How to Raise Venture Capital for Mobile APPS and Websites
Starting a online business or creating a mobile app can be difficult, especially when you have no venture capital money. It is a very daunting concept for entrepreneurs. Think about it. You have a great Website idea or mobile app concept that you know people will flock to.
But how can you turn that app and Website idea into reality?
It All Starts with a Plan
You would be surprised how many people never take the time to actually form a business plan. No, your idea is not all you need. That is just one part of a business. You still need to actually form a business plan that explains what you are going to do, how you are going to do it, what you need, and what the expectations are for your business.
Sadly there are not that many venture capitalists lying around with bags of money to throw at a smartly pitched idea in a meeting.
That business plan is the real foundation of raising money because through that you will show investors or lenders what the potential of your company is. By taking the time to research and create a nice plan you will develop a better understanding of what your specific needs are along with expected returns within a certain timeframe.
Ideally that clarity of purpose can help when it comes time for the…
Think About Presentation
So how are you going to spin this idea?
Another thing some people don’t consider is the actual presentation to potential investors. While some places might simply want to see your business plan, others expect you to step up and sell them on the idea.
This provides an opportunity for you to showcase your knowledge and drive as well as let them gauge your level of professionalism and ask questions.
So how should you present yourself? There are quite a few good presentation decks out there for showcasing work. PowerPoint, Keynote, or even just a nice set of PDF’s can work. From there it is a matter of style as to how you lay things out, the transitions you use, and what information to use.
Make sure you consider this like a sales meeting; you are selling yourself and your idea so the program needs to be interesting and not turn things into a snooze-fest. That means practicing, dressing appropriately, and being able to handle any questions.
Shake the Tree
With the groundwork of a plan and presentation in your pocket you are ready to actually look for money. Sadly that money tree out back is probably all used up but there are a few other great places you can find donors.
- Friends and Family – Ideas that are very new or small concepts might not fit into the standard mold. Friends and family might be willing to help but you need to be professional about it. This is twofold; you need to be respectful of friends and family plus when you do get bigger the larger lenders will go over early transactions with a fine tooth comb.
- Bank Financing – Banks have money and it isn’t always as difficult to get a loan as you might think.
- Government Programs – There are various agencies in place to help new businesses such Seed Capital and SBA avenues.
- Angel Investors – This is a common term for groups that work together to pool money and then find solid investments within a specific geographic area such as the New York Angels or the Washington Dinner Club.
The Bottom Line
Sometimes people think finding the money is the most difficult part. Actually being ready to present a plan to people who have money usually takes more work. The bottom line is that you need a good idea, a serious plan, and a well practiced presentation before you can even think about knocking on doors. But the nice thing is, after doing all that preparation you will be much more confident in what you are trying to accomplish and that will translate well to potential investors.