How to pitch your app idea to investors and get funded
Updated: November 23, 2024
21 min read
Taking the funding route isn’t for all mobile apps, but if you’re approaching your mobile app more like a “mobile app startup,” then you’ll have to learn how to pitch your app idea to investors.
That’s because funding can play a big role in how you start, grow, and scale your app—after all, you’re not just building an app; you’re building a business.
But to connect with investors, your pitch needs to do more than present your vision; it must show how your app can thrive in the market, scale, and deliver solid returns.You’re looking at things like market fit, unit economics, revenue models, and more. So let’s see how you can craft a compelling investor pitch that combines your app’s unique value with its potential for growth, so investors get on board.
Here goes.
Preparing for your pitch
Marketing research for a mobile app investment pitch deck will vary depending on the stage of funding you’re targeting—seed, Series A, or later rounds.
Each stage requires a different focus to meet investor expectations and demonstrate how the app aligns with their goals for growth, scalability, and return on investment.
So let’s see how preparing for your pitch differs for each funding stage.
1. Pre-seed and seed funding: Validating your mobile app idea
At the seed stage, your goal is to show your investors that there’s a genuine market need for your app and that your app addresses that need effectively. So your focus areas are market need and potential here.
Here are some pointers to keep in mind for researching for your seed funding pitch:
- Target market: Define your target audience clearly. Here’s our complete guide to TAM (Total Addressable Market), SAM (Serviceable Addressable Market), and SOM (Serviceable Obtainable Market) analyses to help you with this.
- Define the problem: Provide insights into the problem you’re solving and why your app is the right solution.
- Competitor analysis: Identify existing competitors and show how your mobile app is different or better. Investors will want to know if the market is already saturated or if your app can carve out a niche.
- Customer validation: Include data or surveys that show early interest from potential customers, indicating demand for your app.
- Product-market fit: Demonstrate early traction, such as beta test results or user feedback, to show that your app resonates with your intended users.
Let’s look at Blush.
Although the invite-only dating app Blush launched in a highly saturated market, it successfully spotlighted a common problem with the mainstream dating apps—that they stop at the swipe.
Blush wanted to “bring back the nostalgia where you spent time courting and getting to know someone.” Addressing this gap by adding offline junctions to the online dating journey, Blush demonstrated its potential to disrupt the dating app space and bring lasting value to users, ultimately winning over investors. Blush secured 7M in seed funding by convincing investors of the unique niche it could carve out for itself.
This underlines how, with early funding, it’s important to prove that a problem exists which your app aims to solve.
2. Series A: Growing your app development team and improving it
For a series A funding round, your potential investors want to see that your app has passed the early validation phase and that you’re ready to scale. They need to understand how the product is improving and how it can reach a larger audience.
Your focus areas for this round are scalability, monetization, and early traction.
Keep these considerations in mind when researching for your Series A funding pitch:
- Customer acquisition: Show how you’re acquiring users (e.g., organic growth, paid marketing, partnerships). Include metrics like customer acquisition cost (CAC), lifetime value (LTV), and growth rate.
- Market size and segmentation: Provide a deeper analysis of your total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM), demonstrating how you plan to capture more of the market.
- Monetization strategy: Explain how you plan to monetize your app, whether through subscriptions, in-app purchases, or ads. Include data on early revenue, conversion rates, and other monetization metrics. If you use a revenue management solution like Adapty, this part becomes fairly easy.
- Marketing channels and strategy: Outline the marketing channels you’re focusing on (social media, influencer marketing, paid ads, content marketing, etc.) and why they are effective for your target audience.
- Product improvements: Detail improvements you’ve made based on user feedback and your plan for ongoing product enhancements.
3. Later rounds (Series B and beyond): Expanding marketing efforts
For Series B funding rounds and beyond, investors are looking at some solid evidence of market fit, consistent growth, and your ability to expand and scale sustainably in the long term.
So your focus areas are market expansion and dominance here.
