The industry is constantly flooded with app ideas, making it one of the most in-demand and potential business avenues. Analyzing application development, Android is the dominating platform for software development. If you are considering Android software development, you have already started with your success. As the market is full of applications, one needs to keep an eye on Android app development trends to stand out in the market.
Once you have a revolutionary idea, the next step would be to take care of all the phases that come with building an idea. One thing that is for sure is that Android software development does not come cheap. Even the simplest of apps require a hefty amount of app building. The more features you would want to include, the more expensive it gets. So, if you are on the same page and want to get funding for your idea, then this guide is for you. Below are some insights on the pitch and ways for app funding.
There are several ways to get the funding for your application mentioned below:
Crowdfunding campaign
Crowdfunding is the best option for startups with no means of their own to get their work going. But, one needs to be extremely careful with the pitch. A lot of ideas get unnoticed due to a bad pitch. The crowdfunding sites would take a small amount of service fee, and you will be assured of getting funds to get your dreams working.
Donations on your site
Considering that the competition out there is high, crowdfunding could be risky in some cases. To overcome these risky situations, there are many more ways to make it work, such as raising funds on your own platform. This can be done in several ways, such as proposing your idea to the users, making small donations, offering pre-orders, gift vouchers, etc., as soon as your app enters the market.
Personal network
This option is suitable for getting funds for small projects. This is the most trusted option, as they are close to us. This doesn’t necessarily mean that you don’t have to prepare anything for the project. It’s just that it is easier to approach people you know than to persuade a complete stranger. Our friends and family often believe in our potential and support us when we move ahead in new ways.
Funding contests
Everyone must have heard about the multiple startup fund-providing contests. If you are really confident about your idea, you can even pitch your ideas to reality shows that offer to fund startups. Other than the big platforms, there are many app funding competitions organized by industry leaders, companies, and angel investors. Additionally, many more contests are held by IT companies, universities, and investor networks. Many successful entrepreneurs take an interest in providing funding to your startups.
Private investors
This option includes people who are working in your app’s concerned niche. Let’s elaborate on this more with an example; suppose you have a nice idea regarding the availability of books in the nearby libraries. As the next step, you can pitch your idea to the book stores and ask them to fund your app for further development so that they can gain over their competitors. This particular idea is suitable for the specific industry in which your application would be working. You need to have ways to communicate with firms to gather funds for your application.
STAGES OF APP FUNDING
Before venturing into this field, one must know about the stages of app funding. These go as below:
1)Pre-seed
This stage includes the starting feasible amount through a private network and bootstrapping. The starting of the project is mainly concerned when the team is just evaluating and confirming the app idea. The money collected in this phase mainly goes to the MVP or prototype to pitch in the later stages. Basically, this stage helps analyze the market thoroughly to prepare for further pitches.
2) Seed
At this stage, you have access to substantial funding. The amount of money that you receive at this stage. The funding at this stage is supposed to address expanding your app development requisites. Also, in case you can not get angel investors in the starting, this stage can potentially attract angel investors.
3) Series A
This stage would be the start of your startup’s functioning. Generally, this stage involves venture capital funds; they fund startups they consider to have good growth potential.
Furthermore, this stage is really crucial to get funding for your application idea. You will have to have a strong pitch to get investors at this stage. At the same time, if your idea gets accepted and you clear this stage, then the chances for ultimate success will be substantial.
4) Series B
Unfortunately, most of the drops take place at this stage. On the other hand, if your app has successfully made it to this stage, then it can definitely make it in the industry. Although, making a mistake is always a prospect. So, ensure that there are no weak points in your application. This funding is all about expansion and development. This stage can involve selling the shares to venture capitalists and rightly controlling your business.
5)Series C
Finally, your business is fully established and still kicking. Further, through this, you can earn sufficient revenue to fulfill all the regular costs without the need for external parties. Every activity after this stage targets upgrades, large-scale expansion, etc.
TIPS TO BUILD A SOLID PITCH FOR YOUR IDEA
- Make sure that the accounts and bookkeeping of your business. When investors or financial lenders analyze the credibilities of your company, the first thing they would want to have a look at is the company’s book.
- Make sure that your idea is unique or can provide a different and better solution for an existing problem. Your idea needs to address the user’s pain points and provide solutions that are best from the others.
- There should be a knowledgeable team working on your product. The investor needs to believe that your product will meet the user and the investor’s expectations.
- Your idea is completely able to fit in the market, and you need to ensure that your application holds the potential with sufficient demand in the market. You will have to present your application’s worth and potential revenue to the investors.
- Furthermore, there are ways better to communicate your idea and its potential to the investors. This implies presenting a minimum viable product or a functional prototype. In case there is no prototype, you will still have to explain to your potential investors about the project with all the details.
- Lastly, remember that the more information you can provide about the idea and your working approach, the better it will be. Keep your conversation clean and sufficient, try not to get stuck on unnecessary details, and focus and more important aspects of the project, i.e., potential revenue.
CONCLUSION:
The competition and struggle to get the attention of investors is a real trick. There have been examples where projects had fallen completely in just three months. Sounds risky, but if you keep yourself and the idea well prepared, the chances of succeeding will shoot up. Additionally, for the safe side, there have been instances where people have invested some of their funds for assurance. Ofcourse, getting funds for your product comes with a lot of effort; consider the tips, and with a little bit of effort, you can ensure that your app excels in the market.
Author Bio:
Will Ben Sims is CEO of Cerdonis Technologies LLC – A software development company that provides a wide range of app development services. Will ben and his team have developed a number of mobile application solutions for various business. Apart from his professional life, Will ben is very good at playing rugby.
Linked In: https://www.linkedin.com/in/will-ben-sims/
