Raising money is hard—especially for a newly created app. Here are some tricks-of-the-trade to help the next time you need to raise money for an app:
Prove There Is a Need
Clearly define the problem your product addresses then explain why your product is the key to solving that problem. Your goal is to prove not only that the problem should be solved, but that it NEEDS to be solved. Proving there is a need helps prove there is a viable market to tap for your product. And the market? That’s where the money’s at. Remember: A potential investor will always be concerned with your concept’s clarity and their potential ROI (Return on Investment) – any holes in your explanation of the problem or the reason it needs to be solved will make them think twice before investing in your app.
Establish Credibility through Teamwork
A great idea is only as strong as the people behind it. Though tackling a business challenge alone may take you a few steps forward, building a core team will put you miles ahead. Whether your team consists of partners or advisors, the people you bring on can help expand your knowledge-base and increase the reach of your network—both of which will make your business look more credible to investors. Not to mention, having others to share the workload with will help your sanity in the long run (trust us).
Choose Investors Whose Values Align Yours
Make sure that you are a good fit for the investor and the investor is a good fit for you. Most investors have a defined area they like to invest in and rarely venture (pun intended) outside of that area. Though some may argue that money is money, strategically pitching your product to people who care will save you time and increase your chances finding people from the get-go who believe in the app as much as you do.
Maintain Investor Relationships
Getting investments for an app is never just about the money. The relationships you’ve built with investors should not end once money exchanges hands. Keeping your investors in the know is a crucial and sometimes underestimated part of establishing a business. Actively making your investors feel like they’re a part of the team (whether they ask for it or not) will help nurture the relationships you’ve created, and could inspire more investors to give money in subsequent rounds.
No doubt about it: raising money for a new business can seem like a full-time job—and a hard one at that! However, if you follow these steps when promoting your app, the process should go much more smoothly over all!