You have a fabulous app idea storming inside your brain waiting to jump out! Your dream is also to make the idea a reality…but lack of funds is stopping you from taking the next step. If this describes you, please read on.
If you are looking for funding sources, it is crucial to have knowledge about types of investors, whom you should approach, and how to make valid impact on investors regarding your app idea. Learning about effective pitching strategies will be useful in taking the first step towards getting funds.
To have a detailed read on great funding tips and alternate funding avenues for your app idea read: “7 Tips to Get Funding for your App Idea”
“What Investors Look For: Get Funding For Your App Idea” to understand the characteristics expected by an investor in an app and entrepreneur to get effective funding.
Connect with both heart and head
Investors are also human beings, but with the necessary money to finance your mobile phone application venture. It is essential to win the hearts of the investors with an impressive presentation of your app idea. However fabulous the functionality and features of your app idea, conveying them in a convincing manner is crucial. Investors are business people with the main objective of making money from business. You need to display the deep understanding that you possess about your business model and revenue strategy. Your sales pitch should stand out for its well-crafted business strategy and value proposition, not for simple gimmicks. You need to hone your skills in quickly grasping what the investors are most interested in and developing a conversation around it.
Investor pitches come in all sizes. Let’s have a look at some great tips that will help you in doing effective pitching.
1. Elevator Pitch (less than a minute)
You need to practice on the most proficient elevator pitch, since the time you get will be less than 60 seconds (the average time that it takes an elevator to climb or descend multiple floors). Capture the most important portions of your story and turn them into a winning pitch. Elevator pitch should contain:
- a. Introduction of yourself
- b. A relatable story
- c. Clear proof of existence of a problem
- d. Evidence of how your app is exclusively created to solve the problem – this should form the heart of the pitch
- e. Salient features of your business plan
The ultimate aim is to keep the listener- a rich VC or angel investor – excited about the project and to make them inquisitive to learn more. Since time is low, to make a compelling investment case, an intelligently-formulated plan and continuous rehearsal is essential. Description of your skills should not outweigh the purpose of your business. The bottom-line is: you need to say more, quickly and effectively.
2. Short Form Pitch or (10-20 minutes pitch)
If an investor is impressed with your elevator pitch, he may call you for a short form pitch. You will start branching out from what you said in the elevator pitch. You need to talk more about your company and verify that you and your team are uniquely capable of building the app that is crafted to solve the problem that you discussed. You need to give credentials of your team members who have worked in the same market. You can also present a clear picture of the competitive advantages, financial highlights, funding needs, exit strategy etc. Investors should feel convinced that your company and product are efficiently positioned within the specific marketplace.
3. Long Form Pitch (20 minutes to 1 hour)
This is the formal pitch that gives you ample time to detail and discuss everything that you need to. Investors will not sit as passive listeners. They will be interrupting you every now and then with queries regarding certain aspects of the company or product they want to know more about. The time is sufficient enough to do a product demo, or a prototype of the app that you have made. This will ensure that you are serious about building a company around a product/idea (here, the app) that you love. The rule for using slides for the long pitch presentation is 30/20/10. This means the pitch should not be longer than 20 minutes, with no more than 10 slides and a font size not smaller than 30 point.
Preparing a clear, concise, and convincing pitch will encourage prospective investors to be part of your success story. Having all the 3 forms of pitch prepared in advance would only serve beneficial to the actual investor meetings but will heavily influence your marketing and branding as you would have thought of presenting your app idea in a completely different way.
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