Apps have become indispensable for our lives. We use them to wake up, read the news, look for breakfast ideas, and chat with friends. The global pandemic has fortified the importance of mobile apps and given rise to new types of apps.
The mobile app market is expanding at a blistering pace. According to Sensor Tower’s Data Digest, the total number of mobile app downloads exceeded 36 billion in Q4 2021. Though the market is growing and the target audience for your next mobile app is huge, you still need to compete with nearly 5 million apps available for download in the leading stores.
Having a surefire app idea that is bound to succeed means that you’re only halfway through to the top charts and millions of revenue. But to make that happen, you have to deal with the real world first. You need to develop your app, and you may need funds to cover all the development and other expenses. If you don’t have enough money, but you know how to revolutionize the app market, you can find investors and raise funds.
Finding an investor isn’t an easy thing, even for proficient startup entrepreneurs. You need to know how to pitch your app idea and demonstrate your future success. We’re going to share with you a few practices that can help you find an investor and raise funds.
What is a pitch deck?
A pitch deck is a short overview of your business idea or company to potential investors such as angel investors or venture capitalists. You’ll use your pitch deck while landing face-to-face or online meetings with your investors, clients, co-founders, and partners.
A pitch deck presentation or a slide deck should contain all necessary information about your company, including a business plan, a detailed description of your product or services, fundraising needs, and key metrics like financial goals, valuation, and target market.
The goal of a pitch deck is to generate interest and excitement about your company and land another meeting for investment discussions. It’s your first crucial step in raising funds for your business. No matter how groundbreaking you think your idea is, it’s essential that you plan and structure your pitch in a logical way that will make an investor believe that your app will be a profitable one.
Don’t make your pitch deck too long. The optimal slides number is 10-12. It’s better when each slide expresses one idea.
As a rule, there are two parts of a pitch deck - formal and informal one. You should show both your hard as well as soft skills. The personality really matters while pitching an app idea. Don’t forget to prepare several types of pitch decks depending on how much time you’re going to have with investors. It’s better to have a short and a long pitch deck with all the necessary information than cutting down your long pitch deck right on the go.
Five steps to take before sending out your pitch deck
Here’s five steps you should cover before showing you pitch deck to investors:
Research your investors
If you know nothing about your investors, you have very little chance of raising funds. You need to research both your target audience as well as your target investors. Analyze what investors are interested in similar startup ideas or work with your domain.
There is no need to send out emails to hundreds of investors. Don’t forget that the world of investors is even smaller than you can imagine. They can be friends or work at the same investment fund.
Validate your idea
Of course, you believe your idea is a good one. If you didn’t, you wouldn’t feel it was worth your time and effort to develop into an app. But no matter how confident you are, you cannot afford to skip the step of validating your idea. What does that mean? Putting it simply, idea validation is the process of testing a business idea to see how viable it is.
There are two possible outcomes. Your idea can be either viable or not. If your app idea isn’t feasible enough, you shouldn’t stop generating new ideas. Every time you get rejected, you are getting stronger for the next round.
If your business idea is viable, it’s time to get your pitch deck prepared and find a development team for your project. At ODG, we know how to turn crazy app ideas into robust mobile apps.
How to validate your app idea step by step:
- Conduct market research and study your target audience
- Find out pain points your app can solve
- Analyze the app store charts
- Check your product-market fit
- Build an MVP
Get access to the right investors
Millions of new startups enter the market every year. According to the Census Bureau, investors received over 4 million new business applications in 2020. You might have a long list of investors, but investors may have an endless list of startups. So you need to find investors who are more likely to get interested in your idea.
There is no need to pitch your dating app idea to investors specializing in renewable energy sources. You have to look at your idea from the investors’ perspective and find out your core elements. By doing this, you’ll get a better idea of your target investors and reach the right stakeholders without wasting time on those not interested in your domain.
