The mobile app market is the fastest growing section of the mobile industry. Mobile phones with featured apps become the remote control of our lives and can easily boost small businesses. The trend that is mostly running in the mobile App development industry is picking up a problem in peoples’ life and solving that with an App.
The concept of creating an innovative mobile app is great. But, developing a mobile app takes more than an idea. Without the right funding or investors, the idea wouldn’t be able to see the light of the day. Developing the App, promoting it in the app market, conducting true market research and maintaining and updating the app needs investment. But, it’s challenging to find an investor who can take the risk to invest in your project. So, you have to do some homework before approaching the investors and convincing them to fund your mobile app. Here, we’ll discuss the ways to attract investors for your Mobile App.
Type of investors:
Before considering How to attract investors to invest in your Mobile App, you need to identify the probable investors for your app. Here are the different types of investors who can fund your project.
1.    Family and friends:
Approaching for the fund from your family or wealthy relatives and friends would be your first step to finding investors. Convincing family members or friends is easier than the strangers. Finding investors from your connection is worthy as you can get genuine support from them and you may not need to an elevator pitch to the stranger world.
2.    Co-founders:
You can attract your family and friend to your project by making them a co-founder of the project. When a person is convinced about your idea of generating profit, he or she likes to invest in your mobile app. You can find the co-founder outside of your connection by delivering your idea of making a profit.
3.    App-contests:
One of the stunning ideas about How to attract investors to invest in your Mobile App is finding a fundraiser from the fundraising app contests. The extremely competitive App-contest that happens in different parts of the world, allows the entrepreneurs to deliver their idea about the App to the investors and convince them to invest in their project.  Shark-tank is one of the most popular App-contests in the world.
4.    Crowdfunding:
Crowdfunding is the collective endeavour of individuals who network and pool their funds together to support the entrepreneur or start-ups. It’s a kind of fundraising app or website where the developers can pitch their idea to get potential investors for their project.
Appsfunder.com is such a type of community where the developers can get help from other developers and can also find fundraisers to finance their app.
5.    Angel investors and venture capitalists:
Angel investors are the business angel for the strat-ups that have serious need of investment. They are an affluent individual who offers capital in exchange for convertible debt or ownership equity. You can also go to the Venture Capitalists the companies that offer a large amount of money to raise a business.
What is the investment Round?
The investment round is simply the phase of raising funds for the project. To know the ways to attract investors for your Mobile App, you need to have an idea about the stages of investment.
1.    Pre-Seed
It’s the stage when you have an idea about the app and you need to do market research. You’ve to raise funds from your friends and family or by yourself to do the needful market research. If you have sufficient funds make a prototype of the App with the feature and functionalities. Some investors like to fund technical ideas as they have a better chance to sustain in the market.
2.    Seed:
In the Seed round, you need to focus on the initial development of the business. You need to design the minimum viable product (MVP) of your business and based on that either you can hire a workforce or develop the app by yourself. Test the app for market-fit by making it available to the public and investors. Now, you can generate some revenue. The Angel investors or venture capitalists invest in this time.
3.    Series A
The active growth of your business begins from this stage. Now, your prime focus is on the marketability and scalability of your mobile app by optimizing your business. A strong elevator pitch may help you to get more funds in this stage.
4.    Series B
If you find any mistake in Stage A, you can correct it in this stage. Series- B funding helps you to expand your business.
5.    Series C
Achieving this stage means, you generate enough revenue from your business and cover your expenses without additional funding. In this stage, you’ll get complete ownership of your business if you borrow funds from venture capitalists
4 ways to attract investors for your Mobile App:
When you go to meet an investor for your project to convince them in financing your mobile app, you need to follow the top four ways to attract investors for your Mobile App.
1.    Determine the project:
Your idea of developing the mobile app should be unique and focused on the pain point of the target users. Once you have a strong idea about the app, you need to determine the average budget and timeline for developing the App and which developer company you’re going to choose for your app. The investors want a clear idea and an average budget for considering their profit from the investment.
2.    Establish the revenue strategy:
You need to make the project statistics from the market research before going to the investors. You need to show them the market size of the App. Analyse the Apps of your competitors and why they are not suitable for success. Therefore, you need to explain why your solution is unique and how it can generate greater revenue in future.
3.    Manage Your Brand
If you have a strong brand name with a meaningful logo and colour scheme, even philosophy, you’ll attract investors’ attention. This is another theme of How to attract investors to invest in your Mobile App
4.    Create MVP
Creating an MVP or the first version of your App with the basic features is a cost-effective and affordable approach How to attract investors to invest in your Mobile App. It helps the investors to understand the workflow and technical details of your app. If you develop a potential app to get success, investors will not bother to fund your mobile App.
Conclusion:
There are many ways to attract investors for your Mobile App. The Investors are looking for a Unique Selling Point or USP of the business, your professionalism, Enthusiasm and the keywords of your app. When you have an idea about the type of investors, investment rounds and investors’ demands, you’ll know How to attract investors to invest in your Mobile App. For developing a captivating app, you need to hire an experienced and trustworthy App Development Company.
