How to Get Angel Funding on Your Mobile App Prototype?
Written by Hemendra Singh on September 20, 2018 | Updated on: September 20, 2018
Any concept or service like an on-demand service or e-commerce service has a mobile app. Wonder why? Try to use both simultaneously. You get to know how easy apps are and what extra features they have than the website. Many businesses have gained popularity due to their apps.
For instance Zomato; it gained immense popularity from the app as the app offered natural food ordering features as well as reviewing features. There is the significant number of restaurants, bars, and cafes available in Zomato.
The user can select the best one from reviews, ratings, images, number of check-ins, etc. Similarly, there are other apps which you will find in almost every smartphone: Whatsapp, Facebook, Instagram, Ola, Uber, Zomato, Bookmyshow, etc.
All these apps are amazing and have come up with some great ideas and features. These great ideas need great capital too.
What are the factors to consider while deciding on the cost of an app
Every app needs at least one technology. Working on these technologies can be expensive in some cases. Developing apps need various platforms, frameworks, etc. Top app developers need to buy these technologies and tools to build great apps.
Developing an app requires skilled resources. To develop a mobile app these resources are needed: designers, developers, testers, marketing people, etc. Finding skilled resources is difficult.
Some features are way too expensive and extremely useful. Some features are mandatory to use and are costly.
4. Third-party app integration:
Many apps integrate third-party apps such as payout apps (Paytm, Tez, etc.) and GPS apps (Google maps). It requires money!
5. Customer service:
Customer support centers support many apps that deal with customer data. These support services are 24×7 active and offer a solution to all app related queries. Customer support services require different technologies, resources, inventory, etc.
iOS and android are two major platforms for app development. Developing apps for Apple and Android is different. Both have different policies, rules, etc. Cost varies on both platforms.
Above are the significant factors affecting the cost of app development. If you are a part of the well-established app development company, you need not worry. However, if you want to start a mobile app development company, all you need is significant capital.
Companies usually go with the loan option or funding option. Starting a business has some smart strategies, and one of these is never investing your own money in the business.
When we talk about mobile app development business, there must be an idea first. Do developers need to analyze the idea that whether the idea has any scope? Are there any similar ideas already present in the market?
What is the best platform to use for the app? Is the app maintainable? All these questions are immensely important to get confirmation on the development of that app.
App prototype is developed first. There are two reasons. The first reason is to show this prototype to the end users and get their opinion. Another reason is to show this prototype to the funding companies.
What are the types of app prototypes?
- Low-Fidelity prototypes
- High-Fidelity prototypes
First one is Low-Fidelity prototypes in which the functionalities are tested and not the visuals. Here visuals, i.e., designing is not given much importance.
Another type is High-Fidelity prototypes which are almost the same as the original app. In this type of prototype, app visuals are also tested along with the app functionalities and features.
There are certain benefits of creating app prototype:
- Understand user requirements
- Test from an end user
- Reduce development time and budget
- Reduce the number of errors and mistakes in the actual development phase
- Test UI and UX
- Validate your ideas
- Seek funding
- Get a clear image of what app is going to look like
- Get a clear image of what app is going to function like
- Freedom from making changes
The process of mobile app prototyping:
Developers and entrepreneurs need to detect the need. No one buys or downloads an app if it does not solve any problem or offers any plus point. This phase requires much research though.
Also, it is essential to understand how a person can solve day to day problems about which he has not thought of applying any solution. There are many issues in the society and day to day life of an average person which are not detected by anyone. Find out such pain points.
#2 Concept Map
Once you have detected the problem, the next step is to think of solutions. It is known as concept mapping. In this phase, developers and other team members come up with a concept that no one has thought of.
#3 Feature Ideas
Decide what features you want to add in the app. This phase is crucial as it decides how will be the performance of your app. Also, features must be according to the concept, and irrelevant features must not be added.
Now comes actual coding of the mobile app prototype. As discussed above there are two types of prototypes such as Low-Fidelity prototypes and High-Fidelity prototypes. According to your need, decide what type of prototype you want to build.
What the types of fundings in the market are?
1. Angel funding:
Seed Fundings are the funds raised by the individuals who invest in great ideas. Many investors seek great business ideas and intend to invest in these ideas. Many angel investors do this to help small entrepreneurs.
Bootstrap funding means self-funding. These funds are raised by entrepreneurs themselves from current job savings or another business.
3. App contests:
Many large organizations organize app contests in which app prototypes are tested and reviewed. Such contests are filled with great young talent and innovative ideas.
Let us focus on how to get angel funding on your mobile app prototype:
Usually, the angel investors do not expose their own identity. They prefer to stay anonymous. These angel investors usually have a team which takes care of all such investments and transactions. Find out such angel funding networks. There are various angel investors available in all countries, and you can google about them.
Look what your competitors are doing:
If your app idea is similar to an existing app, you can check out where did they get the fundings from? Always show the prototypes to the angel investors and explain how your app is different from other apps that are funded.
Use social media:
Try to find angel investors on social media channels. Many angel funding investors are actively seeking new talent on social media channels like Facebook, Linkedin, etc. All you have to do is find them on these channels via their pages and groups.
Create an online presence:
There are various websites where investors hunt for new and unique ideas. Just as mentioned about social media pages, there are some websites like IndieGoGo, Kickstarter, RocketHub, and Fundable which are offer greater visibility to entrepreneurs. Create your presence on these websites.
Tips while convincing these angel investors to fund for your mobile app prototype:
- Prepare a good presentation
- Highlight unique features of your app
- Even more transparent
- Mention all functionalities in short
- Do not use technical language as an investor might not understand
- Keep the presentation as a professional/ business presentation.
- Explain the problem first and then the solution
- Always keep statistics in the presentation.
- Be polite
Hence, creating an app is a tough job and arranging fund is more stringent. Apps that integrate third-party apps has extraordinary features, more extended development phase, etc. require more cost.
Angel investors are someone who actively seeks unique ideas and encourages them by investing in those ideas. For this purpose, create an online presence, use social media, study competitors, and search networks.
My name is Hemendra Singh. I am Managing Director and co-founder of The NineHertz, a Mobile App Development Company. I am having a keen interest in the latest trends and technologies that are emerging in different domains. Being an entrepreneur in the field of IT sector, it becomes my responsibility to aid my audience with the knowledge of latest trends in the market.