How To Pitch An App Idea?

Whether you want to pitch your app idea, seek funding for your startup, or are looking to secure strategic partnerships, creating a pitch deck is a critical step in describing your business or startup idea to potential investors, partners, or stakeholders.

A well-crafted pitch deck can capture their interest and encourage them to invest in your app idea.

Many entrepreneurs are interested in developing their apps due to the surge in user spending on mobile apps across different platforms.

According to a recent report from Sensortower, The global user spending on mobile apps on both Apple’s App Store and Google Play was estimated at $156 billion in 2023 with a compound annual growth rate (CAGR) of 16.8 percent between the forecasting period of 2018 to 2023.

Source: Sensortower

However, there is a requirement for fundraising from potential investors to successfully start the app development journey and cover basic expenses such as app development outsourcing, marketing, etc.

With the right strategy, you can create a pitch deck to open doors and attract investment. 

From defining problems and solutions to financial projections, market research, and more, explore each component of a pitch deck in detail to deliver a persuasive pitch.

In this blog, we will guide you through creating a compelling pitch deck that effectively communicates your vision and leaves a lasting impression. 

How To Pitch An App Idea To Investors?

Getting funding from app investors who can invest money in your app idea is a way to begin your app development journey successfully.

However, to encourage investors to invest in your app idea, you can follow the given steps. 

1. Find The Right Investors For Your Mobile App

Finding and selecting investors in your industry who might be interested in investing money in your idea at the early stage is the first step towards your journey to app pitching. 

The few ways to find investors for your app idea are as follows:

• There is a high possibility that you may find investors relevant to your industries through investor networks. Consider using your professional network to find the right investors. Moreover, referrals and endorsements from the network will guide you to find contacts of the investors. Therefore, meet and discuss with all your industry contacts.

• Using crowdfunding platforms is another great way to pitch investors. Kickstarter and GoFundMe are some worth considering crowdfunding platforms currently used by investors. Moreover, you can also leverage equity crowdfunding to find the right investors.

• Search for communities that invest in mobile app development ideas and finalize your list. Consider approaching angel investor networks actively investing in your relevant industries.

• Get in touch with potential investors by using other online platforms like LinkedIn and AngelList. 

• Become a member of some startup and accelerator programs to find an ideal investor for your app pitching.

• Many app investors prioritize knowing how much money they will make, any potential risks, and short-term profits. Therefore, ensure that you know about the priority of investors before selecting one to ensure the success of your app pitching process. 

• Consider pitching to an investor that might be interested in your niche. For example, If you’re in B2B, ensure the investors you will pitch invest in B2B companies.

2. Define How Your App Solves the Problem

Invest time defining the benefits of your app and define the ways your app will solve the problems of the target audience. Also, you must be ready with your app’s USP before approaching investors.  

Also, it is crucial to invest your time in the following given below activities:

I. Identify The Target Market

The only way to find app USP is by knowing your audience and finding solutions to their problems. 

Here are the demographics that you can use to identify the target audience,

• Age
• Gender
• Occupation
• Location
• Marital Status
• Education

Highlight the solution to the pain points of the targeted audience through your product or service by directly running ads.

You can observe the search query reports and the audience type attracted to your ads by noticing certain people and their patterns. Create a list of that category and then focus on that target audience.

Also, find complete information on identifying the target audience, such as whether they use Android or iOS phones, how young your audience is, their age group, etc. 

Identifying all these parameters will help you customize your advertisement and ensure success in the right audience targeting. 

II. Know Your Target Audience

Ask questions from your target audience to learn more about their challenges. Consider conducting a poll, asking your friends and families, or even using social media platforms.

III. Analyze the Problem of Your Potential Users

Whether it is the right app idea to invest in? Ask the following questions to yourself to analyze the current problem and find the right solution.

• How challenging are these problems?
• How often do they occur?
• What are the causes of challenges?
• How are they affecting the targeted audience?
• Has anyone or any app provided solutions to these problems and challenges?

IV. What Problem Will You Solve?

Consider focusing on only solving one or two big problems, as adding many features to solve many challenges in the initial stage could not help you attract your targeted audience.  

Identify which problem you want to solve by brainstorming solutions and developing relevant features for your app.

3. Gather Market Data 

There is a need to have a deep understanding of the market size, latest market trends, and customer requirements for successfully pitching an app idea. Gathering market data will also help you figure out whether the product has a market scope or not.

Moreover, investors may ask you for proof of how your app will attract users. Therefore, be prepared with relevant market data, such as what challenges your target audience is facing and how you will solve them with your app.

Here is the information you will need to look for.

• The current market size for your niche
• The market growth in recent years 
• Number of potential users you can reach with the marketing campaigns
• The estimated projected revenue
• Investment you are looking to spend on acquiring a new app user
• Estimated potential users who will use your app

4. Know The Competition For Your Business

When you plan to pitch the app idea, knowing the competition for your business is essential.  You can find the weaknesses and strengths of your existing and potential competitors by conducting a competitive analysis.

Here are a few actions you can take to see how your competitors are doing in the same niche as yours.

• Understand what your competitors are doing and offering to the users
• Know the weakness of your competitors and make that weakness your app’s strength
• Check how well your competitors have designed the app and how easy it is to navigate their app
• Execute the USP of your mobile app idea by drafting a successful plan 
• Understand the business model of your competitors and the marketing strategies to attract customers
• Find out the revenue models your competitors  are using to generate revenue

You can acquire the opportunity to build a unique mobile application by successfully analyzing competition in your targeted market.

5. Finalize The Monetization Strategy 

App investors would need some assurance of gaining profits through the app, which makes it challenging for you to impress investors and venture capitalists. 

