You have got an amazing app idea but don’t have the resources for it? Don’t worry we have a guide plan for you that will help you navigate through your app funding process. Getting funds for your app is not a one-time game plan, rather involves various stages and rounds with investors where you have to pitch your idea to them manifolds. The more stages you surpass, the more zeros are added to your investment plan! But let’s not get ahead of ourselves. We have laid out all the necessary stages for you that can make your innovative but risky idea go from that to a successful social media app!
The easiest way to raise funds in this stage is by looking for a reliable co-founder to take your idea to the next stage. Basically, try to raise funds on your end whether by launching a campaign on your own app or looking for credible sources that can loan you money in the form of angel investors, or launching a crowdfunding campaign altogether. Crowdfunding is the idea of users pre-ordering your product in order for you to raise money. This pre-seed stage typically involves securing enough funds to develop a minimum viable product (MVP) or hiring an app development team. Pre-seed funding is often used to cover initial product development expenses and to lays a foundation to build the investor’s trust.
This stage specifically highlights angel investors who are willing to take the risk and invest in future talent and game-changing ideas. As with little to offer to the table you need money to invest in your idea. Although, the amount is quite low compared to the upcoming stages.
The initial rounds known as Series A of the seed stage are raised based on your previously raised money and business performance. These rounds will heavily be impacted by how your business has performed, your clientele base, your business structure, and all that good stuff. So go prepared and make sure to raise money when you and your business are prepared for it and can garner third-party investors to invest in your vision.
Series B aims to help businesses and startups, especially tech startups garner investments to help them scale and capture new markets following the impact and success that they got in their existing reach.
Series C expects a whole lot from you and your business performance. Now, your business will be worth millions and you will be looking to raise equal funding from investors. You are no longer a startup idea, but rather an enterprise that has proven its worth by succeeding in existing markets, scaling to new markets, and being a hit there, and now is worth millions of dollars.
Last but not least comes the funding you can get from Initial Public Offering (IPO), where the company sells its private shares to the public which allows for funds to be raised and is a promising way for that. Moreover, it opens a new realm of opportunities by allowing the public to access and providing them transparency regarding the company’s performance.
If you are looking to get funding for your social media app make sure your social networking app’s value proposition should be explained in detail, together with details about its special features, target market, and market opportunity to investors. Draw attention to the issue your app resolves, the market needs it meets, and the competitive advantage it has over alternatives. Your elevator pitch should be succinct, carefully written, and customized to the needs and concerns of potential investors.
Find potential financing sources that are intrigued by social networking apps or tech startups by doing some research. This could include early-stage funding from angel investors, venture capital firms, and other sources. Look for investors who have a history of funding comparable applications or who have a keen interest in social media technology.
This can be a very stressful ride, however, with the right mindset and a good business strategy you can make it to the rounds and garner the necessary funding from investors.