Do you believe you have the next multi-million dollar app idea and are gearing up to attend a pitch event like the ‘Meet the Angels’ Event’ hosted by FAU Tech Runway in Boca Raton, Florida to pitch your app idea to potential investors? But how can you make sure that your app really is the next Facebook instead of the next I Am Rich app?
We want to give you a competitive advantage, so we reached out to some of the past angel investors attending the ‘Meet the Angels’ Event’ to gather insights on how to pitch an app idea effectively. For additional insights, be sure to check out our articles, Is Your App Idea a Viable Business Opportunity? and Why Apps Succeed or Fail & How to Avoid Costly Mistakes.
What Angel Investors Expect When Pitching an App Idea
Dreams Vs. Reality
Launching the next big app or start-up can feel like a dream come true — like you’re taking control of your future with Tech Entrepreneurship. Filled with promise, and potential, the sky's the limit because your idea will be the “Next Big Thing.” But reality check — did you know 70% of upstart tech companies fail, many in 20 months after raising around $1.3M in funding?
What about those crowdfunded companies that make practical consumer hardware solutions you love to see on Kickstarter or Shark Tank? Did you know that 97% of these consumer hardware startup projects fail, die, or become zombies? (Source: Startup Failure Post-Mortems, CBInsights) This tells us that survival and success are two different definitions. An idea can be ‘successful’ in earning social and financial support, even massive seed and crowdfunds, yet not fail at the most important task — surviving.
The start-up journey is a rewarding yet challenging experience, like running blindfolded through the most treacherous and intense obstacle course of your life with everything you ever dreamed of having at the end.
Some founders say it feels like you’re being tested with how many nightmares you’re willing to go through, without any guarantee your dream will manifest, ever.
So how can you set yourself up for success when pitching an app idea? As Conrad Szymanski, a member of the Bridge Angel Investor group shared — “What's going to make this app stand out from an extremely crowded field? I see many phone app-based pitches, but am always looking for and rarely see, what is the customer use case for adoption?”
Pitching an App Idea to Angel Investors
Sara Lucas, formerly the chief operating officer for New World Angels, offered some valuable insights on how to show up better prepared when pitching an app idea. Some of these suggestions may seem obvious, but they are not much different from presenting other ventures. Here are the key points to keep in mind:
- Have a pitch deck and, ideally, a well-thought-out business plan to accompany it. There are tons of resources available for both of these things and putting together and refining both of these documents helps an entrepreneur figure out if they have an idea or a potential business.
- If the app is still under development, have a prototype or mock-up of what the UI will be like.
- Understand your revenue model. Good ideas need paying customers to become actual businesses.
- Related, understand your customers/users, what their pain points are, and have a plan for how you will market to them.
- If you have an MVP with current users, know your metrics. This includes the number of users (paid or free), customer acquisition cost, lifetime value of a customer, and even anecdotal feedback on how your app is improving a user's life.
The biggest challenge often seen with entrepreneurs who "have an app" is that they haven't thought about the nuts and bolts of their business surrounding that app.
Questions You Must Answer to Succeed in Pitching Your App Idea to Angel Investors
Mastery & Demonstration
Dean Hatton, founding partner at Las Olas Venture Capital, and Paul Tanner, founding partner and managing member at Las Olas Capital Advisors, emphasize the importance of discussing and demonstrating mastery in four critically important topics::
- The problem they are solving
- How much the market will pay in the aggregate to solve this problem? This entails an empirically derived number of target users (buyers) multiplied by a market-validated expected price point
- Why your value proposition is both unique and defensible
- Why you and your team are the right individuals to solve this problem
If Nothing Goes Right, Go Left!
In our previous article “Why Apps Succeed or Fail & How to Avoid Costly Mistakes” we shared our version of the pillars of app success: 1) The App, 2) Ideas & Execution, and 3) Business strategy.
To navigate these areas successfully, it mainly comes down to research, preparation, team, timing, funding, and sometimes a little luck. As you embark on the journey of pitching your app idea to angel investors, remember that adaptability is key. Sometimes, when nothing goes right, taking a step back and choosing to go a little left can steer you toward the path that leads to success. Many startups and apps today started as something completely different. Be open to changing course if the winds of opportunity blow you in a new direction, as it often leads you to where you truly need to be.
Success Depends on Support!
Behind the success of every app, there is a team that believes in its vision and is able to support its growth or evolution.
Image credit: Career Employer (https://careeremployer.com/)
Building a team of experienced and dedicated professionals sometimes starts with obtaining the support you need from the beginning. One of our partners, VuPulse, had the vision of creating a tool that would transform advertising for video streaming. By working with a custom software developer initially, our team at The SilverLogic built VuPulse a working prototype and blueprint, which they used in their app idea pitch to investors. Shortly after securing funding, they started app development, and our team became their team. While we handled development, they focused on the launch, marketing, and securing additional partners.
Consider growing your team at any stage of your journey. Reach out to us here at The SilverLogic in Boca Raton if we can assist you with the following:
- Developing your app blueprint or prototype to demonstrate to investors
- Assistance with User Interface (UI) and User Experience (UX) design
- Building your app
- Revamping your current app or prototype
In addition, we also assist your project or company with:
Product Design
- UX/UI Design
- Product Discovery
Consulting & Strategy
- UX/UI Design
- Product Discovery
Innovative Solutions
- Machine Learning
- Artificial Intelligence
- Internet of Things
- Apps for Wearables
Software Engineering
- Mobile App Development
- Custom Software Development
- Business Automation
- Apps for Wearables
- App Testing
The cornerstone of a successful app lies in focusing on delivering value and a user-friendly experience for its users. Working with an experienced team to support your success will help ensure that the value your app provides not only meets but exceeds user expectations and requirements. Together we can make ideas happen.
Contact us to help make your app of the future, start today.
