Mobile Software Development: 7 Issues of Fundraising

QArea Team by QArea Team on April 23, 2014

Mobile Software Development: 7 Issues of Fundraising
Reading Time: 2 minutes

Mobile Internet has been disrupting computer technology markets for quite a time and mobile apps revenue is predicted to get five times higher in the next few years.

Besides a huge opportunity, mobile software development also faces a huge challenge. The matter is even mobile app companies getting millions of downloads happen to struggle raising money in their current market. Therefore, to avoid quick revenue decline and reach a long-lasting success, your company should find reliable investors after their early stage progress.

To do this, you’ll need to perform a profound in-house research noting the following 7 issues for effective mobile fundraising.

  1. Product meta-design

Decide what needs demonstration besides great functionality and beautiful graphics. Mind that Investors may look at a set of factors such as user conversion, user experience, user segmentation, social co-operation, smartphone-specific functionality, content updates, testing, analytics, rapid development cycles of low cost, business model, agile development, monetization balancing, app distribution, localization, discovery, community management, cross-platform approach and many other.

  1. Product portfolio roadmap

Specify if your company is aimed at a single product with big investment in a single product or a multi-product developing platform with low intensity of capital per product launched. Think about how you can persuade investors that their risk of taking you on is worth the prospective reward.

  1. Mobile sector growth dynamics

Conclude if you aim at a growing or shrinking market sector; if you are opening some new market part or confronting some better funded competitors; if your focus is on Android, iOS or both.

  1. Team track record

Remember your previous achievements: was it a success or survival after a failure? Think over if you have a complete team for success, who of them is the company’s money person, who knows a lot about gaining organic users, and who can be the team’s core.

  1. Mobile money analytics

Decide on your mobile money metrics which could get you in the top companies providing mobile application development services by revenue. Mobile apps can be ranked based on lifetime value, sessions per day, the percent of paid conversion for the first number of days, average session length in minutes, or the rate of organic against paid users. Explore where you’d rank against better and the best.

  1. Upside potential/downside protection of your company

Examine your upside potential investors could help in such as growth potential, team augmentation, partnerships analytics; and your downside protection for your company’s investors such as underlying asset value, user base, team, IP, market share, switching costs, brand, commercial relationships etc.

  1. Exit relationships

Search the details like who the mobile app industry investors are today, what mobile app categories they are investing in, which advantages/challenges you face with them, why they could like to invest in your company, and how you should build your relationships with them.

There’s a lot to consider indeed, but the above issues for research will provide a better insight in how to raise your chances for quality investment in your mobile products.