Need to raise money for your app business?
Whenever you get in front of someone with money and a possible interest – whether family or angel investor – you’d better have a good pitch. Because what you say in that short 5 to 10 minutes will make or break the investment, no matter how amazing your app is.
In part 1 of this post we talked about knowing your target investor and their interests, expressing the problem you solve clearly, explaining why your solution is better than what’s already out there, using a story, and demonstrating credibility. Now for the 5 other equally important keys to grabbing the hearts, minds and wallets of your…
6. Be concise and crystal clear
Get to the point. Be concise. Use facts well. Communicate with crystal clarity, it takes practice in front of other people to know if you’re doing this well or not. Pictures communicate faster and stronger than speaking most of the time, so use visuals well. You shouldn’t expect your audience to be patient and stick with you through 5 minutes of rambling or vague stories where you’re not being clear on various things, leaving the facts until later on. If you bore your audience, they’ll be less receptive when you get to the point later, if they even listen that far! So make your talk lean and fat-free.
7. Your revenue model
Have a very clear revenue model with exciting, and justifiable financial projections. An investor needs to know this from early on in the pitch, so they can start thinking from this point and judging if you really can achieve it. Give them a great revenue model with exciting projections early on. Including any exit strategy you have for yourself and for them. Also be transparent and give them all the numbers you used to reach that prediction, they’ll want to know these.
8. Your funding needs
Be super-clear on what funding you require, and what arrangement you’d like to have it under. Tell them how much money has already been invested and what happened to it. And they’ll want to know if there will be more rounds of funding necessary down the line. Tell them how much money you need, why you need it and exactly what it will be used for. Convince them you will spend their money wisely.
9. Your marketing plan
Marketing is the lifeblood of any successful app business and every savvy investor knows it. Let them know how intelligently and cost-effectively you’ll be promoting the app to success, with a thorough and inspiring breakdown of your marketing plan, and what you’ve done so far. Investors buy people, not just ideas. They’ll be judging you as much as the app you’re promoting, and they want to know who else they’re getting into bed with.
10. Your team
Many app businesses are missing some form of talent and investors are aware of what’s required. Sell them your dream team of Hipster, Hacker & Hustler. And your team members should shine as much as the app itself.
And there you have it. With all 10 of these key components you’ll have a killer pitch ready to convert audience members to investors and raving fans.
Got any questions about your app business pitch?
Ask away, we’re happy to help!