Startup Investment Checklist: 8 Tips For Pitching Your Idea And Getting Funded
In a world of creativity and innovation, proper startup investment stands among key problems young entrepreneurs meet while developing their bold business ideas. New apps appear every day, and it becomes harder to produce and develop innovative concepts in terms of quickly evolving mobile app market. According to statistic research, in Google Play alone the number of apps available has risen from 2.13 to 2.57 million apps in 2019 representing over 20 percent increase. Being pressed by circumstances business beginners should find uncommon ways of attracting investors for app development, like crowdfunding, donation-base, or elaborated pitching.
In this article, OpenGeeksLab will reveal key startup investment ideas to present your venture’s uniqueness in its best and maximize idea’s success.
Is Your Business Concept Worth Proper Startup Investment?
Giving your idea an objective assessment stands among crucial factors while pitching app project to potential investors.
There are four basic criteria to check if your venture is ready to be pitched:
1. The app solves an urgent problem
The simplest strategy to find investors for startup and get funding implies solving the issue that troubles customers. However, despite outer simplicity, it may occur a real challenge to develop an innovative concept meeting current app investors demand.
2. The app optimizes already existing solution
Providing a different perspective on existing solutions promises funding for app startup as well. It usually includes app optimization or certain improvements, concerning outdated functionality upgrades, new features implementation, or design updates that make app more user-friendly or accessible for inclusive customer groups.
3. The app ensures profit
A win-win option for startups looking for investment is promising guaranteed profit. If your app is about paying off in the nearest future and bring additional benefits, any capitalist will gladly invest money into it. All you need is to prove its market success with well-designed business plan.
4. The app proves its productivity in the long run
Showcasing long-lasting results represents one more opportunity popular among startups looking for investors. Many companies bet on building loyal client base, acquiring firm market position, and creating positive venture’s image, thus they tend to invest in startup apps guaranteeing output relevant in the long run.
How to Effectively Pitch Your Business Idea to Investors and Get Funding?
1. Introduce yourself
Company’s name represents a label startup investors must know. Create a recognizable image of your business with successful products you have already rolled out, brave ideas, strong efforts and enthusiasm you show while pitching the application.
2. Meet the team!
Team composition is of no less importance: make emphasis on experts involved into current venture, their diverse experiences, contribution into idea processing, successful projects, etc. Knowing personalities helps in successful establishing developer — investor relations.
3. Define the problem & offer unique solution
Stressing the problem you intend to solve stands among key points while app pitching. Clearly stated problem with customer pain points discussed highlights relevance of app solution you intend to get funded.
While exposing the problem analyze solutions that have already been developed. Explain key differences between your app idea and existing examples emphasizing innovations you offer. Elaborate a detailed plan that will give potential investors a vision of how you will implement concept into life.
4. Hit the big time!
Choose the right time for start. While pitching app venture, tell investors for app development why now is the optimal time to fund your app. Emphasize problem’s urgency and market needs to sound convincing enough.
5. Estimate app market potential & define your place within the system
Profound market research is a must-have stage for startups looking for investment. Evaluate the size and development level of market segment you want enter, define target audience, and build grows chart illustrating app’s success after entering the niche.
Knowing own competitive chances is crucial while market analysis. It allows highlight strengths while presenting app project to investors, as well as explore and correct possible weak point long before rolling out final application version.
6. Prepare a convincing business plan
Elaborated business plan is a base of any project success. To be convincing enough it must answer one key question: how can we make money out of good concept? Make a path from idea to profit visible to get funding for app startup.
Thus, any successful business plan includes marketing strategy and sales plans directed at achieving goals in shortest period possible. Besides, figures always matter, so paying attention to prices also constitutes an important part of funding estimate.
7. Build a realistic budget
Presenting a budget one must always take into consideration both sides of money issue. First, conduct a profound analysis of capital already involved into project to calculate the investments ‘from outside’. While pitching budget to investors, emphasize minimum funding an app needs to be launched, and possible profit a capitalist gets funding your app.
Second, define key milestones in fund distribution and take care of other funding opportunities. E.g., crowdfunding may become an additional funding source to promote initial app concept and make it visible for developed companies or investors for app development, while frameworks, services, or toolkits free from charges (e.g. Bootstrap, Xamarin, react native, etc.) reduce development process expenses at initial stages. Besides, think over equity fund distribution: decide on the part preserved by company itself and the part sold to startup investors.
While budget planning, startups looking for investors should not forget about possible funding risks as well.
8. Take care of copyright issues
Legal issues also play an important part while product funding pitching. Startup investors should be warned about possible risks connected with copyright details and intellectual property used in product development process. This information ensures investor’s legal status and is crucial in cases of emergency.
Don’t Go Without a Prototype
Having a working application mockup is always a benefit while your business presentation. Direct interaction with the product in most cases has a convincing impact on startup investors, as capitalists usually fund tangible results.
Prototype app may not be a round solution with perfect optimization and all functional scope implemented, though it must demonstrate the features you bet on. Developing app prototype, one should emphasize innovative solutions that will distinguish the app from other ideas. Selected features must show application at its best and, if possible, produce a wow-effect, ensuring funding through appealing first-hand experience.
In case the prototype app is not ready yet, do not forget about visual aids like design concepts, drafts, or schemes concerning future app.
Consider Perspectives Today
Finding trustworthy startup investment source became a real challenge on modern market. Consider the insights listed above to upgrade your project pitching strategy and do not feel shy to ask us for help! With profound experience in narrow market segments, we can find hidden opportunities turning your bright application idea into successful business project. Besides, our proficient experts are always ready to create a product that will embody your most ambitious expectations.