Mobile Apps are now integral parts of life and currently are a multi-billion dollar industry. It is in fact the way of the future. Here are few facts that shows how startups got funded and raised funds.
This is a technological era which has created great opportunities for every sector of the business world and mobile devices are one of the great, game-changing innovations of the time we live in. Put simply, mobile apps make mobile devices magnets for businesses to attract customers and to raise funds.
Raising $1 million for your mobile app startup is child's play -- assuming you have tried that and found that customers want and need your product.
Many entrepreneurs wrongly assume that investors can be curious about investment in their mobile app at the initial stage. What they fail to understand is that concepts - even great concepts - don't mean anything unless they are validated by client orders or downloads.
In a recently recovered interview with Steve Jobs, he talks about the illness that grips most individuals, which he explains is "thinking of an extremely nice plan is 90% of the work. The problem with this is that there's an incredible quantity of expertise in between a good plan and a good product and as you evolve the nice plan, it changes and grows."
Investors realize that there are several concepts that are similar in nature (Google vs. AltaVista , for example, with AltaVista being the dominant search engine prior to Google's launch in 1998), but the distinction lies in the execution.
Fund-raising on the drive of technology
Several technology-driven companies have made news headlines when it comes to fund-raising. Some of the best examples are Uber, Bumble, Conspire, Cotopaxi.
These startups received a flood of funds after the launch of their mobile apps. But it is not always possible for all technology driven businesses because several factors are considered by investors before they fund any business.
What do investors consider worth investing in?
If you look around the venture capital firms or individual investors you will notice that they not only look towards the unique business concept but also analyze the complete business model. Investors prefer to invest in mobile-centric businesses as mobile is not everything today but also the future of the business world.
If you are a startup and want to receive funds for your venture then you should have a well developed mobile app that is capable of impressing potential investors. You shouldn't have to say much to convince investors that they should be impressed by your product or service; your product or service and the business model behind it should speak for itself and impress them.
Why do investors show more interest in app-driven businesses?
- Great products and services with a competitive edge that are technology-driven and long lasting are liked by investors, which encourage them to invest in those products and services.
- Investors want to invest in those products and services that are easy for customers to get and nowadays mobile apps are an easy way for customers to purchase products and services which make them an obvious choice for investors.
- Venture capitalists look for a competitive advantage in the market and want their portfolio companies to bring new ideas that can generate more sales and thus increase profits before their competitors enter the market. As mobile apps are a great way to connect quickly with the customers with latest offers and thus obvious choice for venture capitalists.
- Investors are interested in those businesses that have a capacity of global reach. Mobile Apps are a global commodity and thus it can earn large number of customers from any corner of the world. Whatsapp is a great example of this.
We are SD3 Corporation, an award winning Mobile App Development Company in Chicago. We develop apps that help businesses to engage with customers effectively.
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Category: Mobile App DevelopersCompany about: SD3 was founded in 2001 in response to the new realities of the post-dot-com IT era. We bring more than 30 years of experience meeting and exceeding the IT needs of companies like yours. Several of SD3's principals, including Chairman and CEO Tom Overholt and Director of Business Development Julie Halverson, first began working together at BALR Corporation, a respected Chicago software and technology consultancy. Overholt founded BALR in 1978 and the company grew from three tech ...