Updated: June 16, 2022 
Introduction
It takes more than an idea to create an innovative mobile app. It is also critical to invest in the project. Investment is required for product development, marketing, and market research. This investment is made possible by securing funds from mobile app investors and being willing to take risks. But, what if you don’t have the funds? You must find out how to raise money for an app startup from investors.
As you might expect, this is a difficult task. To begin with, you are not the only one who wants to see your startup funded. Furthermore, no one enjoys parting with their money, including wealthy entrepreneurs. Before proceeding, carefully consider your strategy. Let’s look at how to find mobile app investors for your startup.
An Overview Of The Different Types Of Startup Investors
There are several ways to find an investor for mobile app startups on the market. Founders should look for app funding in different places and approach them depending on the app idea, app funding needs, and the stage you are in. Let’s look at the different types of startup investors.
1. Friends and Family
The individuals closest to you are the easiest to persuade to build your app concept. Usually, it is your family and friends who can help you at the start of your business. Using this money, conduct market research and develop a prototype to present to potential investors. Other solutions should be considered if you wish to go any further.
Invite relatives or friends to become co-founders of your startup. When someone believes that your concept is promising, they will most likely invest in it. You may also enlist the assistance of individuals beyond your group, if you have faith in them.
2. Bootstrap Funding
Bootstrap means subsidizing the app company first and then looking for investors afterward. The early stage offers several benefits, including complete corporate control, administrative direction, planning and execution, financial and spending monitoring, etc. This ensures optimum investment capital flow early in the app development process. Bootstrap financing is a rigid regimen that requires careful money management at first.
3. Best App Contest
App startups are evaluated on certain criteria, and investors looking for app ideas may find what they are looking for at tech conferences or competitions. Various corporations, institutions, angel investors, and other investment platforms hold tech and innovation app competitions. This inspires and leads investors to discover practical app ideas which they can entirely finance, from the app software development process. Winning concepts get immediate access to complete app startup financing.
4. Crowdfunding
Crowdfunding for app development involves people working together online and via other social media platforms. Crowdfunding projects may be challenging to operate if you have little time, effort, or marketing cash, so make sure you build a strong team to support your crowdfunding initiatives.
5. Angel Investors and Venture Capitalists
Start searching for venture capitalists and angel investors if your mobile app company requires substantial funding. The majority of these investors will provide a significant sum of money. Individuals are often the most prominent investors in app development. Venture capitalists, on the other hand, are often businesses. To attract an investor for mobile app startups, you must first demonstrate that your concept is worthwhile.
6. Bank Loans for Businesses
Loans have always been and will continue to be a source of capital for creative app startups. However, most lenders’ faith and trust are primarily based on how realistic and actionable the app concepts are. Small, medium and large-scale business loans are straightforward since the company is declared, and collateral is obtained or provided. This indicates that using real estate as a loan guarantee is the most straightforward approach to getting business bank loans. To provide app funding, banks and financial institutions want assets as loan guarantees. Furthermore, accommodative government policies include low-interest startup loans, investment tax breaks, etc.
7. Pre-Seed Funding
Private networks will finance the company in a classic bootstrapping situation. At the outset of your business, you will develop and evaluate your concept. Before the pitch presentation, a part of the funds is used to conduct market research. A prototype may be built at the pre-seed stage if there is adequate money. Startup firms sprout like mushrooms, and many of them need money to develop mobile apps. As a result of the situation, the market has become quite competitive. When you provide more than just a concept and some preliminary calculations, your chances of attracting investors for a business grow dramatically.
8. Seed
Significant sources will provide the initial round of finance. Your network may help you secure app funding beyond your savings. Angel investors may turn up in the pre-seed stage, but they are more likely to show up at the seed stage. The existence of venture capital companies has also been reported in recent papers. At the least, you should set aside cash from the seed stage to hire more experienced mobile app developers. After the minimum viable product (MVP) is developed, a seed-stage idea becomes feasible. Make the MVP accessible to the general public and investors as soon as possible when it is completed. Your concept will almost certainly produce income at the seed stage.
9. Series A
Series A investment is the foundation for a startup’s aggressive growth. As a result, venture money makes sense at this point in the process; venture capital companies often invest in high-growth mobile app development enterprises. In venture capital, Series A is the riskiest stage for investors. You will need a compelling elevator pitch to acquire app funding at this level. It will have a higher chance of succeeding after it has passed this stage.
10. Series B
A decline in survivorship affects Series A the most. Your app is most likely to succeed if it has reached Series B. Do not, however, take this for granted. You may grow your firm quicker with Series B capital. At this time, the value of your stock rises, allowing you to sell fewer shares to venture capitalists. You also get to keep control of your business.
11. Series C
If your company is still running, it is undoubtedly alive. In other words, your firm generates enough revenue to meet your costs without the need for extra capital. Each round after Series B fundraising aims for large-scale development, significant advancements, and more.
How Can A Mobile App Project Find Investors?
Investors only finance chosen initiatives and therefore, around 75% of businesses do not succeed. The money must be worth it to the investors. Make an appointment with possible investors to boost your chances of success. Here are some ways to find investors.
1. List Possible App Investors
To begin, consider how you will find an investor for mobile app startups. Is it a good idea to invest in venture capital? What about angel investors? Carefully consider the answers to these and similar questions before you start making a list of potential app funding investors.
2. Calculate Your Budget
Before contacting mobile app investors, calculate the estimated cost of developing your mobile. Only after knowing the app’s budget can a successful startup entrepreneur pitch to an investor.
3. Assess the Situation
Let’s say you come up with a novel app concept and see its potential. But the investor does not share the same viewpoint. Prepare your project’s statistics to persuade them. Study the competition to find out where they fall short, and describe why your solution is superior to others.
4. Focus on Branding
App investors want firms with a positive reputation and strong branding. The logo, color scheme, and philosophy are all part of the company’s identity. The integration of your brand into a product should be seamless. Branding helps investors better visualize your concept.
5. Conduct Marketing Campaigns
Start your product promotion early and focus on the following:
User testing of your concept
Locating potential customers
Contacting interested investors
Finding out what mobile app investors want to see
Ensure that you do not begin marketing after the introduction of your product. Instead, focus on this beforehand.
6. Be Enthusiastic
The founder is the driving force behind a mobile app development startup and is crucial to its success in many ways. Prepare yourself by ensuring you are entirely enthusiastic about your project enough to see it through to its successful launch and operation.
7. Understand the Market
It will help to thoroughly understand the market. This includes its key players and competitors, and other relevant project indicators, such as the number of potential users interested in the product.
8. Your USP
Investors look at many startups every day. It is crucial to determine what distinguishes you from the others. Conveying this to potential investors will create a lasting impression and give you better chances of finding an investor for mobile app startups.
9. Forecasting the Economy
An audit will request all financial indicators to assess your company’s prospects; ensure you include the cost of acquiring new customers.
10. Professionalism is Essential
A prospective investor for mobile app startups should know that your team is made up of experts and enthusiasts. Be sure to hire experts who have a lot of experience and are passionate about the idea of your project.
Conclusion
Your work does not end when you secure funding. You must continually add new features to your app to make it more engaging and expand your investment opportunities. Having a skilled app development company on your side will assist you in creating a successful product. We provide a wide range of solutions and services, from mobile app development to custom software solutions.
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