However, this question still causes lots of stress among startups. This is why we crafted this guide to help you understand how you can successfully get fundraising with your no-code application. Even though no-code is still on its way to becoming an ultimate choice for most companies, investors will consider your app only if it becomes more commonplace. Let's find out the best tips to make sure you will be fundraised below.
1. Choose Right Investors
Even though you may think that the more investors see your startup, the more chances you get to be invested, in reality, only 1 out of 10 investors will be interested in your app. However, even this one investor won't give you money because of many factors that you didn't consider in advance.
This is why you need to choose your investors wisely according to several factors. First of all, try to learn more about a particular angel investor, like whether he has already given money to no-code startups, what is his appealing industry, what he likes about startups and more. This way, you will be able to craft a list of best investors for your idea and no-code app and reduce the risks that they don't like the idea of no-code app development during your pitch.
It is also recommended to check for crowdfunding platforms, as they offer you a vast range of people who will invest in your startup for a small amount of money, but they are more interested in new tech tools like no-code. Make sure you check all available options for your successful investment before presenting it. Here is how to present your idea to the two most popular categories of investors:
How To Pitch Venture Capitalists
Venture Capitalists are more interested in detail-oriented pitch desks packed with many numbers. They can sponsor your development on behalf of a group of numerous investors, meaning they have strong obligations to decide wisely. When presenting your startup to VCs, focus on minor details, data, metrics, as well as potential risks, and your solutions.
How To Pitch Angel Investors
Angel investors represent net worth individuals, so they can write checks as sole investors. Therefore, they are usually quicker to act and invest in you without many months of waiting. When you pinch a startup to angel investors, it is best to focus on your long-term plans, goals, ways you will achieve these goals, potential upside, and the market your product addresses.
2. Prepare For The Appropriate Amount of Time
Since most investors take meetings in slots, you will know how much time you have to present the idea. However, the practice shows that it is usually between 10 and 20 minutes, while in some cases, it is longer.
Imagine the worst case where you have only 10 minutes. The pitch will be significantly different if you have 30- minutes. Do not try to fit all the information within 10 minutes; create a detailed plan, cards if you need to, and show numbers as the main priority. You should also fit the Q&A in your 10-minute presentation, which will typically be allotted also.
We also recommend you practice your pitch in advance with your friends or family. Always set a timer, try to fit ideally in 10 minutes, and prepare your voice and tone of the presentation. Ask your family to prepare various questions so you won't be frustrated when investors want to know something. Set a camera to see how you look, whether you are confident enough in your idea, how you act, and whether you can convince people that the startup is worthy.
This is especially vital when you run a no-code startup, as not everyone will love this idea, and not everyone will understand. While some may reject your application, others will be happy to hear why you choose their approach. And when you are confident in what you do and how this will help people - most investors will be glad to help you with the product. So convince yourself first and then pitch to investors successfully.
Get Our Free Pitch Deck that Will Get You Funded!
3. Provide Worthy Reasons Why You
Even though you do not always need to highlight that your product is built using no-code tools, some investors will pay attention when you say that. And that's okay; you do not need to worry. You just need to provide worthy reasons why no-code development is the best choice for your startup.
Reasons may vary from the cost-effectiveness of this approach and timelines to the best tech stack for your product. So make sure you prepare in advance why you choose no-code app development and show them wholesome reasons why they need to invest in this approach as well.
No-code is becoming popular every day, but you need to understand that not everyone wants to invest in this. Nevertheless, not everyone wants to invest in regular coding. So you may become the ultimate choice among all other startups that run on coding just by showing the value for investors no-code development can bring for them as well.
What To Cover During Your Investor Pitch
1. Start With Your Elevator Pitch
The last thing you need is an investor who doesn't follow what you have been saying and has no idea what your app should solve in the world. So, the main key when you pinch investors is to start with your elevator pitch. This represents a summary of the entire pitch you're about to present but wrapped up in about 1 minute.
The high-quality elevator pitch should include:
- What the problem is
- What is your solution is
- What is your core value prop is
When you include this in your presentation, you can make sure the investor understands what you are going to build and allow you to move to the second stage.