When you are ready with your monetization strategy, you can explain to investors how your app will make money and offer a good return on their investment. 

Here are the ways you can make money through your app. First, decide whether you will offer free or paid apps:

I. Free vs. Paid Monetization Model

The paid monetization model is a simple and quick process to make money, where you will charge your users to download the app. 

However, the paid monetization model may not be as easy as it seems, as the report from Statista states that 97% of Android apps and 93.9% of iOS apps opt for the free monetization model.

Users will be skeptical about putting money into your paid app until and unless you don’t show or convince them about the worth of using your app.

Otherwise, users are more likely to download free apps. Therefore, the free app monetization model seems profitable in the long run. 

So, If you are thinking of implementing a free app monetization model, you can consider following the below methods for your free app.  

II. How Free Apps Make Money?

There are various ways to make money from your free app. By understanding each monetization model, you can select the appropriate model for making money from your free app.  

A. Advertisements

Many entrepreneurs who have chosen to keep their apps free go for integrating advertisements into their apps. In this model, a third party pays the app owner whenever a user clicks on their ads via your application. 

Also, for removing ads from users’ screens, you can charge money from users.

Example: YouTube

B. In-App Purchases

A user purchases from points to coins and extra features within your app. To use premium features, purchase coins, exclusive content, or others, a user has to make a payment to the app.

Example: Tinder

C. Subscriptions

A very popular model where app owners ask for money in exchange for offering their app’s content. Based on your requirements, It could be a monthly or yearly subscription model.

Example: Netflix

6. Create A Pitch Deck To Attract Investors

Preparing a perfect pitch deck is essential to get funding for your app. However, ensure your pitch deck fulfills the stages of funding you are seeking, such as seed funding, series A, and so on.  

Here are the steps to create a compelling pitch deck include the following points for making a perfect pitch deck: 

I. Introduction

Use a clear and consistent design theme throughout the deck, in addition to starting with a title slide that includes your company or project name, your name, and contact information.

Also, begin with a brief description of yourself and the idea that you are considering to pitch among investors. Remember to keep your pitch short for the effectual output of your pitch deck.

II. Team  

Share a glance at your team and their backgrounds in your pitch deck and emphasize why your team is well-suited to execute the project. 

Also, introduce your team members and their roles and highlight their relevant expertise and experience.

III. Problem & Solution

Start by defining the problem your product or service addresses and concisely present your solution, explaining how your offering effectively solves the problem.

Emphasize how your app fills a gap in the market or offers something that others don’t by explaining what makes your app unique and better than existing solutions. 

The innovative solutions may include new and exclusive features, cost-effectiveness, a better user experience, or any other advantage.

IV. Competitive Analysis & Market Valuation

Conduct a competitive analysis to define how your solution differs from existing alternatives, such as apps launched by your competitors. 

Also, describe your existing competitor and mention how your app idea is unique and different from competitors’ apps.

Moreover, you can enhance the chance of succeeding with your pitch deck by including market validation evidence, such as case studies, customer testimonials, or pilot program results.

V. Product

Illustrate your offering using visuals like screenshots, mockups, or product demos.  Moreover, emphasize your app’s unique features and benefits by describing them in detail. 

You can explain how your app works and what sorts of challenges it will solve.

VI. Market

Describe how you plan to reach and retain customers in your pitch deck by outlining your marketing and user acquisition strategies. You can also discuss your growth tactics and customer acquisition channels for effective pitch marketing.

Moreover, to ensure the angel investors show interest in your idea and project, you can share the market size and projected growth for your app.

VII. Business Model

Detail your pricing strategy, sales channels, and monetization methods to explain how your business will generate revenue. 

Also, you can describe your monetization strategies to explain how you plan to generate money through the app.

VIII. Investing

Explain the expected return on investment (ROI) for potential investors and clearly state the funding you seek and how you intend to use the funds.

Remember to mention how much funding you expect. at the end.

IX. Contact

Specify what you want from your investors (investment, partnership, etc.) and conclude with a clear call to action in addition to leaving your contact information.

Also, you can express your readiness for follow-up discussions to take an app pitching journey to the next stage.

Conclusion 

From preparing the pitch deck to finding the rights investors, we have covered almost everything required to ensure the fundraising process goes smoothly for your mobile application development. 

To help your potential investors understand your vision for the product, be ready with a solid pitch deck. The pitch deck strategies we have discussed can help you raise money for your mobile app idea.

Also, consider reaching out to investors in the mobile application industry who keep investing in unique mobile app business plans. 

In case after getting the investment, if you are seeking an experienced and reliable mobile app development company, get in touch with us. 

Our app development team and technical consultants experts will help you validate your app idea and proceed with app development.

Contact us today to learn more about how we can help you.

FAQ

Q. How do you write a good pitch for an idea?

A. A good pitch can include the following information: pitch introduction, team role, problem and solution, competitive analysis, product description, marketing strategy, business model, expected funding, and contact details.

Q. What is the purpose of the pitch?

A. Communicating your idea, proposal, or business concept to an audience to achieve a specific outcome, such as securing investment, gaining partnerships or collaborations, selling a product or service, networking, and relationship building and fundraising are a few of the purposes of the pitch.

Q. What are the 5 critical elements of a pitch?

A. The PITCH comprises 5 essential elements, i.e., Problem solver, Inspire an action, Tailor it to the audience, Concise, and Heart.

Q. What is a pitch strategy?

A. A pitch strategy is a well-written plan or approach for delivering a compelling and persuasive pitch to achieve a specific goal. Entrepreneurs can maximize their chances of achieving pitch goals by carefully combining planning, communication, and adaptability.