How do I get investment for my App?
Smartphones are intertwined with almost every aspect of modern life. When you leave the house, your next steps often involve an app of some kind, whether it be Messenger, Uber, Spotify, Maps, or being super old school and making a phone call to another human being.
Apps are a way of life. They are here to stay and everyone takes them for granted. It wasn’t always this way, and when they first showed up there was some scepticism when installing an app from an unknown source. This has changed drastically, to the point that we will often install an app after hearing the name once or simply just searching a phrase in the app store.
According to research on average smartphone use, written way back in 2017, the “average smartphone user has more than 80 apps on their phone and uses close to 40 of them each month” and will spend over three hours a day in those apps.
It feels like every week there’s another huge app on the market and a business that’s worth a fortune. It’s clear that there are loads of people out there who think they have an idea that could really take off and be the next big thing.
Do you have an idea for an app that is original and can fill a gap in the market? If you do, that is a huge first step. A lot of businesses or individuals will have ideas, only to find that their concept is already out there and would be incredibly difficult to dislodge.
App development is a time consuming and expensive process, however, if it’s done right, can be the start of a massively successful and profitable journey.
The most valuable part of any app is the idea, but if you’re looking to get started and don’t have the funds upfront, what options do you have?
Here’s what the team at Digital8 recommend to bring your vision to life:
- Do your research and see if your app idea is truly unique. If not, how can you refine it to be more relevant or benefit your target audience?
- Establish a business plan. How will the app work, how will you monetize it, how and where should the marketing take place?
- Talk to a digital expert or company (someone like us) to see what the development cost/timeline looks like. Be sure to sign an NDA (Non-disclosure agreement) prior to holding these discussions.
- If you are going to seek external investment, it’s important to have a solid business plan. It’s equally as important to have a tangible product to demonstrate in person. This can be done by getting a UI/UX (User Interface/User Experience) Designer to create a mockup version (a clickable series of images that will look and feel like an app, without the code). A design can be created for a fraction of the total cost of an app and will demonstrate that your idea has had some serious thought put into it.
- If your idea isn’t quite complete and you need some suggestions or critical thinking, we can offer workshops to brainstorm the ins and outs of the app process. These are billable sessions, however, it may help to save thousands by refining the direction of your app!
Where can you seek investment?
There are a few options when seeking a cash injection, however, most individuals or businesses will expect to see some examples of clients or revenue, which may not even be possible at the start.
- If you have an idea that can benefit a specific community or group, there are Government Grants that you may qualify for. For more about Grants, read our guide here.
- Approach businesses or organisations that may use the app. If they see the benefit, they may offer some form of investment in return for equity or profit share
- List your project on an investment platform (e.g. AngelList). It’s helpful to have expected costs prepared to be fully transparent about your idea.
Are you ready to grow your business?