At this stage, your marketing research revolves around:
- Market penetration: Provide data on your current market position and outline your strategy for expanding into new regions, demographics, or verticals.
- Advanced analytics: Investors will expect more sophisticated data on user behavior, marketing effectiveness, and return on investment (ROI) across different channels. This includes churn rate, user retention, and user engagement metrics.
- Brand positioning and awareness: Focus on your brand’s market presence and how it’s evolving. Include data on brand recognition, media coverage, social proof, and partnerships.
- Customer acquisition and growth optimization: Discuss how you plan to optimize customer acquisition efforts—whether through better targeting, referral programs, or data-driven marketing initiatives.
- Long-term marketing strategy: Outline your long-term marketing strategy, including potential future partnerships, influencer collaborations, and strategies for user retention as your app scales.
- Global expansion: If applicable, provide insights into international markets and how you plan to tailor your marketing efforts to different regions and cultures.
Once you’ve researched for your pitch, it’s time to translate your findings into your actual pitch copy.
Crafting your pitch
The research at each stage of funding will directly inform how you craft your pitch. Here’s how the data from each research stage translates into specific sections and elements of your pitch, tailored for pre-seed/seed, Series A, and later rounds.
1. Pre-seed and seed funding
Here your pitch needs to validate the problem and how your app is the solution, demonstrate early interest, and show potential for market entry.
Here are the key elements your pitch needs to address:
- Problem statement: Use research data to clearly articulate the pain point your app addresses. Leverage market research and competitor analysis to prove that the problem is significant and widespread.
- Example: “Despite the rapid growth of the dating app market, users struggle to find meaningful connections that go beyond surface-level matches. Studies show that X% of users abandon dating apps that don’t offer personalized, deeper compatibility features.”
- Solution: Introduce your app as the solution. Use customer validation research (surveys, beta test feedback) to show that users believe your solution works and has demand.
- Example: “Our app offers AI-powered personalized matchmaking, with beta users reporting a 40% increase in meaningful conversations and 3x higher match quality compared to leading dating apps.”
- Market validation: Highlight early traction. Present any data on user interest (downloads, early registrations, survey responses).
- Example: “Within the first three months, we acquired 5,000 users with zero marketing spend, demonstrating strong organic demand.”
- Competitive analysis: Explain how your app is differentiated from competitors and what makes it unique. Back this up with research showing gaps in the market.
- Example: “Unlike [Competitor X], which relies on swiping based on photos, our app uses a unique algorithm that matches users based on life goals, interests, and core values, creating a deeper foundation for lasting relationships. This sets us apart in a market saturated with superficial connections.”
2. Series A funding
For this funding rounding, you need to demonstrate product-market fit, show your current app traction and growth, and outline your scaling strategy.
Here are the key elements your pitch needs to address:
- Market opportunity: Use your research on market size (TAM, SAM, SOM) to show how large the market is and how you plan to capture a larger share.
- Example: “The global dating app market is projected to grow to $X billion by 2026. Our target market is Y% of this total, which equates to over Z million potential customers.”
- Customer acquisition: Present data on customer acquisition efforts. Share CAC, LTV, and user growth metrics to show that your business is scaling effectively.
- Example: “Our customer acquisition cost (CAC) is $15, with a lifetime value (LTV) of $100, reflecting a 6x return on investment. We’re seeing month-over-month user growth of X%.”
- Monetization strategy: Provide data on how you plan to monetize and any early revenue performance. This could include subscription models, in-app purchases, or ads.
- Example: “Our freemium model has already generated $50,000 in revenue in the past six months, with a 15% conversion rate from free to premium subscriptions.”
- Product improvements: Highlight improvements made based on user feedback, showcasing your ability to iterate and enhance the app to meet customer needs.
- Example: “After listening to user feedback, we introduced a ‘Matchmaker mode’ that lets users customize their profiles with deeper personality insights, resulting in a 30% increase in meaningful connections and engagement.”
