One of the key challenges for app developers has to be how to contact investors. Usually, the individual will have the right idea as well as the strategy for rolling out the app. However, a majority will lack the funds to develop it. This means that they will have to seek funding from investors such as crowdfunding, angel investors, or venture capitalists.
On paper, it may sound easy. I mean, isn’t it just a matter of pitching the idea? Unfortunately, it is not so easy in the real world. You need to convince them that it is a worthy investment, show them the right figures and most importantly tell them why it is beneficial to them. The following steps will increase your chances of getting an investor that will help you in developing the app:
Create the perfect brief
Truth is that angel investors and venture capitalist receive lots of offers from prospective app developers. Unfortunately, many don’t have time to sift through each proposal. To stand a better chance of your app development proposal being picked, you need to create a good summary about your company as well as the app, present briefly your firm, what your app is all about, what problems it seeks to offer solutions to, the return on Investments(ROI) it offers to the investor and other things of value. By just reading the summary, the potential investor should have a clear picture of the app. a good one will make him/her interested and will therefore go through the proposal.
Come up with the perfect proposal
One mistake that many app developers make when intending to contact investors is not having the right proposal. In fact, many will stop at the Company Summary, which in most instances will not be detailed enough. A proposal is what will offer deeper insights to the investor. It will talk at length about the app, the different phases of developing it, the expected time for the entire project, the parties involved, cost, and much more. While you can find sample proposals, it is always best to customize one that matches your app and is tweaked to align with the target investor. For instance, if you are developing a mobile app, you should talk a lot about mobile technology, mobile-friendly websites, and related content.
Create a Good Network
Networking plays a vital role in sourcing funds for the development of apps. Unlike the earlier days, where it was more of a word of mouth or face-to-face meet up, nowadays you can do it via social networking. Being in the right social media circles will help you push the idea to an interested person. A potential investor who looks through your LinkedIn profile may notice your proposal or interest. You don’t need to be really outspoken in social media to be noticed. All you need is being in the right forum and you never know, one of your friends may be the one who pushes the idea forward. Participating in social gatherings, seminars, and events is also another good way to meet and contact investors.
Make yourself more noticeable
There are many people with great apps that could attract and contact investors easily. However, many have done little to stand out. And as we know, many apps out there need funding. Besides creating an app design and summary that stands out, registering yourself in well-known platforms such as Crunch Base helps you in making you more noticeable to potential investors. You should create a profile that specifically targets the Angel investors and putting it out there for the world to see. Talking to other like-minded individuals will help in improving your profile and learning about the best places investors go hunting for new ideas.
Before you contact investors, Research, Research, Research
Finding funding for your app is more than just pitching an idea or writing an exceptional proposal. You need research to know what kind of investors will suit your product, how to single the best from the rest, and what you need from them. Trying to convince a person who focuses or has interest in something totally different from what you are focusing on will be more challenging than selling the idea to a person who has a passion or has funded similar apps. It takes time, effort, and research to find the best fit.
Cold contacting investors
Cold contacting investors may not be as popular as it used to be some time ago. This is partly attributed to the growth of social networking that is more effective. For example, rather than trying to get an investor by walking into a physical office, you can try reaching out via platforms like InMail. Platforms like LinkedIn are also a healthy ground where Angels look for good opportunities. Nevertheless, cold contacting can still work if combined with other alternatives like LinkedIn. You first put yourself out there, create a nice profile in LinkedIn, use an Angel List to identify likely investors and keep the credits on InMail for future contact. Once you get in touch with a funder, you can then follow-up with a personal meet-up request.
Create a catchy headline or title
Angel investors are human. They will be excited by catchy headlines that stand out and will more likely open a catchy email than one with a boring or bland headline. Whenever you are sending an email or proposal, it is critical that you ensure the subject has a “Punch.” By just reading it, a person will give it a second thought and become more curious about it. This is especially important considering that you probably are not the only one pitching the idea or looking for funding. You may have a great app development idea and proposal, but if the investors never get to read it, then it will just remain that. An Idea. Looking at other app proposals, talking to other app developers, and seeking professionals proposal-writing services helps to make you stand out.
Keep the conversation professional
Once you have managed to get in touch with an investor, the next step is beginning the conversation. How you start will either make or break you. For example, informal greetings are a turnoff for many investors. You should also avoid “Salesy” language as it waters down the whole idea of funding the app. Begin by talking a little about yourself, your app, and why you need assistance from the contact person. You should embrace a conversational style of communicating which give the investor the chance to ask you more about the app design and development, what is holding you back, what app design agency have you hired, the strategy you have, and what is in for the investor. Remember, it may take time for the investor to get back to you. You, therefore, should not appear too pushy.
Finding the right investor for your app creation and development can be a tough journey. First, you need to fully convince them that it is worth investing in. secondly, you have to find someone who shares the same vision or can align to the app. Third, you should be certain that the target party is the best fit for the project. The last thing you need is an investor that seems to cause more obstacles or criticizes too much yet he/she has little understanding about the app or app development process itself.
By following the above guidelines, you should have an easier time hunting and catching a worthy investor. Nevertheless, it requires lots of dedication, good pitching, and lots of patience if you are planning to search or contact investors. With a proper approach, it can be done in a stress-free manner and within a short time.