2. Tell A Compelling Story
Most startups find this step easy as it is not challenging to tell the story behind the idea. Think about what was the main problem you found when coming up with the idea. And then, you realize that you have relevant experience and knowledge to fix these issues by building your no-code app.
The main goal of this stage is to:
- Calling out a specific audience (people that will benefit from your app)
- Identifying a common problem
- Describing the emotional reaction they have to that pain point
3. Provide Details
Regardless of how exciting your story is, investors are not readers, and they need real facts and data to make their decision. So put as many details as you can when pitching the startup. Always mention some facts and data throughout your pitch presentation to show the value for investors and the potential return from their money.
4. Stay Transparent About How Much
Investment You Need, And How You'll Use It
Investors don't want to hear an unclear amount of money or that you will be happy to get a smooch as they can provide. This seems to be unprofessional, and investors don't like this idea. You need to estimate the amount of money you need to successfully launch your startups as well as the exact ways you will use this money later.
Describe the following points:
- How much funding you're seeking
- How long do you expect that to last
- How you will use money
- When you are going to be when the money runs out
5. Go Big On The Market Potential
When talking about the market that your application is going to address, you have to go big and ask yourself several questions: Let's consider all possible current and future use of your application, estimate the real size of the addressable market you want to enter.
Investors won't be motivated by small numbers, but they also don't want you to lie. So before going to investors, you need to make sure the market you choose is large, and you will be able to attract a large number of people. Savvy investors will know lied numbers when they see them; therefore, any claims regarding the size of your market should be effectively grounded in sound figures.
6. Describe The Competitive Landscape
We all know that every industry has its own competition that is rarely low. Even if you are going to become a pioneer in the market with specific products, you'll still be competing for customers in the domain, as well as waiting for other startups that will soon enter your industry.
Make sure you perform comprehensive research on the competitive landscape of your future application. Do not just say numbers; show main competitors that have already established themselves, show why people will use your product over those who have already launched, and present an in-depth analysis of your industry. Here you can admit that no-code products are much easier to use and quicker to update when new tech tools arrive.
7. Provide Potential Risks To Your Business
All businesses may face risks when starting to enter the market. And investors know that. Do not try to be optimistic in the stage; the goal is to show what real risks you may face and how you are going to overcome them in case of failure. This will help investors accurately estimate your idea before investing.
Here are the most common examples to include in your investor pitch include:
- Legal risks (with healthcare app)
- Technological risks (with blockchain apps)
- Regulatory risks (with banking apps)
- Political risks
- Liability risks
And you have to be well prepared to answer all the following questions regarding mentioned risks. Create a detailed plan on how you will prevent these risks and how you will cope with them when they happen.
8. Describe Your Marketing Strategy
It is not enough to build a product. Investors always want to know how exactly you will attract people to your project and what marketing strategies you will apply. It is best to hire a professional marketer to help with this stage, as it also plays a crucial role in your pitch deck.
These may include marketing via social media, creating a landing page, promotions, and more.
They will also want to know how you will keep customers engaged in your app for a long time. It is best to prepare all channels in advance so it will be easier for them to see how things are going and show that you are serious about this stage. Again, show estimated numbers and analysis that will describe the potential outcomes of each marketing campaign.
9. Describe Your Revenue Model
Essential point. A revenue model will describe to them how you are going to monetize your product and, therefore, provide a high return on their investments. When describing the stage, you may include:
- Different plans/tiers
- Whether you're charging a monthly, annual, or one-off fee
- Initial pricing points
- In-app purchases and more
A high-quality pitch also includes a quick breakdown of how this model relates to the final annual revenue goals and what are the best ways to reach the needed amount of money.
Final Thoughts
Startups need to be well-prepared when showing their idea to investors. No-code startups may require more time and resources to get fundraised as not everyone knows why no-code is better than coding. This guide hopes to show you the best ways you can get investment with your no-code application, and do not worry about this approach when pitching. Remember that quality application also plays a great role in your success.
