Have you got an awesome idea for a mobile app? Do you think it will surely attract a broad range of users?
A lot of people think that resources and tons of money are given to people with brilliant ideas. This stereotype may be cultivated by news and articles about startups that raised millions. It creates an illusion that a great idea is enough and investors will line up to give their money to you. The reality is completely different.
Statistics say that most startups collapse at an early stage. In fact, 123,300 businesses fail every day. It doesn’t sound inspiring, does it?
If you’re still willing to succeed with your mobile app idea, then you should understand the science of mobile app pitching to attract investors. So here’s how to nail your pitch and make your idea irresistible to investors.
Tip #1 Research your app’s niche
Sometimes it feels like there’s an app for everything. That’s what makes investors think twice before funding another life-changing app. That’s why it’s essential to research the competitive landscape of your app’s market. Find out what kind of apps other companies are offering. What are their strengths and weaknesses?
Take a look at similar apps from companies in the same or other industries to make sure your idea isn’t just replicating another company’s offering. This preparation is crucial so that you can prove the authenticity of your offering to investors.
#2 Identify frustrations and pain points of users
A lot of users have the ‘if it’s not broken, I’m not going to change it’ mentality. Offering a new product to the audience you are basically asking a consumer to switch from their current solution.
Any switch assumes a comparison: a consumer has to stop doing something and start using the new solution. The user perceives they have to give up a whole variety of habitual things for the risky new solution benefits. Based on the knowledge of users’ pain points, you should illustrate how an app will solve those pain points and give clear reasons why your product is much better than their current solution.
Tip #3 Define a clear value proposition
It may be so tempting to talk about every feature and possibility of your app. However, focusing on features rather than on clear value when pitching is a huge mistake.
Investors, like most people, don’t really want to listen to a whole list of features your app has or will have. What they are interested in is the unique value your product delivers to people. That’s why you should focus on defining a clear value that solves the pain points of users.
‘What problem are you solving?’ or ‘What makes your app different from other similar apps?’. These are the questions that investors are going to ask you. They don’t want to fund a general concept of another promising-to-change-the-world app. They want specifics: who the audience is, how the app will fix the pain points of the audience, and so on.
Tip #4 Present a road map
Unlike huge businesses, startups do not need a 50-page detailed business plan. But it doesn’t mean they don’t need a roadmap.
A roadmap is a visual that illustrates the evolution of your product over time.
Basically, a road map is a reference point to make sure what you’re working on is serving a corporate strategy. It’s a tool that can clearly illustrate whether your app is a worthwhile investment.
Your roadmap doesn’t have to include every idea or feature your app has. It doesn’t need to be fancy or look gorgeous. It doesn’t necessarily have to be digital. In fact, your first iteration of your product’s strategy can even be a napkin-drawing.
Tip #5 Present your revenue model
Do you know what investors look at with curiosity in your pitch? They want to know how you are going to make money.
In very general terms a revenue model needs to describe two things: 1) type of a revenue model for your app; 2) the most likely amounts of revenue your business will generate over a two-five year period.
As for revenue models, these are the most common ones:
- In-app advertising. In this model, the developer will get paid for serving ads within the app. To gain considerable revenues from in-app advertising, your app needs to have a significant number of active users who engage with an app regularly.
- In-app purchases. This model allows users to buy some additional features, content, or services within an app.
- Donations. This model implies receiving money from users.
- Sponsorships. This revenue model means integrating a sponsor into your app, for example, placing the sponsor’s logo within your app, promoting special offers from the sponsor, showing sponsors’ ads, etc.
The most important thing is that you should convey your clear understanding of how your project works from end to end. So if you don’t know yet how something like advertising revenue is generated, research the details.
Tip #6 Be straightforward about your funding needs
When it comes to talking about your funding needs, you need to clearly spell out how much money you have already invested in your app and how much money you need to reach the next level of growth. Be clear and honest about the ways you want to use investors’ money.
Startups at their early stages might be aiming to raise funds for development purposes while later stage startups might spend their funds on sales, marketing, or PR. Regardless of the stage, almost all startups need to use some funds to hire team members, cover legal expenses, and just keep the business up and running.
So, this is how you can pitch your mobile app idea to investors and convince them to invest in it. With the proper research, unique value proposition, roadmap, and a working revenue model, you can increase the chances of getting investment.
We know that getting your app funded is tough. You need to prove your idea and be ready to sell it. However, we strongly believe that you’ll make it!