I have developed a consumer messenger app which is now at a functional MVP stage but minimal work needs to be done in terms of UI and UX to launch it commercially.
I developed the app using a freelancer.
I paid him in full for the development but he never completed it according to the spec and budget I had available. He then just disappeared, leaving me with the source codes.
I have now depleted all my own funds.
I now need an investor to assist with funding to complete development and launch.
First of all, you have to figure out what type of investors usually invest in such startups. What I mean by that, is what is the profile you sould be looking for. Then you should earn their trust and respect (there are many ways to earn such qualities). Finally, you state clearly what your company’s mission statement and vision is. You have to earn the investors!
An investor will put money into a business that they think will give them a profitable return. To convince then you will need to explain why or prove that people with use your app in large enough numbers to make it investment worthy.
Who are your target users?
Why will they use use your app over the alternatives?
Have you tested the MVP or at least the concept with users and what were the results?
These are the preliminary questions I would ask as an investor in deciding whether to continue the conversation.
Good luck with your venture!
You said it already mate, “start” “up”. Offer your Investors creativity, innovation, and ability to disrupt the market and show the potential that your idea can turn the tide of the billion-dollar market. Show them that you are “start-ing to go up.” Part of the challenge for a creative business leader is to check in to your own poise and balance in a particular situation, and the balance and readiness to leap for your own business. So, what should you do when you sit across the table with an investor?
The answer is: Stand up from where you are, without thinking, without preparing. And when you are upright observing how your weight is distributed, without changing anything. Is more weight on one hip or the other? Are your knees “locked” (i.e., pushed back)? How are your feet positioned? Now take a moment and bring all your focus to your feet and your toes. Stand with your feet directly under your hips. Soften your kneecaps. Close your eyes. Is your weight balanced? What does it feel like to bring your weight very slightly forward? What happens if you rock back a little, or move to one side? How far can you go before your toes grip and remind you to keep balanced? Just notice what you notice. How might you describe the change between the first standing, without preparation, and the move to a more focussed balanced standing?
The answer does not mean you literally have to stand there, but you must focus whether your start-up idea is, “Standing up from where you are, without thinking, without preparing.”
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
I think you should first prepare a business plan and be able to prove that you can achieve the same. Then prepare a pitch deck with propositions for investors. It is only then that an investor may give you a hearing. In my polite opinion, I think a lot of diligence needs to be done still before you reach that stage. Do give a call if you need to discuss this and flesh this out. All the best.
Dear Founder (to be) I need to be perfectly honest with you, you are not going to like the answer to your question. You need to STOP looking for investors. Here is a step by step, scenario by scenario explanation based on who you are looking for investment from: (1) You are be looking for Angel Investors (2) you are looking for VC's (3) you are looking for friends, family and fools.
(1) Angel Investors that actually know what they are doing and that have invested in more than 5 startups (not SME's) would immediately tell: you don't have a technical cofounder (big red flag) and you don't have the basic technical foundation to build a technical startup. You could have gotten away with a launched MVP (small chance) but now since you also have not launched, it's a dead end. There is nothing valuable for an Angel if there is no product, no validation, no revenue model tested, no acquisition strategy executed etc. So I'd not waste my time with real angel investors. There are "So-called angel investors" (everywhere in the world), who are in the business of buying super cheap startups and asking for 40-50% of the startup. Believe me this is not a journey you'd like to go with such people
2) VC's: The institutitonal VC Partners have so much opportunities to choose from, you need to promise them a growth trajectory that exceeds market returns for at least 10 times. They rarely invest in non-launched-single-founder-ideas. Traction, Team & Target Market are the primary decision drivers for them you don't have much to show in the first 2 categories. Don't waste your time.
3) FFF. Here you might have a chance based on your network, HOWEVER, if you have a network to exploit, better look for a technical cofounder then money to get from people you know. Depending on where you are based, there is a chance that you won't be able to find much, and whatever you find will go to waste since you don't have enough technical skills or have built some traction (I am assuming from your description)
So this leaves me to the last option, PreAccelerators and Accelerators. If you are serious about being a founder, try and get into pre-accelerators first. I don't advice going directly to accelerators without a cofounder which you can find in a pre-accelerator. You need to learn a lot about launching a product, the startup way of doing things and I hope you have a Founder Institute Chapter or any similar local/international probably university based accelerator around you. If you can't find any, go to Startup School's program in Youtube or apply to their flow.
Sorry to break some of your thoughts and dreams, I feel for your struggle and hard work and I wish I could help. But currently reading through this answer and double checking some of the points I made with other startup founders is a good use of your time and money. Hope all goes great for you in the future.
50%, but keep creative control! Look up investors on linkedin and angellist. Good luck!
I love this question!
As a start-up offer your investors your trust and reliability. Every investor wants to invest in a business that is trust worthy; if you do this you have given your investors the best of offer.
You can place a call let's discuss more on this.