Question
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!
Answer
You're facing an uphill battle. Angels and Seed Funds see a new app every hour of the day. Same goes for incubators and accelerators. No one will invest cold because there is no way to protect it. There's nothing patentable. You'll have to show rapid user adoption. If you can hit 10-20k users within a few months after launch, you might have a chance. Even then, it will be tough because so many that have a quick adoption rate see their monthly user rate fall through the floor. You'll also need to live in a major hub - San Fran, Austin, NY or Boston.
If you still want to pursue your idea, start small and test each feature before investing a significant amount of money. Research the Agile method of software development and follow it. If you want to talk, I'd be happy to talk you out of pursuing this idea. Ha. Just kidding - sorta.
