7 Foolproof Steps to Getting Your App Idea Funded in 2017
February 20, 2017
Getting an app funded often comes down to investors. But where can you go to find them? And once you narrow down your targets, what’s the best way to impress them – and get them to invest in your idea?
If you want the funds, you have to put in the work to get them. For example, did you know that most startups have a 5% “hit rate” from investors? In other words, if you have 200 names in your funnel, 10 of those will actually pony up the money. Strategically building out your list of VCs/Angels is crucial.
You should only spend time working with the investors who are most likely to invest. Of all your potential targets, you need to take the time to qualify and filter leads in order to reduce the amount of time wasted on dead ends. A general rule to follow is that you should be cutting your original list by 25-30%. By reducing time spent talking to unlikely investors, you’ll be freeing up more time to talk to people who will actually be able to help you.
One important tactic is to set up a system for tracking and organizing follow-up. As you progress through the sales process, keeping track of needs and tasks can get messy, and there’s nothing worse than missing some vital element. Create a custom Excel sheet, or as an even better tactic, consider sales-focused CRM tools such as Salesforce to keep you organized. That way you’ll know who you talked to, what you said, and what type of follow-up is required next for each and every lead.
Keep investors in the know, and maintain excitement and momentum by scheduling regular status meetings and calls. Each investor is different, so take the time to ask them how they want to be pitched – the long, technical version, or the short and sweet version? By catering to (and keeping track of) your potential investor’s preferences, you’ll be making great strides toward getting what you want – their financial support.
Read the rest of the article and uncover more tips here.
For advice on creating a killer elevator pitch, click here.