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The process of investing implies that the third party (it could be a particular business) takes part in the startup funding. Clearly, it has nothing to do with charity. Every investor wants to receive a certain profit eventually.
COVID-19 has definitely had an impact on attracting funders for mobile app development. Due to significant financial losses, companies aren’t that eager to take any risks. The trick here is to put more effort to interest prospective investors.
Types of investors:
- Relatives and friends. In the majority of cases, financial support from family members is used for market research, prototyping, and funders finding. For other activities, one will need to apply for other approaches.
- Official project support. Before appealing to official foundations, it’s vital to draw up a comprehensive business plan, research the market, and sensibly evaluate the prospects.
- Social media. There are dedicated professional communities that could be applied for the purpose, say, Meetup, Xing, Plaxo, LinkedIn, and more.
- Co-owners. Firstly, it’s critical to calculate how much mobile app costs, so you could invite a person with money to co-found your service. It could be great teamwork when you’re submitting an app idea, and your associate is financing it.
- Crowdfunding. It’s an effective practice to apply for one of the specialized crowdfunding platforms to gather the amount you need.
- Online loans. Bank loans could be hard to get, so online services, like, Lending Club or Posper, might turn pretty useful.
- Business angels. Those wealthy people might not only finance a startup, but also assist with the development itself, for instance, offering useful contacts.
- Venture capital businesses. Such companies can easily afford to invest money into projects they’re interested in.
What exactly potential investors draw their attention to
You have to specifically focus on the below points, cos they are what sponsors won’t ignore:
- Your passion. Startup owners determine the success of their brainchildren in multiple different ways. Investors expect to see your enthusiasm and passion for your project. They have to understand that you’re willing to work steadfastly to realize it in life.
- Profound knowledge on current market conditions. By triggering the whole process, you are to know the market and its big sharks. You have to convince investors that you clearly understand who your target audience is and what they need.
- Uniqueness. Multiple entrepreneurs present to investors their projects, so you have to make yours special and appealing. Try to stay reasonably creative, and you’ll manage to increase your chances to win sponsors’ hearts and money.
- Sincerity. If you dare to lie, it’ll be discovered sooner or later. You have to know each detail of your project and be able to explain how everything works. Mention only those technologies that are applicable for your application.
- Financial prognosis. Potential sponsors will for sure ask you to show various financial indicators since they need to figure out the project prospects. It’s better for you to calculate certain metrics, like, client acquisition costs and others, so you could provide investors with specific figures.
- Hot niche. Obviously, targeting a hot niche by itself won’t ensure you find sponsors. Still, such a circumstance serves to make the project more attractive. By the by, diverse on-demand applications are in great demand these days, so you might want to think of building your own service of that kind.
- Professionalism. Serious businessmen will never invest in a team of amateurs and enthusiasts. Investors prefer to cooperate with professionals. Thus, it’s critical to make sure you have skilled specialists with the required expertise.
And, one more thing for you to remember. Sponsors will most likely reject you if your idea isn’t actually convincing or impressive. Investors won’t agree to risk their money when financial projections are hardly comprehensible. Moreover, people don’t cooperate with individuals who fail to effectively arrange and run their business.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.