- Marketing strategy: Outline which marketing channels have worked and how you plan to expand efforts. Share any data that shows the effectiveness of your marketing strategy.
- Example: “Paid social ads have been our most effective channel, driving a 5x return on ad spend, and we’re expanding into influencer partnerships to further drive user acquisition.”
Here’s another example:
Schmooze, the Gen Z meme-based dating app launched in 2021, positions itself as “the wingman Gen Zs didn’t know they needed—powered by cutting-edge AI and fueled by a rich tapestry of memes. It’s an experience that aligns with the psyche of today’s youth, offering a vibe-check that resonates with their unique cultural language.“
By successfully carving out a niche for itself and proving it had connected with its intended audience, Schmooze just secured its Series A funding (4M). The app pitched enhancing its AI features with this funding, with a significant portion of the funds allocated to product development and optimizing its algorithms to ensure they’re future-proof.
This is the kind of focus your pitch should have at this stage: demonstrating how your app has already connected with users, and showcasing the clear steps for future growth and innovation—especially product-led growth.
3. Later rounds (series B and beyond)
At this stage, your pitch needs to show scalability, how you plan to expand, and demonstrate a robust growth strategy. It needs to emphasize long-term sustainability and ROI.
Here are the key elements your pitch needs to address for these advanced funding rounds:
- Scalability and expansion plan: Use market penetration data to demonstrate how you plan to expand into new regions, verticals, or customer segments.
- Example: “We’ve successfully captured X% of the U.S. market, and we’re now preparing to expand into Europe, where the dating app market has grown by Y% annually over the last 3 years.”
- Advanced metrics: Provide sophisticated data such as churn rate, user retention, and user engagement to show your app’s long-term viability and sustainability.
- Example: “Our 6-month retention rate stands at 70%, with users engaging with the app an average of 3 times per week. Churn has decreased by 15% since implementing our new X features.”
- Global market potential: If applicable, provide insights into international markets and your strategy to penetrate those regions, taking into account cultural differences and localization efforts.
- Example: “We’ve conducted surveys in Europe and discovered that users there prioritize community features, which we plan to implement for a more localized experience in Q4.”
- Brand and marketing strategy: Showcase your brand’s presence and how you plan to expand awareness and engagement. Include research on your brand’s positioning, social proof, and media presence.
- Example: “We’ve increased our brand awareness through strategic partnerships with top dating influencers, which has resulted in a X% increase in app installs over the last 6 months.”
- Long-term vision: Provide a roadmap for the future, including marketing and product strategies, new revenue streams, and ways you’ll continue to scale sustainably.
- Example: “In the next 12 months, we plan to launch a suite of premium features focused on niche dating communities, opening up a new revenue stream and driving user engagement across specialized groups.”
Once you’re ready with your slides, it’s time for some presentation hacks.
Presenting your pitch
Here’s how you can present your pitch at each stage of funding, emphasizing key points and adapting your message to keep investors interested and excited.
1. Pre-seed and seed funding
Here, your presentation focus is to prove there’s a real problem, show that your mobile app is the solution, and demonstrate early interest.
Key considerations:
- Start strong: Open with the problem in an engaging, relatable way. Share a story or real-world example that makes the problem tangible.
- Example: “Imagine wanting meaningful connections instead of endless swiping, but every dating app feels the same—superficial. This is the reality for X% of dating app users, who feel they lack genuine opportunities for authentic connections.”
- “Show” the solution: Introduce your app as the solution to the problem you just highlighted. Use mockups, visuals, or a brief demo to show your app in action.
- Example: “Here’s how we’re different. Our app uses AI to recommend matches who share similar interests and values and comes with personalized conversation starters to get things going, making it easier to connect genuinely. Watch this quick 30-second demo to see our personalized approach in action.”
- Demonstrate early traction: Present your early traction data visually with charts or graphics to validate interest. Numbers can be hard to follow; use simple visuals to drive the point home.
