Securing Angel Funding For Your Mobile App
A mobile app can be highly profitable if it is properly managed and marketed. Millions of users have been known to purchase and download some of the most popular apps. This leads to windfalls for the companies that produce them. In order to reach that point at all most will require some outside funding.
The cost of an app developer company to help create a mobile app for you is hovering around $100,000 to $500,000 at the moment. Unless you have that money in your back pocket you need to figure out how to get some angel funding.
1. Investors Are Not Going To Speculate
Real angel investors are not interested in some big idea that you have for an app. What they really want to see is how that app is actually going to work. You need to bring examples with you along with projections of how many downloads your app is likely to generate as well as what your profit/loss margin is going to look like.
2. Summarize Your Idea Quickly
Angel investors are busy people who have ideas tossed their way constantly. They do not want to listen to you drone on about how great your concept is. They want you to cut to the chase and explain to them what is in it for them as well as how you plan to stay competitive in an increasingly crowded space.
3. Bring A Partner With You
It always looks a lot more convincing to have more than one person backing an idea. If you go into a meeting with an angel investor by yourself you may look like a prophet for your own idea who has no clue what he or she is really doing. You don’t want to be that person because you won’t be taken seriously. Instead, bring along someone else who can at least back up what you are saying to the potential investor.
4. Explain The Ownership Breakdown
What exactly is the angel investor getting for their investment? They are going to want a stake in your venture. Be generous with how much you are willing to fork over to them. If they can have a sizable amount of the profits that are to come then they are more likely to invest. You have to reserve some of the company for yourself of course, but don’t get too uptight about showing appreciation for their investment.
5. Never Talk Down To Them
You have the dual responsibility of explaining how your app works while at the same time not talking down to the potential investor. There is nothing worse than being spoken down to. Anyone who might have considered giving you money will quickly revoke that decision if they feel that you do not respect their intelligence.
6. Understand Your Target
When pitching to an angel investor remember that you are marketing to a crowd of one. Try to understand your investor and who they are as a person. Anyone who does their homework on their potential investor tends to do better with their pitch. That personal touch is often all that it takes to seal the deal.