Questions

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!

If you have a business that is likely to be capital intensive, I would raise seed capital as early as possible. Sure, some VCs want this and some Angels want that, but that's a generalization and you could certainly find the right investor with enough diligence to seek them out.

Before you seek funding you need to ensure you're buttoned up with your business plan and proof of concept. If you're app is new, but carries some similarities to others, then use that competitive knowledge to frame up the opportunity for an investor. A savvy and aggressive investor doesn't need to see every nut and bolt to evaluate an opportunity, but they do need to gain an understanding of where you fit into the market place in order to have a perspective on market potential. Good luck.


Answered 8 years ago

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