Knowing how to pitch your app to potential investors is fundamental to securing capital to develop it. A typical investor likely receives several proposals on a daily basis.
Well, just like you, there are several people looking to raise funds for their projects.
More often than not, they simply don’t know what to do or how make their app sound like the one of a kind idea that it is. And because so many people are constantly seeking the help of any one investor at any given time, how well you pitch your app idea will determine not only the level of interest of that investor, but also their level of funding.
Here are five helpful tips on how to uniquely and effectively pitch your app to investors.
1 – Evaluate The Potential Market
Every app idea should have a target market. The app should either address an existing problem, or bring about new innovations to its intended target market. Before your app is ready to be pitched, you will need to do a proper market evaluation.
A market evaluation is a feasibility analysis of what problem or gap currently exists in the market, and how your app can solve or fill it.
What’s the problem you’re trying to solve?
And more importantly, how likely it is that your app can actually fill this gap or solve its intended problem?
If the app really does have the potential to solve an existing issue, the next thing you’ll need to consider is what specific solution your app is bringing to the market. It is on the strength of your market evaluation that you will be able to convince investors that you’re a sound bet during your pitch.
In this way, you’ll also be able to show to investors the scale of opportunity your app has for them.
2 – Inquire About The Investor
Every investor is different, and so, what might interest one, might not necessarily interest another. Learning about the investor and their interests might make your pitch more successful.
- Research as much as you can about the investor you want to work with.
- Find out how they typically go about taking up new investment opportunities. You can learn about their strategy by asking around and reaching out to some of the people they’ve previously invested in.
- Be sure to also ask their current or former partners about their interests as well.
- Look into reviews and ratings of that investor (if they’re available) and make sure to take note of the person reviewing and/or rating them. These people are important to your process and they may even be an important connection later.
- Learn about their dislikes. This way you will have a better chance of getting the investor on your side and potentially even doing business with him or her.
3 – Master The Art of Good Presentation
How you present and conduct yourself when pitching your app also goes a long way in being able to secure the capital you need. If you haven’t worked with this person before, your presentation is the first professional impression they will have about both your and your app.
It’s important to note that it is not always necessary that you follow the rules of a conventional pitch. In fact, trying a more unique approach can be incredibly helpful. Remember to stay composed and confident during your presentation.
Tell a good story about your app, why it requires their funding, and how it can even help them.
Align your presentation with the market evaluation you conducted. They will want to know what problem you’re trying to solve and why this app is the solution.
If your presentation style is engaging and shows that it’s well researched, the investor(s) is/are likely to have questions. Make your presentation simple, precise and convincing without claiming to be “too smart.”
Don’t be deceived into thinking that big words and a smooth approach will help convince people to fund your app.
Remember, they’re constantly approached with new pitches at any given time and are likely to spot a smooth talker when they see one. Focus on being clear and transparent instead–they might even find that refreshing!
During your presentation, be sure to outline your market strategy and tell them about the advantages of your app. Discuss how you intend to manage your market competition using the SWOT analysis you should have conducted. If the conversation is going well and you have time, give a forecast of where your app should be in the coming years.
4 – Be Accurate in Your Data Analysis
When pitching your app to investors, you should be aware that you’re a dealing with intelligent people who have plenty of investment experience. They might not necessarily know the ins and outs of the app you are pitching to them, but they are not all ignorant about business.
In short, you should be certain about the figures and facts you present. Be accurate, be specific, and most importantly, be convincing about your data.
5 – Explain How They Benefit from Investing
No one, including giant investors, will want to invest their finances if the venture isn’t profitable. That is why explaining the benefits, or return on investment, is an essential component of pitching your app to investors.
Be sure to communicate that greater returns will be based on the gradual growth of your app even if the investor may know that already.
Don’t be unrealistic and do not make promises you know you can’t keep!
Tell your investors how you intend to grow gradually and that benefits will be accrue accordingly.
Raising funds for startup apps may seem difficult. So much so that many promising apps don’t always gain mainstream audiences. Knowing how to pitch your app to investors can help you bring life to your idea and more importantly, sustain it for much longer.
How then, do you go about pitching your app and gaining the attention of investors amidst the numerous proposals that come in? Be your best, be quick witted, and carefully and professionally pitch your app to them.
Be confident–not fidgety, and most importantly stay committed by following up.
With all of the above tips, pitching your app to investors should seem like less of a big deal. With proper implementation, these tips are all you need to get that investor see enough reasons to invest in your app.
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Let’s make great things happen!