At ODG, we highly recommend shortlisting potential investors based on their investing history, operating area, and even psychological portrait. As a rule, it’s hard to introduce yourself to investors face-to-face in the tech world. So get ready for cold emails and cold calls or you can use a door-opener or mediator. This could be a corporate lawyer working with startups, an entrepreneur with investment experience, or a startup recruiter.
Personalize your pitch
Try to enrich your pitch deck with personalized details. Another winning strategy is to showcase your business idea through the prism of your investor’s values and language. Moreover, pitching your app idea with an MVP would be much easier since your investors will get a chance to feel and test your product.
If you have enough time and resources, you can launch an MVP, collect first market analytics and users’ feedback, and then land a meeting with investors where you can share your ideas on how to improve your product further and attract more users.
Test and improve
There are no limits to perfection. We recommend reviewing your pitch deck right after each presentation. Since the app market is highly volatile, everything can be changed in a matter of days.
That’s why it’s important to keep your pitch deck updated. If you are not sure about your pitch quality, you can invite an expert to supervise it. Also, you can ask your friends. Probably, there is someone who has a background in the same business industry or specific skills like design, business development, etc. But, anyone can help you with your pitch by just giving their opinion.
Seven rules to pitch an app idea
Though pitch has a well-defined structure, you can always add your personal touch to it. At ODG, we take advantage of the following rules to make a thriving pitch:
Make your pitch a projected deal
While pitching your idea to investors, you have to focus more on the benefits of investing in your startup than on your product benefits. Make your investors believe in your future success.
Analyze your competitors
There are high chances that your product has direct or indirect competitors. While preparing your pitch, you need to conduct in-depth research of the market. The following will show your investors that you have an idea of what is going on in the market and how to improve it.
Find out all the pain points and problems
While pointing out all the pain points and problems of your target market, you can show investors that the product is going to be in high demand. This cannot be just your subjective opinion. There should be brute facts showing that your product will be a success.
Provide a short overview of the industry
Try to provide all the vital information about the industry you’re working at. Talk to investors about the latest data, tech discoveries, and competitors’ products.
Show your team
Without a software development team, it is nearly possible to raise funds for an app startup. Even if your product can be in great demand and your marketing research is quite persuasive, investors cannot be sure if the game is worth the candle without a development team.
At ODG, we cover a full cycle of mobile app development services from ideation to release and post-maintenance support. Moreover, we can help you draft all the necessary tech documentation. We know how to turn surefire app ideas into top chart apps. Just drop us a line, and let’s discuss all the details.
Don’t make your pitch too long
Brevity is the soul of wit. But it doesn’t mean that you should tell and show everything in five minutes. The longer your pitch is, the less attentive investors get at the end. Try to place all the important data at the beginning of your presentation and try to grasp their attention with some jokes or memes if your theme implies.
Does your personality really matter?
While the stats and a brilliant business plan can help, they cannot “move” investors and work the room. Coming up with an idea is easier than selling it to investors. While pitching your idea, you need to understand that they are going to put you in a box in the first 150 milliseconds. It takes up to 30 minutes to make judgments about your character and personality.
In the business world, investors need to evaluate hundreds of ideas in a week, they use negative stereotyping to easily identify the no-business ideas in a matter of seconds. And if your verbals and visuals don’t identify you as a creative and successful person, your pitch session may be over even before it has begun. Check out what personal traits are important while pitching an app idea:
- Be smart
- Be a leader
- Work on your reputation
There is no set formula for creating a successful pitch deck, but there are many ways to increase your chances. Gathering startup capital takes lots of planning and effort. By the way, you can mix multiple sources to fund your idea. You can mix your savings, loans, and investments to launch your startup.
In 2022 the startup investments are getting to a whole new level. Y Combinator has raised its standard deal and now the business incubator offers $500 000. So all you need is to get an app idea and pitch it to the right investors.
For years on the market, we’ve learned a lot about investors and their requirements, about the funding process, and the specifics of each funding stage. Book a consultation now and let's find your funding match.