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How to Get Investors for Your Mobile App – The Sophisticated Guide

Photo of author Kainat Farman / February 3, 2020
mobile app

Mobile app development takes more than a great idea, it requires the right funding to turn that idea into a successful product. While entrepreneurs provide the vision and developers build the app, investors make growth possible. With global app store revenue projected to reach $739.6 billion in 2026, it’s no surprise that investors continue to back promising mobile app startups.

Imagine you have a brilliant idea for an app. You believe it will start a revolution in the mobile app market. But then the realization hits! You are a little short on cash to fund the development. So, do you stop your entrepreneurial mind from dreaming? There are many alternative routes for you to fund your app. App investors, for instance, are always eager to invest in potentially successful ideas.

Getting mobile app investors interested in your app, however, is a challenging feat. As they are paying to develop and market your app, plus employee salaries, you need to prove that your app is worth the investment.

This is exactly the kind of validation a top mobile app development company like Cubix can help you build. Cubix have spent 18+ years turning early-stage ideas into fully functioning products, working alongside founders to shape an idea into something investors can actually evaluate, from early wireframes to a working build. 

Read More: The Future of App Monetization: What’s Next for Entrepreneurs?

So, if you want to know how to find investors for an app, this guide has the answers you need:

How To Get Investors For An App

It’s not enough to have an idea. You also need to research the market to show mobile app investors why they should invest.

The app investors would also want to know you’ve invested time on your app to refine its function and design for your market research, competitor research, and identified your unique selling point.

Here is a fool-proof checklist that guarantees investors for apps every time:

Read More: How to Get Investors for Your Mobile App – The Sophisticated Guide

Understand Your App Niche

The mobile app development industry is booming, and there is an app for almost all of life’s necessities. So, run a survey to see if there is even a need for the app you have in mind. You need to ask why investors would be interested in your idea.

Check out your competitors; see what they offer their audience and how it boosts their company growth. Identify the market gap and what your users need; it will highlight how your idea will impact everyday life. A tool like Crunchbase is worth bookmarking here, it lets you see who has funded similar apps in the past, which investors are active in your niche, and how much competitors have already raised. It’s also worth researching how many of those competitors are leaning on AI-powered apps to stand out, since investors increasingly expect a modern app to have some kind of intelligent feature baked in.

The investors for apps want to make sure the funds they invest will return ten-fold with the app’s success. So, classify the target audience, features included in the app, monetization strategies, and more.

Read More: How to Monetize Your Android App – Proven Strategies for Success

Brand Your App

Branding helps visualize the idea in a real-world setting. It is the essence of every business that sets the foundation for further development. Plus, it’s much easier to explain a finished product than it is to pitch a vague idea.

Get a domain and design mockups for your app to gain app funding by helping app investors understand your idea’s different dimensions. Additionally, it shows that you’re willing to put in the effort and thought to ensure its success. Once you have something tangible, listing it on a platform like Product Hunt can generate early buzz and give investors real evidence that people are curious about what you’re building.

If you need a little help, hire a development company offering consulting services to work out the quirks in the app mockups, logo design, and more.

Read More: Top Mobile App Trends to Watch Out in 2025

Develop An Elevator Pitch

Investors are busy people with a lot of entrepreneurs vying for their attention to fund their ideas. So, your elevator pitch needs to be attention-grabbing but also must describe the app’s purpose.

An elevator pitch is how you describe your product to investors concisely. Picture this: you take an elevator to the 20th floor for a business meeting, and on the way, a potential investor steps in the elevator as well. You have approximately 30 seconds to impress them with your idea before they step off. Within that timeframe, you need to explain the purpose of the app, its functions and features, and the problems it will solve for the users.

How you pique their interest in those 30 seconds is the difference between getting an app funding to launch your idea and going back to the street for more research. Once the app investors are intrigued, you’ll have a more extensive time window to explain your idea, discuss budget, project timeline, and more when they schedule a meeting.

