I have an almost working mobile application, how do I get investment?
I am a first time start up founder, will that hurt me as I have read that investors like to invest in start ups where there is a co founder.
4 Answers
Investors invest in traction. If your app is almost done, then do whatever it takes to finish it and launch it.
The key number that investors want to see is growth greater than 10% per week, or 30% per month. Whatever your key metric is (users, traffic, messages exchaned, etc.).
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Thanks Alain, are there ways I can raise capital to finish the app? Outside of bootstrapping. – User34199 10 years ago
Try crowdfunding on IndieGoGo. If you can't raise money from suckers, you'll never be able to raise money from seasoned investors.
If you are a developer, why don't you just finish it yourself? If you don't know how, why don't you just save money then hire an expert on ODesk?
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The problem is, is that the idea is unique i.e. has not been expressed this way before. So I don't want to expose it prematurely. Concerned that a random freelancer online might steal it, or the code quality is poor, but seriously thinking about going down that route. Would finish it myself, but I am not a backend developer - I am front end. – User34199 10 years ago
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The developers don't care about your project. They just want to get paid. They could care less if it flops. Your chances of running into Mark Zuckerberg or making the next Flappy Bird are one in one hundred thousand. You could even outsource just the backend and withold the front end. – Starrychloe S. 10 years ago
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@User34199, the general advice you'll get from people in the startup world is that in most cases, you shouldn't worry about keeping your idea secret. That instead, you should tell it to anyone who will listen to you. The hard part of building a company is not in coming up with the idea, but in executing, iterating, and pivoting until it gets traction. Usually, the people who have the capacity to do all of that also have a large pile of their own ideas that they'd rather explore. But if you're worried about it, have you considered simply patenting the idea? – rbwhitaker 10 years ago
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@StarryChloe - I hear what you are saying, but it is better to be safe then sorry. @rbwhitaker, I have since got my lawyer to draft an NCDA. I have heard people say before, that you should be open to telling your idea to everyone, but the problem is a) you just don't know who you are telling, and what resources they have (if they are a stranger). What happens if they really like the idea, have better resources and decide to do it? Sure, chances are nobody will steal it, but you are leaving it to chance. Apple are known to conduct their business in secrecy for this reason. – User34199 10 years ago
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Better safe than sorry? You are wrong. By not disclosing anything, you'll be 100% safe to never get anywhere. People do not copy ideas, they copy success. An NDA by the way does not protect ideas, it just prevents your developer from telling others what you are doing, but it doesn't prevent him from implementing a similar idea. A non-compete is even more abusive, I won't even go there. Anu's advice is probably best, go with friends&family funding. – Alain Raynaud 10 years ago
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I have a clause in the NDA which says they cannot steal the expression of the idea, sure, they can do a similar idea but the catch is, this idea only really works in the way I have done it (conducted user testing). I generally do not have a lot of problems with getting people to sign an NDA, but every now and again I have found people who refuse to sign it, recently, one person wanted an expiry date on it - asked him why, he stopped responding to emails...red flag. Would not have found that out if I never had asked him to sign the NDA. – User34199 10 years ago
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Just trying to be helpful. The rest of the world is telling you that your NDA is the wrong approach. If you join any incubator, that's one of the first things they'll tell you as well. Worry less about the NDA and worry more about finishing the app and launching it. – Alain Raynaud 10 years ago
If you want to invest in the mobile application then there are so many options available, Nowadays so many application like e-commerce app development, travel app development, a restaurant app development, a dating app development, Education app development, etc.
"Did you know that Tinder makes nearly #1500 per minute from users trying to connect with others." Dating apps are the best way to make an ample amount of as the competition in other sectors is high.
At this stage, you could consider raising a friends and family round. Once you have traction, you could consider raising an angel round.
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Thanks, what are your thoughts about seed investment and joining an incubator program? – User34199 10 years ago
