Getting funded for an app idea that you strongly believe in is every entrepreneur’s dream. And, sadly the recurrent news of tech startups getting funds just on the basis of their app idea, doesn’t really help the case. In fact, it’s more scary than motivating.
To start with, forget about those tech startups and their ideas and concentrate on yours.
And now that your app idea has your undivided attention, let’s slide off another thing – the reason your startup haven’t set its feet off the ground it is because you are being unrealistic. Either you have not started working on your idea or you are a headless chicken running in all directions with no one point destination.
Either way, there’s a long way to go from here.
Let’s begin.
We will take you through the similar layout which we follow when entrepreneurs seek our Mobile App Consultancy service that revolves around ‘How to Get Funds’ issues.
We will begin with why you need funding and then we will move on to the element that investors look for when they put in their funds in an app idea, even though the world is now officially sitting on 5 million + apps (we will spend some time on this point) and lastly we will look into avenues where you can find investors for your mobile app.
Why Do you Need Funds in the First Place
So you have an app idea that would work perfectly in changing the economic scenario of a village in the African subcontinent – as conveyed to you by your family and neighbors.
What you do is make rough estimates of the involved costs and time and approach an investor to get their money. Will this work? No.
You need funds to validate your idea in a real market with real users and find if they even need the solution (or it was a problem that only existed in your short sighted head).
Now, suppose you made an app to solve the real African issues and the users there accepted and saw a life change because of it, what next? Would you be able to scale your app outside of the one village with the X amount of money on you?
I guess we both know the answer to that.
You need funds to first convert your app idea into a full fledged app and then to keep growing it to reach the masses. Now, don’t be naive and think that your app will generate the money for you, it never happens at least not enough to make an empire out of your app idea.
But, if you are one of those businesses who are only creating an app for a local community and that too for social causes and have no intention to make money at the back of it, this article is not for you. So long.
If, however, you belong to the category of budding entrepreneurs who wish to make a name in the industry and earn millions and millions worth of revenue and billions of eyeballs, it is time I let out the secret of what Investors actually look for.
What Do Investors Look for in Companies/Ideas They Fund
The honest but soul crushing answer to this is that they invest in brands and entrepreneurs who have developed a relationship of that sort with them over the years. But, we know the percent is well under 5% and you along with the 95% of the new entrepreneurs are born to fight, so let’s roll up our sleeves and get that app dream of your some money.
Since you have been with us this long, it is time to let you on the secret to getting your desired amount of funds (if your idea is actually as amazing as you think it to be).
The Secret to Getting Funds on Your Mobile App Idea
*Cutting straight to the chase* What investors look for when deciding to credit their money into your – the amazing app idea innovator – bank account is validation.
Validation, both in terms of app usage ability and its acceptance level.
Will touch bases on both the validation points now.
To start with, the route to validating your app’s usage ability, you will have to launch it in the market of real users and that is where your weapon of mass funding comes in – Minimum Viable Product (MVP).
What is MVP?
To test an idea that you strongly believe in, which the world needs and would love, you develop a working, functioning model that you then pass along in the market to test the waters. This working, functioning model aka your guinea pig is the MVP.
You contact team of skilled mobile app developers and create an MVP with the basic features without putting too much of your time, money, and efforts into it and you gauge its engagement and feasibility that then defines if at all you should continue with the idea or tweak it around or the worst case scenario, drop it.
The secret is out: MVP is the tool that investors base their funding decisions on.
Now, the definition of MVP as – A product that is launched with minimal features that best describe the issues and the future of the application and your whole startup – comes with a string attached with many other questions such as – What features to use? How to know if the solution the app is offering even needed? All the features are unique, how can I remove even one?
Don’t worry, we will give you an answer to all your questions
Steps to Developing an MVP That Gets Funded
1. Know What You Are Validating
The first question when you start with your MVP development process doesn’t even start with its features. Sounds crazy, right? Bear with me here.
The first point of validation comes with knowing if at all there is a mass problem that would get solved with a mobile app. Suppose your app idea is to keep exam results and feedback on student’s performance on mobile.
The first question you will have to ask is if at all teachers have the time to first correct the papers and then upload them on the app and then add comments and if the students would be willing to see their results like this instead of in person.
Once you the answer to that, find out if the educational system would be open to a solution as this or if there will be any conflicts.
2. Talk to Your Real Users
Instead of restricting your talk to your aunt who teaches Math in a private school, expand your bases. Talk to teachers all over the city – of schools that are maintained by some private company and of those who are operating within the meagre means offered to them by the local government.
Find out the pain points in the process that starts with a teacher correcting the papers and ends at students getting feedback on their performance. Make a list of points that can be solved through mobility.
3. Know What Features to Add
Follow a Deconstructed Pareto Method to Decide on the Features that your MVP Should Consist of.
Once you have identified the exact needs your user group, and have a list of features – both primary and supportive – that would solve the need perfectly, ready on you, use the 80/20 Pareto Analysis rule to refine the list of features further. Keep the 80% features that would solve all the problems as your MVP features and keep the 20% features as a part of future updates.
This way you will be able to hit two birds with one stone. A. You will be giving your users exactly what they need and B. You will be adding the additional features, which they also needed, later; which would create your image as a brand that really listens to what its users asks of it.
Now that you know what goes into the blood and bone of a tool that would help generate funds, don’t wait. Get out of your chair and hit your app market and then don’t wait further when the app is launched.
As long as the buttons work, the app is functioning, and the user is able to move within as you want them to, launch the MVP.
With this, we have now come to a point where we answer the one question that is on every Entrepreneur or Start-up’s minds – Where to Find Investors to Fund My Mobile App?
Unless you are not waiting to hearing back from the Shark Tank producers to invite you on the show, here are the four more attainable and easy to reach platforms to attract investors and raise funds for your app
- Kickstarter
- Indiegogo
- AppBackr
- AppStori
Here we go. Now you have all the insights that you need to get started with to raise money for your app idea.
Go on now, go get big.