Read More: 50 Profitable Tech Startup Ideas You Can’t Miss in 2025

Work On A Pitch Deck

If you hook the investors with your elevator pitch, then it’s time to create a pitch deck for your meeting. You’ll have more than 30 seconds in the conference room, so you need to be careful concerning how you use that time.

A pitch deck is a presentation that includes details like specific features for each app function, your app development process, marketing campaigns, hiring costs, equipment, and more. Be precise and to the point when relaying the idea. Showcase statistics, charts, branding, and other highlights of your app indicate its worth as an investment. It also helps to be upfront about your development timeline, since investors want a realistic sense of when the product will actually ship. 

Remember to refrain from adding too much fluff and designs, overshadowing the critical content of the presentation. Additionally, maintain a balance of visual graphics and content instead of displaying the exact script you’ll be following.

The purpose is for you and the investors to have a discussion. But time is still a luxury that the investors do not have. So, limit the presentation time under 20 minutes with a minimum of ten slides if you want to gain sufficient app funding.

Read More: 10 Best App Marketing Strategies that Will Surely Work

Create An Interactive Prototype or MVP

While branding provides a visual, an MVP helps experience the app in real-time. The best way to impress investors with the idea is to show them an interactive, tangible prototype. You can either create a flat mockup or design a minimum viable product with only the core features vital to app function. Not only does it show your seriousness with the idea, but it also allows investors to interact with the app and experience it first-hand. 

Even at this early stage, it’s worth building with app security in mind, since a sharp investor will ask how user data is protected long before the app is ready to launch. This is also the stage where you start gathering evidence of product-market fit, real signs that the people using your prototype actually need what you’ve built and would miss it if it disappeared. 

Read More: How to Create an MVP That Attracts Investors in 2025?

Preparing Traction Metrics

Before you walk into any investor meeting, put your numbers in order. Traction is the clearest proof you can offer that your idea works outside of your own head, and vague enthusiasm won’t replace hard data. At minimum, be ready to talk through your MAU, since it shows whether people are actually returning to your app. Pair that with your CAC so investors can see what it costs you to bring in a new user, and your LTV so they can see what that user is worth over time. When your LTV comfortably outpaces your CAC, you have a much easier story to tell.

What Are Funding Rounds

Funding rounds describe the various rounds of investment that a project needs to move past the development to launch and post-launch maintenance as well.

Before presenting your idea to investors, understand the variety of funding rounds that startups go through. Each funding round puts you in front of different investors with varying interests on where they invest.

These funding rounds help polish your app as it goes through multiple reiterations with each round.

Read More: Tips For Building A Custom Mobile App

  • Pre-Seed

As the name implies, the pre-seed is the first stage of your journey to gaining capital for your app idea. It is when your app is still a concept with no visual elements representing it.

In the pre-seed round, you are the initial investor, spending your money on market research to see if there is a need for your app. The investment also goes into establishing the founding team and developing an MVP. It paves the way for you to pitch the idea to more investors and gain higher funding than the initial $200 thousand.

Programs like Y Combinator and Techstars are built specifically for this stage, offering pre-seed founders mentorship, a small check, and a direct line to later-stage investors in exchange for a small equity stake. 

  • Seed

The seed is the second round of funding when things pick up, and the app idea starts to bring in a little interest from investors. The mobile app is not launch-ready, and you’re still working out the quirks in the function and design. But you need investment for further research, testing its market worth, operational hiring, and initial development.

The seed stage centers around your app’s initial launch, with the funding ranging from $10 thousand to $2 million. The investors are primarily angel investors, startup incubators, and early-stage venture capitalists who are willing to take a risk with your mobile app idea.

  • Series A

Series A is when you focus on aligning your business goals and targeting large-scale venture capitalists for funding of $2 million to $15 million. By this stage, you should have a tangible, visual representation for your concept, refined your aim with the product, and have a solid understanding of its market value.

  • Series b, c, etc.

Series A is a significant milestone for your app idea, but going beyond Series B and further means you are on the right path to success.

