You have an amazing idea for an app. The people you’ve talked to about it agree- it could turn into a profitable business! You’ve done some research, read about the cost to develop an application and what questions to ask when hiring a developer, but are lacking the funds to bring it to reality. How do you get funding for your application?
First, realize that when you ask for funding, you aren’t just getting free money. It’s not a donation. You must give to receive. Sometimes, like with crowdfunding, you may only need to give a shoutout, write a thank-you note, or provide a free download to your application. When you ask for angel investors or venture capitalists to back your company, they will want a bigger slice of the pie. It’s common to give a board seat or percentage of the company in return for their funding.
The people supporting you are taking a risk and betting that they will come out ahead. You need to show them you are serious, have done your research, and deserve their investment. Whether you apply for crowdfunding, an angel investor, or a venture capital firm, here are some tips on how to be prepared.
Know Your Project
You need to have a good idea about how your application will function and its users. Who is going to use your application? What sorts of issues do they have? How will your application solve their problem? What sorts of features will your application need? What platforms will you target?
Know Your Market and Competitors
You will also need to conduct research on the current environment your application will be competing in. What demographic are you trying to reach? Are there similar products readily available? Who are your top competitors? What do they offer that you don’t? How does your application stand out? How will you promote your app?
Monetizing Your Project
How will you make money? Will users need to pay to download the app? Are there in-app purchases or ads? Have you made any money yet?
Know What You’ve Got
Where do you stand currently? Gather all of your resources together and take an inventory. What business or technical knowledge can you and your partner(s) bring to the table? Do you already have a domain, social media accounts, design, logo, wireframes, or proof of concept? Who has stake in the company? Do you have a legal entity? What can you show to demonstrate that you are moving forward?
Know What You Need
Now for one of the most important part- the ask. What is it that you need? How much money are you wanting? Do you also want their professional guidance? What are you offering in order to receive it? How will it be used?
Take all of this information, organize it, and create a pitch deck. Create an elevator pitch and practice it until you sound smooth and confident. Now you are prepared to present to investors and provide the information they need to make the decision to back you.
Even if you aren’t looking for funding, asking yourself and your team these questions and gathering all of your resources in one place is a good idea. It will help you evaluate your application and have a clearer understanding of how to position it to succeed. You may find that the market is saturated, your user base is too obscure, or your application doesn’t fill a need. That is OK! The exercise has done its job- organized the project in such a way that its potential can be easily evaluated.
Need Help Getting Funding?
Metova can assist you with all of this. From strategizing and business plans to wireframes and proof-of-concepts, our team can transform your idea into a proposal to help you get it funded.