How to Raise Funding for Your Mobile/Web App Prototype

The idea of coming up with an app based on the need for making it a reality. Many people have come up with app ideas thinking that it will be the next trendsetter. However, is not always the case. When looking for funding, investors want to see more than just the idea.

Raise Funds for Mobile App Prototype
  • Validation on how the app will be acknowledged later in the market.
  • It minimizes the time and funds for development
  • Helps one to know the user’s preferences and need in order for them to make the necessary changes.
  • Makes it possible to test on real users before developing the real app.

Prove Your Concept

Investors invest in ideas and businesses that have proof of their concept. They like to see that it more than an idea. Showing them how it works will make them feel more confident to invest. Even in our day to day lives, you find that more people will trust buying things that they can see rather than buy things that someone told them about.

Know Your Market

Market research is very important in building any successful business. Most people think that research should be done when you get funds for your prototypes, which is wrong. No one can put their money in your idea if you do not know what you are dealing with. First of all, there is a huge possibility that your app is not unique.

  • Target market analysis
  • Marketing plan
  • Price analysis

Show Commitment

Practice makes perfect, that is the quote that should be ringing in your head before going to talk to investors. If you think you have everything in place go back and check again. Investors not only invest in your business, but they also invest in you. Make sure you do your homework before pitching your idea.

Find out How Other Similar Apps Have Acquired Funding

It is hard to convince an investor in a meetup or an event to fund your app. A better way to go around it is to look for companies that have funded your competitors. Organizing and signing up to every meet up is a waste of time. You need to be smart to get ahead. Contact your competitors to find out where they got their funding from.

Connection

Secure investors listen more to someone they are familiar with compared to a stranger. For you to be ahead of others who are also looking for investors, collaborate with someone to introduce you. If your family or friends have proper connections, you are in luck.

Find the Right Investor

Finding the right investor is easily said than done. The chance of hearing more No’s than yes when pitching your idea is very high. At times you will have to turn down investors if they undervalue your idea.

Get to Understand the Investment Basics

The investment process should not be taken lightly. When someone agrees to invest in your business, they expect you to follow your outlined business plan. They also expect you to return their investment with an interest.
Most investors invest in businesses that are already working. You need to familiarize yourself with the basic and establish the capital you are willing to take.

Crowdsourcing

Raising funds does not necessarily mean that you have to pitch your idea to a room of investors. You can easily start a campaign using Kickstarter and focus on promoting it. Many entrepreneurs have managed to find capital funding through crowdsourcing.

Conclusion

It might not be easy to get funds at first but once you get it, business will get easier. Funding with help your business come up with app feature faster, market your app effectively and build a platform for future testing of ideas and find a strategic market for the product.

Tech lover, photographer, a guy who loves Social Media.