April 17, 2019
Category: Business & Strategy
One challenge that many start-ups face is obtaining finances, so we put together some tips for pitching an app to potential investors. Outside investment can accelerate the development of your app, support programs to market it, and provide a powerful endorsement of you and your app.
Your app idea might have all the elements needed to succeed, but how you share your idea can make a big difference in the kind of funding you receive. These tips for pitching an app highlight some elements that can make your idea attractive to investors. They focus on differentiating yourself from the competition and presenting realistic — but inspiring — goals.
Tips for Pitching Your App: Make Industry Connections
Keep in mind that many Venture Capital (VC) companies and other major investors see numerous app pitches in the day-to-day of their lines of work. So, networking with people connected to a company you plan to pitch can help get a credible introduction and more attention from the start.
There are several ways to make a connection in the tech space of the VC sector. Most VCs employ or retain the services of attorneys knowledgeable about the startup industry. These lawyers have earned the trust of VCs, and networking with them can help show the seriousness of your app idea and the quality of your own character. Likewise, consider reaching out to recruiters in the startup sector as they have well-developed networks already formed and can help ease you into the world of VCs and angel investors. An obvious networking direction is to get in touch with colleagues or work acquaintances, especially if you already know one who has worked with an investor in the past.
Already have the backing of one investor, but could use extra funding for your idea? Try asking your investor whether they know someone in the industry who might have interest in your idea. Investors collaborate regularly with each other.
Tips for Pitching Your App: Let Your Passion Shine
The quality of your idea is obviously important, but so is your ability to share what makes it special. Investors choose to fund the projects of individuals who can convey their passion and purpose.
Keep your pitch simple to ensure that you show off the key aspects of your value proposition, instead of bogging down your potential investor with overly detailed verbiage. Many industry experts emphasize the importance of prototypes in helping show rather than tell. As app developers will point out, most app pitches look less like an episode of Shark Tank and more like a business lunch. A mobile prototype can help an investor visualize your concept while also giving your presentation portable flexibility.
Tips for Pitching Your App: Show What You Know
Charisma and connections will get you in the door, but, to secure funding, an app pitch requires quality content that demonstrates the feasibility of your idea. Tech investment firms and VCs outline several categories that industry professionals look for in a successful pitch. These app pitch must-haves touch on the foundations of your business strategy, your target market, and your forward-looking vision.
Investors want to see an individual or a team with creative initiative and scope that covers how an app fits into your company or startup. So, a successful pitch might include concise statements about your company’s mission, how your app can address known consumer pain points, where your app fits within your specific market, and projections that illustrate financial viability moving forward.
Every pitch should introduce the problem that your app handles and discuss how your app uniquely solves it. Remember to underline how your app differs from the competition in terms of other existing apps or alternatives. How do you plan to differentiate your idea and outpace the competition? Be sure to note what specific market your app fits into and how that shapes your competition.
Other Points Not to Overlook
Just as critical as fleshing out your app idea, presenting solid figures about the funds you need to succeed will help your pitch come across as a realistic concept. Provide your investors with the total amount you need to reach development goals as well as details about anticipated levels of capital throughout your timeline. Investors want to help entrepreneurs who transparently share their information so that they know the requirements of the project they are supporting.
Considering an idea is only as great as its execution, demonstrate to your would-be funder that you have a development plan lined up after securing capital. Advanced developers can work through the process on their own, but, especially with financial backing, many app ideas can benefit from the expertise of professional teams and companies.
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