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22 July 2021

Finding Investors for Software Development: How to Deliver Your Idea?

business

You may have a great idea. But, in order to turn your idea into reality, you need funds.

Of course, there are many different ways to raise funds. However, keep in mind that the competition for investors’ funds is really high. Even if you’re confident about your idea, you must make investors believe in the potential of your project.

It may be quite a challenge. However, where’s a will there’s a way. With the right mindset, good idea, and your time invested in learning and preparation, it’s just a matter of time until you get an investor to write you a check.

If you're not sure how to find the right investor for your project, there’s no need to worry. I have prepared some ideas to help you raise capital like a pro.

How to Present Your Idea

It’s not so easy to impress your investors of choice. When the future of your idea depends on them, you probably feel pressured and stressed to perform at your best, so you can sell it and present it in the best light possible.

Thankfully, there are some exercises that will help you prepare your pitch and hopefully bring the potential investors to their knees.

Do your investor research and find the right investor

Let’s start with a pre-step. Once you’re ready to present your idea to the wider audience, you must start your search for a well-suited investor. You must not fly blind; do your research and learn as much as you can before you go through the pre-selection process.

Even though it may sound obvious, let me remind you that you should ensure that the possible investors have the funds and right resources to invest in your idea. There’s no point to spread yourself too thin and waste your and other people’s time when there’s no chance to establish a fruitful cooperation.

Have a prototype ready

OK, great, you have found THE ONE. Now it’s time to use your advantages and sweep the investor of their feet.

However, they’re not going to entrust you with their precious funds on your say-so. You can’t promise them the moon and you must prepare something to convey your idea. For many investors it may be difficult to fully comprehend the potential of your idea if they can’t see it and hopefully use it too. Whether you develop a prototype, or a more detailed and functional MVP, is your choice. However, remember that he more details and functionalities you add, the better.

Having a prototype or an MVP shows to the investors that you’re serious. Anyone can come up with a great idea, but not everyone has the resources and knowledge to execute it well. By presenting your prototype or MVP you make a strong impression and spark investors’ curiosity.

Know your numbers and show realistic forecasts

The presentation went well. You intrigued your potential investors with your creative idea and good presentation skills. Now it’s time for business.

Investors are not going to give you their money just like that; you must prepare yourself for many specific questions. How much would it cost to make your product? What is your revenue model? What are your future projections?

To do well, you must know your numbers. The more clearly you can present your data, the better. When it comes to financial matters, there’s no room for understatements. That’s why you must ensure that your forecasts are not just bogus numbers. They should be backed by competitor analysis and market data.

Be clear about what you want

You know your idea and the market well. You also know there’s high chance, that it might succeed. Don’t act like you don’t believe in it.

Confidence is key to success. Remember that you also need to secure your business and look out for number one. That’s why you should also be clear about your requirements and rules of conduct. Be precise in asking what you are looking for. Whether you want an investment or partnership or both, make sure that both you and the investor are on the same page.

It is extremely important to be clear about the details and be specific with your requests.

Belive in Your Idea

As long as you’re prepared and have confidence in your idea, it’s just a question of time until you get an investor to support your work.

However, whether you land the funding or not, it is important to stay connected with the investors. You never know how they or their connections can become a resource in the future.

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Author
Piotr Serwin
Investment Director at TenderHut

Investment Director at TenderHut and startup mentor in acceleration programmes at Huge Thing and Massachusetts Institute of Technology Technology Forum. Founder of Fintech Trends - a platform with educational and networking meetups for fintech professionals and with the only regular fintech startup competition in CEE. He worked in London City Trading as a stock trader who also dealt with currencies and interest rate instruments. Not only has he built a company in the area of trading financial instruments completely from scratch and using algorithms, but also founded a personal data consulting and technology organisation.