According to the statistics, in 2017 the number of applications on Google Play exceeded 3 million, on App Store – 2.2 million. The growth of mobile app market shows a big demand in software development for smartphones. So the number of people who want to invest their money in mobile app creation is also increasing. But over 70% of such app investments never pay off. What strategies should you use to attract investors to your project? What recommendations can be helpful in your case?

If you develop mobile games it makes sense to search for publishers to invest in your startup. On mobile market such players as publishers are mostly game studios that grew up and gained large audience, team, experience as well as money. They want to promote other games, invest in them, give them users, help, expertise and by this get a share in games they publish. So they take lead on marketing, sometimes development but usually pre-development, monetization, analysis, etc. For mobile app projects search for investors in the common sense.  

Here are some strategies that show where mobile developers search for the right people to invest money in their product realization:

  • Startup listings. There are web resources and portals where you can post the information about your startup, app investment ad, etc. Investors look through such startup catalogs as well as ads and choose the projects they like. But such startup listings are not always effective.
  • Investment funds. Lots of entrepreneurs write to such institutions every day. So the chance that your message will be considered and your plan will be approved can be very low. The main point is that investment funds SEEK for projects to invest in.
  • Conferences. Conferences can be quite efficient but many investors attend them with other goals, e.g. to learn new trends, tendencies, solutions, etc. They will hardly search for potential projects there to sponsor.
  • Mass / social media. It’s more effective way to attract app investments to your startup. Your aim is to inform as many people as possible about your project, so writing an overview and publishing it in mass media or social networks will make investors notice you.
  • Personal contacts. If you know someone personally who can sponsor your app development that’s a big deal. Your can also ask people to recommend you to potential investors. But it doesn’t always work out.

 

The main rule that works seamlessly when you seek for app investments is not to run after possible sponsors. You should have your own pride and value to interest investors in your project but not to beg them contribute their money to your app. Investors don’t like persistence. You need them more than they need you.

Recommendations:

  • Provide not a plan but a working part. Today sponsors don’t want to start investing in a seed stage. Give them something that already functions. You can show the works you’ve done before but focus on real app processes and visible results.
  • Satisfy people’s wants. You have more chances to engage public and find good app investments if your project meets people’s daily needs and requirements. Before you start realizing your idea answer the following questions:
  1. What is the your product uniqueness?
  2. What problem of real people do you plan to solve?
  3. How do people solve this problem now? Why should they use your app?
  • Make a soft launch. By the time you search for investors you should have some working prototype of your product and should make a soft launch. So you can see how users will operate with your mobile app, whether they will need it or not. If everything works good and users are satisfied with your project it will be your additional benefit in sponsors’ eyes.
  • Build a strong team. You have more possibilities to find app investors if you organize an effective, professional team. Today people often want to invest in smart, creative human resources, not in their ideas. Money for team, not for idea. Skillful, experienced and intelligent specialists with good expertise and reputation are more attractive for investors than just projects. So even if an idea is not the best and innovative such team will realize it good. And the percent of trust, reliability as well as certainty will be higher with these app creators.     

 

Multimedia Nordic is a good investor in good and really interesting projects. We consult, give free advice, share our experience, support and invite talented specialists to join our friendly team. If you have innovative ideas, non-standard solutions, bright realizations or simply need for app investment contact us to learn more!

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