How to Raise Capital for Your App Business in 4 Minutes | What Investors Need From You

What do you need to raise money for? You've gotta know what you need to raise the money for if you're going after investment capital, and it has to make sense for your business. I got an email from a YouTube viewer, says he needs money to launch his app company, and the money is going to be used for hiring a professional app developer. And what are my suggestions? So this is from Orestes D92. Here's the problem. If you are an app company, if you're a technology company, you're making apps, you need to have somebody on board who knows apps. It's really hard to go out to raise capital for a company that wants to make apps but doesn't have anybody who knows how to make apps on board. Does that make sense? If I was an investor If I'm gonna give you money, I wanna see that you have this person already on board on your team. Not that you need to go hire somebody. This is a huge deal. This isn't sales and marketing. This is creating your product. You need to have these skills already on board on your team, or people aren't gonna give you the money to grow it. So I see two options for you here, okay? Number one, partner up with an app developer. If you have great visions for where you want to take the apps, you have some great mission that you want to solve, a huge challenge that you're trying to help people overcome, and you're gonna solve it through apps. Partner up with somebody who has had success and knows the app market and needs somebody who can do the CEO job, who can do the sales and marketing. You have to bring something to the table for your company. What is it? It's not gonna be the technical skills, so find somebody to partner up with who has the same belief and same believes in the same mission that you're all about and bring them on board, then go get capital. Because it's really hard for an investor to put money into a company where you don't have the core competencies already there. The second option is to start a lot smaller, just get a little bit of money and, and hire an app developer part-time on the side just to get a product up with the longer-term goal to bring on a full-time app developer, but you need somebody technical guiding the product. Right, as a VC, I would never invest in a company who didn't have their own CTO. Right, if you're a technology company, you need an awesome technology engineer guiding the product and the vision. You need them on board already. It's okay to have somebody come on and do the sales and marketing, you can hire for that, but It's hard to have somebody come on board to be your CTO. That's a hard person to find, to hire. And if you are a technology company without a technology person, you don't have much to go with. So I'd really try to do my homework and try to find somebody who could partner up with, because that's going to be your longer-term strategy for success. It's having somebody who's invested in the business, who isn't just an employee, who this business means something to them, they're gonna put everything they've got into it because they have an equity stake in the company. And then from there you can raise money to help expand the business. You have a working product, now you need to go out and sales and marketing it. That's a lot easier to raise. So good luck, believe, I know it's hard, and really spend your time finding the right person. Don't just jump into something because you think it's a good idea. It's gotta fit. The person has to fit with their skills and also their belief and their motivation for starting the business is for the right reasons. Believe. For those of you watching, like the video, please give it a thumbs up below. Let me know what you think. Leave a comment underneath. It makes me want to do more videos for you. Thank you so much, and I'll see you soon.