I am planning to enter the mobile dating and entertainment arena with yet another app, but with a twist to it. I feel confident that I can secure a piece of the market, but I am afraid it might be capital intensive. From many responses I have read, angels and VC tend to like investing in proven businesses. But what is considered "proven"? I am able to conceptualize the app, design and deploy it as a MVP product for launch. Since it's a user based app in the dating field, it will require a critical mass to make it successful. Thus, even if I go into a micro-niche, there is a chance It will require funds for marketing, which is beyond where I can take it. When is the right time to try to raise funding for this? Are there any recommendations that I can look at? How can I prove the demand or concept without having to take it to market so that I can fundraise? Any thoughts are appreciated. Thanks!
I've been running an app development company for the last 6 years and come across this question frequently.
"Proven" means you have put your MVP out there, spent a little bit on advertising and marketing (I'd go with Facebook Ads to start) and can "prove" there is market. In other words, your metrics can support a demand for your product - people respond to the ad, download the app and you can show app retention/growth. I would not rely on app store reviews and ratings as proof as those can easily be fabricated. However, real app metrics that you get from analytics and Flurry have meaning as they are based on data.
You dont need critical mass to show your concept is marketable and there is an audience, but you do need to take it to market first.
IMO, the only entrepreneurs who can secure funding based on a pitch deck without an MVP are ones that have a track record of starting and exiting other successful companies. Good luck!
Answered 8 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in