A great business starts with a great idea. But is an idea enough to setup a successful business? The answer is clearly no. Infact you should also focus on How to raise funds for an app? There are many aspects for a startup- depending on the category of business. As we are into app development, we’ll here discuss the idea of fund raising for an app.
The first thing for a business is obviously the idea. After an innovative idea, what comes next is how to raise funds for an app? You can find hundreds of ways segregated from different sources that can help you figure this out. But what makes it more important is the quality and weightage of each point mentioned under the topic. You have to be very wise in terms of investment and choosing an investor for raising funds because it can lead to tremendous downfall.
Investments and funds are like a wheel of fortune, it can go in any direction- immense success or failure. To play with this many things need to be kept in mind like the apps you’ll be developing, how prepared are you? How much will it take? How many people are working with you? What makes you different from the competitors? etc.
As a process is to be followed in order to raise funds for an app, we have tried to collect significant aspects in this post that are to be understood before reaching to the final answer of How to raise funds for an app?
Lets now discuss the points that can be helpful and important for raising funds for in the app business and startups. It goes as –
1. Why and who gets funded?
To start with, lets have a brief idea about who gets funded. Every business have a set of their own desired requirements and motives. Some have a small team, idea and plan while others have a huge planning, great idea and a large team. So, raising funds for an app is directly proportional to the scale of business that you fall into.
You will be preferred if you prove that your idea will make a difference in any particular domain that you are stepping into. The investors also look for people who they find more capable and oriented with a great goal plan.
So, if you want to raise funds, it is necessary to establish yourself in the market place as the one who can stand apart without being lost amongst the competitors. After this only you work on How to raise funds for an app?
2. Elevator’s pitch is your image, make it the best.
The only way to reach your investor and to convey your ideas to them is through your pitch. Make it the best presentation of yours. It should leave an impact on the investor’s mind- keep it precise, impressive and easy to understand. Be clear about your points and hone your ideas and knowledge about the topic.
3.Determine the Market Place for your app.
When stepping into the business, analyse what place will be the best for your app. You should understand it well with respect to the competitors present in the market. This can be done well with the help of the Blue Ocean Strategy. It helps to understand the market scenario which can be worked over in order to get your place. It will also help you to attain a better uncontested market place in the near future.So, basically before jumping directly to raising funds for your app, first have an in-dept look at the market. This further simplifies the question of How to raise funds for an app.
4.Some efforts- worth the pain.
If you want to reach out to investors with your app, show that you have made efforts to earn their interest. This can be done by including a actual domain name and some interactive materials like a logo design. This will have a mark of your sincerity and dedication on the investor and can be helpful for raising more funds for your app. To gain the confidence of anyone, you should hone all that you portray. For this, make some efforts and be clear with all that you present.
5.Know all that you can about the Fund Raising process.
In order to explain your requirements and to have an interactive conversation, you yourself should be well versed of the topic. So when you are already hunting for answer to How to raise funds for an app, you should first gather information as much as you can from the real-time experienced people and from other available sources. Obviously it takes time to master an art, but you should atleast be clear of the basics which includes the fund raising process, the different stages before raising funds for your app, rounds that you have to go through, etc.
6.Seed stages in financing.
What are seed stages? Why are they important? These are the questions that pop up the mind of any individual naive to the business domain. But, let me specify, to raise funds, a person should have an idea about finance and investments so that it can be helpful in the longer run of business. To understand it further, you can read about seed financing where you can learn about different stages in the process.
To state in brief, there are various seed stages like The seed round, Angel, Series 1,Series 2, and so on. These stages basically implies the different levels of the fund raising process of an app that one has to go through before getting to the desired point.
7. Hunting the right investors.
When it comes to raising funds for an app, it also matters to choose the right investor who can be targeted. As investors also have there set of preferences, they too keep on looking for the right choice for their betterment. So, think before you approach some to raise funds for an app.
8.Be prepared with the best and attractive app demo.
The demo of your app will play a great role because it is something released before the actual app. Since you are still in the early phase of this venture, you can also present your pitch with an app demo. It will surely have a different and more efficient impact on the investors. Through this, you can incline their interest to your idea and may be it can work well for you. It is worth a try.
9.Learn and learn more.
You should be very clear with all the concepts related to your app idea. It will help you in raising more funds for your app if the person finds out that you are quite dedicated towards your work plan. It will surely be in your favor. And it will also be helpful for your business if you know more of details about how to raise funds for an app and other topics including in raising funds.
10.Don’t fear “NO”.
Yes in this process you will hear NO quite a many times may be, but you should just keep on moving on with other ways. Some of it will work for sure. No one gets success on the first step. Just keep working patiently.
These were the points that are to be considered while you are planning any app launch. Although they can just help you with raising capitals, the main role play here is your app idea which is the key to spread your app to the app stores. At times, people bootstrap and raise some funds themselves for their app which can help you to gain the confidence of investors so that they can raise more funds for your app.
Hopefully we made the question “How to raise funds for an app?” clear to a greater extent and the next time you get stuck you can surely get some help here.
If you think any other point should be included in this post, your suggestions are always appreciated. Please right us back at [email protected] or mention your views in the comment section below. Your voice will surely be heard.
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