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MenuWhat's considered "Traction" in the B2C app world these days?
I"m developing an app for the travel/health space, and looking at runway numbers to get to our first raise. What would today's angel investor consider to be solid traction, in terms of downloads, user consistency, stickiness, or feedback? Thanks!
Answers
Mobile app that has launched: You need ALL of the following:
1) Trending towards or at 100000 installs within first 90 days of launch;
2) Day 30 retention rate of at least 20%
3) Core "MTM" (metric that matters) healthy (dependent on business model, usage model etc)
4) Evidence that growth is just "getting started" with plenty of upside left.
Happy to talk more in a call.
I'm a developer, not an investor, so it's difficult to give you specifics on the metrics you mentioned, but from my very hard-earned experience, you want to be able to demonstrate the following, to get an investor interested:
1) Solid product-market fit, in terms of your value proposition and how it is meeting the needs of your audience.
2) Community exposure. Is your app being well-covered by the main blogs and networks in your niche? What are your conversion rates for new visitors or linked content?
3) Can you accurately measure churn? User return rate? Daily active users? Small but consistent user base is what they want, rather than large but sporadic.
4) What feedback you have had. Positive and negative. Negative is good because of point 5.
5) Show how you act on negative feedback. If an investor can see that you are listening to, and adapting to your audience feedback, they know you really care about the end user, not just fulfilling your grand startup vision.
6) Show your roadmap (including historic). In my experience, investors need to know what their money is going to be spent on, how those decisions are being made, and have been made in the past.
I've been involved with a dozen or so startups myself, and have consulted with many more, so if I can offer you and more advice, or if you would like your deck reviewed, feel free to get in touch.
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Among platforms for startup funding, AngelList is the 800 pound gorilla. Does it make sense to use simultaneously other platforms like Gust, etc?
Short answer: Of course! Many angel groups require you to submit through Gust because it offers a consistency and makes reviewing applications easier. But not all use Gust same as not all use AngelList... I haven't met an angel who frowns upon using multiple platforms. I would encourage you to leverage your twitter and Facebook or Instagram to meet angels and get in their radar (don't hassle or stalk) just try to get exposed a bit to them by being part of the same meetup group, follow the same blog, membership... Subscribe to their own blog.. And when you submit funding request considerations do please send a follow up email or a call or basket of fruits if you have contact them before.HV
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Where is the best place to find an affordable mobile app developer?
You can hire app development freelancers from www.odesk.com and www.elance.com. I am an app developer myself, and I got profiles on both of these networks, a link is given below: https://www.odesk.com/users/~012d73aa92fad47188 Please feel free to get in touch to discuss ideas and clarify any confusions, I will be glad to help.NA
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How do you get exposure on AngelList to attract angel investors?
What of the following things does your startup have? > Founders who have graduated from prestigious universities / previously exited companies to known acquirers / worked for a known companies (with known being a brand-name company such as Google, Amazon, Facebook etc) > Three or more months of statistically meaningful growth (e.g. for easy sake, double digit growth of a number in the thousands) > At least one investor who is active on AngelList (defined in the ideal state by at least one investment in a company who raised their round through AngelList and ideally whose social graph is connected to "high signal" members of the AngelList network) If you have none of these things, then at least, have advisors and referrers who have a strong AngelList profile. And another option is to seek out the AngelList scouts and pitch them directly. They are more open to this than anyone else and I've seen companies with very little traction and very little social proof get featured because a scout believes in the founder and/or the story. Without any or most of the above, it will be difficult to stand out or build relationships via AngelList, in my opinion. I assume now AngelList operates on a concept similar to the LinkedIn "degrees of connection" model, whereby an entrepreneur can now send unsolicited messages to investors so long as there is a degree of connection between the investor and the company. I get a few unsolicited emails a week from companies whose advisers or investors aren't people I follow but that because of the way they determine "connection strength", these unsolicited emails still gain my attention. I assume this is the case for all investors. So the more that you can build your list of advisers and referrers, the more connections you can solicit. That said, AngelList's inbound email system is almost entirely ineffective for "cold" emails to really high-profile investors. Happy to share with you what I think to be your best options for raising profile for your company.TW
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