- Example: “In just three months, we gained 5,000 users organically, showing there’s demand even before we start marketing.”
- Address competitors: Address competitors quickly but with strong differentiation points. Use a simple table or chart to show how your app fills market gaps.
- Example: “Here’s where others miss the mark. Unlike other dating apps, we prioritize compatibility and meaningful conversations based on shared interests, giving us a unique advantage in the market.”
2. Series A
With this funding round, your presentation focus is to demonstrate product-market fit, traction, and a clear scaling strategy.
Key considerations:
- Reinforce market size and demand: Use your market research data with a straightforward chart or diagram to show growth potential. Connect the data directly to your revenue opportunity.
- Example: “The dating app market is growing at X% annually. We’re targeting Y% of this space, giving us access to over Z million potential users. Here’s how we’re tapping into it.”
- Show traction with growth metrics: Use visual aids like growth trend graphs, user growth bars, or CAC vs. LTV comparisons. Show how these metrics align with sustainable growth.
- Example: “We’re achieving a 5x ROI on our user acquisition efforts, with a X% month-over-month user increase. This consistent growth shows our model is working.”
- Highlight user feedback and product iterations: Share testimonials or quotes from real users or beta testers to humanize your product’s impact. Then, explain any product improvements that have been driven by this feedback.
- Example: “Our users love the matchmaking accuracy, and based on their feedback, we recently introduced a compatibility score feature that increased user engagement by 35%. Here’s what a few users are saying.”
- Marketing strategy & channels: Use visuals to outline your marketing strategy and results. Include logos of key partnerships, screenshots of high-performing ads, or graphics showing channel performance.
- Example: “Social media is driving 5x ROI, so we’re doubling down there. Next, we’re launching influencer partnerships with top dating influencers to drive even more growth.”
3. Later rounds (series B and beyond)
For advanced funding rounds, your presentation focus needs to be to emphasize scalability, show you’re ready to expand, and outline a compelling, sustainable growth plan.
Key considerations:
- Show a strong market expansion strategy: Use maps, region-specific data, and projected growth charts to explain how you plan to expand. Show how localization or new features will help you penetrate these markets.
- Example: “We’ve dominated X% of the U.S. market and now plan to expand to Europe, where demand is growing by Y% each year. Here’s how we’ll localize our app to fit European preferences.”
- Provide data on advanced metrics: Keep investors engaged by simplifying complex metrics into easy-to-read graphs or metrics snapshots. Focus on LTV, churn, and retention to convey the long-term viability of the app.
- Example: “Our retention rate is 70%, and we’ve reduced churn by 15% through our new loyalty program, which translates to a stable, growing revenue base.”
- Demonstrate brand strength: Use visuals to showcase your brand presence and recognition. Include icons of media outlets where your app has been featured or screenshots of user-generated content.
- Example: “Our brand has reached millions, with our app featured in top dating publications and user-generated content driving organic growth.”
- End with a vision for the future: Show your long-term roadmap with a simple timeline or flowchart. Emphasize scalability, your plans for new revenue streams, and a roadmap for growth to get investors excited about the potential.
- Example: “Looking ahead, we’re expanding into specialized dating communities to target specific interests and lifestyles. This next phase will establish us as the leading platform for users seeking more authentic, meaningful connections, positioning us for sustained growth and new revenue streams.”
Following up after the pitch
After your pitch, following up is crucial to maintain momentum and deepen investor interest. Begin with a quick “thank you” email after the presentation, then follow up with a series of emails addressing any questions the investors might have, sharing supporting documents, or providing updates. Remember that investors are highly sought-after, so keep follow-ups focused and concise.
Wrapping it up…
Pitching to investors is about more than just securing funding—it’s about transforming your app idea into a sustainable business.
Whether you’re just starting out or ready to scale, effectively showcasing your app’s market potential, growth strategy, and revenue model can make all the difference here.
But now, you know all you need to… to turn all that investor interest into investment. Happy pitching!
Recommended posts