face. After that, they will determine whether they will invest or not. Angel investors, on the other hand, are the ones that fund business owners for their concepts or ideas, particularly the ones that didn’t materialize. If you’re planning to target angel investors, then you should think about presenting a prototype version of the app. It will be easier for you to gain their trust then.
6.) Prototype creation: If you have enough for a prototype, then don’t hesitate to work with a software development company and create a prototype of your app idea. It will aid you in securing funds for the upcoming development stages. When you have a simulation of something already available in the market, convincing investors will be relatively less challenging. After all, they will realize that you’re confident about what you’re doing. Apart from that, if you launch a trial version, and if users like it, you will be able to prove to the investors that your app is already in demand.
Wrapping it up
Acquiring money from investors for your mobile app startup requires you to possess an appropriate concept. Networking skills will also come in handy in this task. So, don’t hesitate to contact as many investors as you can. No matter how many arguments an investor throws in your path, you must conjure counter-arguments without getting irritated.
