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  • How to Raise Money for Your Mobile App Startup - A Detailed Guide

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    If you are have a mobile app startup to build but are struggling to raise funds, here is your guide:

     

    There is a common catchphrase- I would like to make the world a better place if only I had the source code! The temperament behind this statement clearly underscores the status of the current entrepreneurial world- people with great ideas but constrained by funds. After all, building a mobile app startup may look slim terms of operations but drains a lot of resources. It’s not just the app development cost- which in itself can sale up to tens or even a hundred thousand dollars but a range of subsequent costs including business operations, marketing, maintenance, and more.
     

    If you are one such entrepreneur with a great idea eyeing for funds, here is your step by step guide:

     

    Elevator Pitch

    This is the short and persuasive description of you and your product to hook the investors. The general consensus is that it shouldn’t be more than 60 seconds long or ideally just 30 seconds- the time you’ll have if you get into an elevator with an investor, thus the name Elevator Pitch.
     

    Now let’s face it- not everyone’s app is going to carry a simple universal idea and it’s genuinely tough to put abstract innovative ideas into words, that too with a tight deadline of 30 seconds! But if you put yourself into the shoes of investors who get pitched ideas all the time, you’ll realize that 30 seconds is enough to understand a business.
     

    • This would basically include who you are
    • The core aspect of your business- yes aspect and not aspects

     

    That’s it. Elevator pitches aren’t necessarily deal makers but can surely be deal breakers. If after your pitch, the investor isn’t interested, you need to find a new one.

     

    Extended Pitch

    If they show even a shred of interest, you will most likely be given an extra two minutes at that point. In these two minutes, you will have to explain your idea and product.

     

    Now there are two possibilities here- either you have an original product or you are building upon the ideas of some other application. Investors don’t really care. All that matters is your odds of success. There are tons of original ideas that fail to raise funding while a copied product is flushed with funds. But your strategy for both should be a bit different:
     

    If it’s an original product, you should focus on:
     

    • Problems it solves
    • Will it evolve? How?
    • The audience you are targeting
    • Sources of possible revenues

     

    If you are building upon the ideas of any other application, you must explain:
     

    • How your product is different
    • How your strategy to succeed is different
    • How do you intend to compete with the original product?
    • If you are targeting a different market, does the idea suit there?

     

    Presentation

    Now if you nail these two minutes, you’d get a chance to formally present your idea in a proper environment. At this point, the investors are already impressed so you should shift your focus from gaining their attention to retaining it. Most likely you would present a presentation that should not be more than 10 slides long and 20 minutes in duration. This presentation would basically cover a detailed roadmap of everything you have planned. Apart from everything mentioned above, there will things like:
     

    • Expected timeline
    • Your team
    • Detailed business model
    • Possible competitors
    • Projected investment
    • Projected market share, growth, and revenues
    • The time before profitability, among others

     

    Once you get thumbs up from the meeting, you can then rush to any top app development firm to get your business rolling.

     

    Crowdsourcing

    If not, there is always another option- crowdsourcing. If you believe your mobile app has the potential to attract a larger number of initial small backers, there are many crowdsourcing platforms where you can post all the details mentioned and ask for small investments. While the funds in this case trickle very slowly, you can nonetheless hire a developer to start working on your idea immediately.

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