So you’ve got a great idea for an app, but you need some capital to turn your concept into a viable product? Here are some tips on how to find an investor if you are starting from scratch.
Consider crowdfunding
Today you do not need to rely on one or two major investors to get an app off the ground; instead you can turn to a wider community of potential backers by running a crowdfunding campaign.
The success of platforms like Kickstarter has proven that crowdfunding is a very viable option for commercial projects of all sizes, whether you are looking for a few thousand dollars or several million.
Another reason to investigate the option of crowdfunding your app is that the campaign will provide you with hard evidence that there is a demand for what you are creating, which in turn can be used to attract other investors further down the line.
You can even turn to your supporters as a means of testing and honing your app ahead of its launch, catering to micro-investors who would not necessarily describe themselves as risk-takers.
Ask friends & family
It is not just those people who happen to be born into wealth that can turn to the people they know and love when looking to get some seed money for their app idea.
Seeking initial investment from friends, family and colleagues can be a good solution, so long as you manage it properly and adjust your expectations according to how much you think you will be able to generate this way.
Most importantly of all, you need to be sure not to take this kind of investment for granted; behave responsibly with money provided by friends and family, demonstrate that they can trust your judgement and you will be on a positive path.
Trawl through your contacts
If getting close family members and comrades onboard with your app as investors sounds like a recipe for disaster, but you do not know where to start looking for third parties who might provide upfront funding, consider looking to your wider network of contacts.
You likely know plenty of people through LinkedIn who might either be interested in investing themselves, or could point you in the direction of another individual or group who definitely is.
Harness social media
If your own manual searches for investors are not delivering good results, remember that you can also leverage your online presence to try and hook people with capital to splash.
Letting people know about your app idea, along with the fact that you are hoping to garner some investment to bring it to fruition, is easy today thanks to the range of different platforms that are available.
This process can also help you to hone your pitch, which is obviously important given that only about a fifth of start-ups manage to get off the ground.
Of course different social media platforms generate varying levels of engagement from users, so make sure to plan your approach carefully when using this approach to sourcing investors for your app.
This is an article provided by our partners network. It does not reflect the views or opinions of our editorial team and management.
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