5 Pitch Strategies you can use to WIN Investor Funding for your Start-Up Mobile App Project

August 03, 2022

By: John Tomblin, Senior Solutions Architect
Tucson Bizz, a division of Sofvue, LLC
Printed with permission of Sofvue, LLC and the author

Never in the history of technology have so many people adopted technology tools as rapidly as mobile technology. Between Google and Apple apps, there are over 6 million unique applications, with a new app entering the market every 12 seconds. Even at Tucson Bizz, we’re starting or launching a new mobile app every month, and sometimes, two new projects per month. The good news regarding mobile app development is that it isn't as difficult as one might believe when attempting to find funding. With the right strategy and funding, you can launch your mobile app into the marketplace that in turn solves a fundamental problem and reward you for your effort.

Here’s how…

1. Choose a Great App Idea

Your idea plays a vital role in getting funding for your app. Here’s the key difference between a good and a bad app idea.

What is a good idea?

A good idea solves a fundamental problem that makes lives easier. A few examples include Airbnb, Uber and Lyft, but there are also apps you don’t even see on the app stores, like those used in larger companies to run their entire enterprise. Some of our biggest contracts were for apps that aren’t even available on the Apple or Google Play store. What’s important is that you and your team are passionate about what you're creating and committed to making it the best it can possibly be.

What is a bad idea?

Bad apps include anything that doesn't add value or solve a problem, whether it’s for a broad audience or a niche, like apps solely focused on entertainment (such as games). Another type of bad app is one with an unclear purpose. For example, if an entrepreneur creates an app just because they feel people will love it without any proper market research is a bad idea.  Remember, an idea is not real until you’ve done your homework and determined that the market [NEEDS] and [WANTS] your app.

2. Extensive Market Research

When looking for investors, it’s important to do your market research. The more you know about your market, and the audience it serves, the more confident your app idea is worth pursuing. A few ways to do this include:

* Check out the app store (or app stores) for similar apps and their reviews, downloads, and ratings. If you see no competing apps, it either means you are first to the market, have a very narrow market seam or that the idea has already been tried and failed by others.

* Analyze the competition—what are they doing? What are their strengths? Weaknesses? How are they selling themselves? How much money do they make each month/year? How many downloads have they received? Have any of them been featured in magazines or blogs yet (and if so, which ones and why)?

* Identify where your competitors are weak and how to monetize to the consumers advantage at each “weak link”.

You should be able to present this information to investors so that they see value in investing in your app.

3. Create a Prototype

Investors are constantly being pitched, and for good reason. They have what every start-up craves… capital. Even if you have the world’s best idea, it could be challenging to win funding if there’s no prototype or MVP to prove your point(s).

A prototype will show investors what your app looks like, and demonstrating use cases and or user stories, demonstrates how your technology will work, which in turn helps them better understand the potential market value and why they should invest in it.

However, don't confuse this with a working version of the finished product. A prototype is intended to be a proof-of-concept that shows investors that you have an idea worth investing in. It is by no means a fully functional final product.

4. Prepare a Sound Business Plan

A business plan is a written document that describes the business, it’s 3-5 revenue streams and its expected operating overhead, along with it’s management team and personnel labor costs. It should be written in a way that is understandable to investors.  It should also be reviewed by your CPA and attorney to ensure your offering is correct and doesn't puff.  Investors hate puffing, especially when everything in the plan is a projection.  A good mobile app business plan should include:

Executive Summary: The executive summary is a multi-page document summarizing the business and its goals. It should be short and punchy but include enough information to make sense to investors who haven't seen the entire business plan yet. The best executive summary I ever read was only two paragraphs, but they were two of best paragraphs I’ve ever read.

Elevator Pitch: An elevator pitch is a concise description of your company's business value proposition (what it does) and its target market (who it serves). Your pitch should be concise and deliverable in 30 seconds or less.

Company Description: In your company description, you want to provide a brief overview of the organization's culture and values, mission and vision, products and services, competitive advantages, financials, current investor sources and operating capital, and who sits on your management team. You may also provide information about your industry as well as information about the competition in your market.

Organization and Leadership: This part of your plan should include details about the management team, organization structure, financial structure, and intellectual property, provisional patent(s) or trade secrets.

Marketing and Sales Strategy: How do you plan to market your app and bring it to the marketplace? It should include every detail of your strategy, such as organic and paid advertising, lead generation and funneling, cold calling, expected adoption rates, etc.

Funding Request: It’s important to articulate the funding request and financial projections clearly. The total amount of money you need will help determine if your business idea is viable.

Additionally, it should include a financial projection model. A financial projection model is a tool that can help you evaluate the viability of your project. It's made up of three key components:

* Assumptions (e.g., how much time and money it will take to create the product)

* Inputs (e.g., how much each unit costs to develop)

* Outputs (e.g., expected sales volume and unit pricing)

These three elements must be combined with current market conditions, competition, and other factors for an accurate picture of your company's financial state to emerge.

5. Fine Tune Your Pitch Deck

The goal of a pitch deck isn’t to convince investors that your idea is excellent; it’s simply to convince investors that you know what you're doing and are worth their consideration. Our clients have received all manner of funding, from crowdfunding, private funding, venture capital (VC’s), grants, business loans, F& F (Friends and Family), to name just a few.

If you have an idea for an app but no experience, this process might sound daunting—but it doesn’t have to be! Tucson Bizz has developed countless MVP’s and mobile app prototypes, and we can assist you in homing in on the right path to make your project work.  

Remember:  Keep it short and sweet!  And remember that investors aren't interested in hearing about every detail; they don’t have the time. What they want to see and hear is your passion, your confidence and your vision to take your idea from vision to launch.

How Can TucsonBizz Help You?

At TucsonBizz, we help entrepreneurs and small business owners create visually aesthetic and feature-rich mobile apps. For the start-up business sector, we specialize in B2b, D2c, B2c with customers in Tucson and across Arizona. We can also help you create an MVP for your app, which in turn can be used to help draw attention and meetings with investors.

With 20 years and $20MM in designed, developed and launched mobile apps, we know how to guide start-ups throughout the process, from developing the MVP, to presenting with investors. In fact, we’re scheduled to be at TechCrunch in San Francisco later this year to help one of our clients do exactly that. To learn more about getting started, give us a call at 623-845-2747.

Share On