Series B is where you build the company from a startup to a mid-sized business, expand the list of services offered, and grow your team. At the moment, you should be going all out with your marketing and advertisement campaigns, have steady development processes, and active users boosting brand engagement.

In funding rounds beyond Series B, focus your goals on business acquisitions, going public with your company, and stepping into new markets.

Types of funding

From friends and family to large venture capitalists, investors are of various types and have a stake in your mobile app idea to ensure its success.

Besides funding rounds, understand the multiple types of investors and funding you will face:

  • Angel/Seed

It is the initial investment you ask when your app is still a concept. With no visual representation for the idea, it is the most challenging funding to gain. You need to convince the investors of your app’s value in terms of increased traffic, user engagement, and monetary benefits. For angel funding, conduct thorough market research so you have the answers to all potential questions the investors may ask.

  • Venture Capitalists

According to the investors, with funding from venture capitalists, you should be willing to make a few adjustments to your idea. The investors want a faster return on investment, so they will suggest changes to suit their goals. Not only is it a time-consuming route, but it also requires your app to be past the groundwork and on a stable path to success.

To gain venture capital, you need a captivating pitch to intrigue the investors. However, you can receive funding at any time of your product development journey, during its early life or after it has picked up a bit of traction.

  • Personal Network

Instead of looking to external companies and large-scale venture capitalists, you can also search within your network for app funding. For that, you need to have secure connections. From close relations, including friends and family, to distant ties, like ex-coworkers, bosses, and professors, all are potential investors.

Stretching your boundaries, you can also ask your network to look into their social circle for investors or suggest referrals.

  • Crowdfunding

Crowdfunding is a type of collaborative fundraising via the internet. It is divided into three styles, including investment funding, donation-based, and reward-based.

Investment funding is where a group of entrepreneurs collectively purchase company equity, including shares, revenue shares, debt, and more. Investment funding gives each entrepreneur complete ownership and control of his shares.

On the other hand, donation-based funding allows people to raise funds for issues, including natural disasters, cancer treatments, animal shelters, and more. With donations, donors don’t expect any kind of return for their investments.

As the name implies, reward-funding is where entrepreneurs gather money for their product development by offering investors a reward for their contributions. Prizes can vary from early access to a new app, a free product, or their name in film credits. Kickstarter and Indiegogo are two platforms where you can launch your crowdfunding campaigns.

  • Bootstrapping

Bootstrapping is the initial investment entrepreneurs put in to validate their idea, develop a prototype, and research its market worth. One advantage of bootstrapping is that it gives you complete ownership of your app and the development process. It also helps you move past the drawing board stage to getting in front of investors for further financial investment.

  • App Contests

App contests are incredibly competitive, but they provide entrepreneurs a chance to showcase their idea to investors and other corporate officials in the industry. Business incubators, primarily, run these contests with top investors and venture capitalists as the judges.

Much like angel or seed funding, it provides entrepreneurs with the initial funds they need to launch the app development processes. But even if you don’t win, you still get an opportunity to build your network for future project ideas.

Read More: 100+ Top Mobile App Ideas for Businesses

Pitfalls To Avoid When Trying To Get Investors For Your App

Most of the common mistakes when approaching investors have nothing to do with the app itself and everything to do with how founders talk about it, so it’s worth knowing what to avoid before you ever step into the room. Some of this overlaps with everyday development problems founders run into, but the mistakes below are specific to the pitch itself. 

1. Believing You Don’t Have Competition

With how far and fast the world is progressing, it’s impossible for there to be no competition in your industry. A simple Google search can show various businesses operating in the same industry, offering alternative solutions to your product idea.

Additionally, if you claim to have no competitors in front of investors, they are likely to find you naïve with no understanding of your market.

2. Obsessing Over Percentages

While it’s good to be confident in your idea, investors want you to be realistic, not idealistic. Instead of stating impractical numbers for revenue like $5 million in five years, avoid assumptions that are difficult to justify.

Be realistic as you mention what you aim to achieve if you want investors to support your idea.

3. Asking Investors To Sign An NDAS

Many investors tend to have a policy against signing NDAs. It puts a barrier between you and the investors, limiting your connection and understanding. The question here is, why are you sharing the idea if it is immensely confidential?

4. Providing A 50-Page Business Plan

As mentioned before, investors are busy people; they don’t have the time to read and analyze a 50-page app business plan. Additionally, a pitch deck with 15 or more slides will also fail to grasp their attention and interests.

A presentation with ten or fewer slides and a 2-3-page document containing financial prospects will be sufficient to gain mobile app investors.

5. Pitching To Investors With Different Interests Than You

Not all investors share the same interests in where they spend their money. Some may be interested in tech solutions, including mobile apps, web apps, and more. Contrarily, others may solely invest in the biotech industry, entertainment, or media platforms.

Before you pitch your idea, research the investors to ensure your app is something they’ll find interesting.

Read More: How to Start Building Web Apps from Scratch?

6. Presenting Unrealistic Business Valuation

With the ups and downs of the market and economy, you can’t be overconfident in your business valuation. If, for example, you mention in your pitch deck that you want an estimate of $150 million after just a month of launching your idea, the investors will disregard you instantly. Ideally, you should avoid discussing valuation in the first meeting.

7. Prioritizing Fundraising

A key to getting app funding is that you don’t limit your sources. Target all investors who share an interest in your app niche and fundraising opportunities like crowdfunding and personal connections.

Read More: Leading Business Benefits Of Mobile App Development

Why Work With Cubix

Raising money is only half the challenge; building an app that lives up to the pitch is the other half. Cubix is a custom mobile application development company that has helped founders across fintech, healthcare, logistics, and consumer apps turn early concepts into products that are ready to scale. 

Cubix’s team supports founders at every stage of the journey: shaping the initial idea, building an MVP that’s actually investor-ready, and keeping timelines and budgets predictable along the way. From fintech to healthcare to consumer apps, the goal is the same: give founders a technical partner they can point to with confidence when an investor starts asking hard questions about how the product actually gets built.

Final Thoughts

Getting investors for an app isn’t about having the flashiest idea in the room; it’s about proving, with real research, a working prototype, and honest numbers, that your idea deserves the risk. Understand your niche, build something investors can actually see and use, know your funding rounds, and avoid the pitching mistakes that turn investors away. Do that consistently, and the funding conversation becomes a lot less intimidating.

Frequently Asked Questions

1. How much equity should I give up when raising my first round of funding?

There’s no universal number, but most pre-seed and seed founders give up somewhere between 10% and 20% of equity per round. The right amount depends on your valuation, how much capital you need, and how much leverage you have going into negotiations.

2. Do I need a working app before I approach investors?

Not always. Angel investors and pre-seed accelerators will often fund a strong idea backed by market research and a clear MVP plan. However, the further along you are, whether that’s a prototype, an MVP, or early traction metrics, the easier it becomes to raise money and the better terms you’re likely to get.

3. What’s the difference between an angel investor and a venture capital firm?

An angel investor is usually an individual investing their own money, often at the earliest stages. Venture capital firms manage pooled funds from multiple sources and typically invest larger amounts at later stages, usually expecting a board seat or more formal involvement in return.

4. How long does it typically take to close a funding round?

On average, closing a round can take anywhere from three to six months, from the first investor meeting to funds actually landing in your account. Having your traction metrics, pitch deck, and financials ready in advance can meaningfully shorten that timeline.

5. Can a mobile app development company like Cubix help with fundraising directly?

Cubix doesn’t act as a financial advisor or broker funding deals, but it plays a critical supporting role: helping you build a credible MVP, a working prototype, and a technically sound product that gives investors confidence your idea can actually be executed.

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Market Research Analyst

As a Market Research Analyst with over 6 years of experience, Kainat transforms market intelligence into actionable business strategies. By analyzing industry trends, customer behavior, and competitive landscapes across AI, software, mobile apps, and gaming, She helps organizations uncover growth opportunities, reduce risk, and make data-driven decisions.

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