So a few years ago I had an awesome app idea for boating... (still to this day I think it could be awesome) I planned it out and even found investors to join. After raising money and putting my investment to the table. we unfortunately found ourselves dealing with a scam app development company. We lost our whole investment with an app that does not even connect to servers... I have found it very hard to find true people who want to succeed and take a risk after this. Does anyone have any suggestions on steps I could take to find other users who share the same vision and how to find capital again for the endeavor?
It's difficult to re-gain confidence of investors when the investment has gone to zero. At this stage, you need to take the lead, find a way to build an MVP of the APP. Next, do BETA that shows the technology is sound, and there is a demand for what you've created. The entrepreneurial journey is never easy. Lots of land mines and pivots along the way. it's on you now Adam to show you can make this happen.
Unfortunately, if you have nothing from those investment dollars...no salvageable product, you are likely going to have to fit the bill..depending on how much it was. In other words, if you raised $100k and contracted those investors to 50% (in keeping numbers round and easy)...you are not going to find an investor to invest and have ROI go to those investors. You need to square away your contracts with the past investors first. You also don't want them coming after you if you move forward with a new group..and have success with the same product..one that works. Very likely your old investors will work with you so they gain something back on their first investments. But you should consult an attorney and do everything by the book so 1. you don't scare off future investors and 2. you don't get sued down the line. You should also have the attorney review future contracts, because if your developers delivered the subpar product you suggest they either A. are in breach of your contract, or B. you had a terrible contract with them in the first place. I wouldn't give up on the app if you believe in it.
Hi Adam, I had similar experiences, but I am very careful in that now. We spend a lot of time in pre-qualification and thoroughly check references and developed apps also on functionality. Eventually if I contract with an app development partner, then only by strict milestones and always starting with a quick and easy MVP. But we also dont spend much money on app development, because it became just a commodity available at pretty low price. UX/UI design requires more effort and we usually split it from the app development partner.
I wouldn't necessarily agree with that opinion: it's your reputation that is at stake and you might get some reimbursement if the claim is as it looks. So, you can kill two birds (not that I am a proponent of that:)): (1) mention to new investors what you are doing to remedy the situation and (2) potentially get a restitution.
Maybe take your current app to a better company that you can trust and have them fix it and give them equity in the company.
Yeah I might agree with Steve, setting small milestones and requirements prior to execution/ development is very necessary step to ensure safety which we also do with our client even if they are not aware of it we make them aware. It not only clears the consciousness of the client but also the agency is also more happy to work with clients knowing that the client is aware. So for this to happen, the client/ founder needs to do their homework. But, if you are still perusing the same app and haven't lost your funding get in touch I might help you out. But, if not then as David M has mentioned to inform the investors about the situation and make sure that they understand that this might can happen to anyone. To ensure your safe pursuit for new investors make sure previous ones will not bad mouth as the industry is small and everyone is connected bad word of mouth spreads fast and will effect your goodwill.
How about this ... ? Contact me on Linked In and I'll see if I can help you finish the product. Yes, I know you have no money. Contact me anyways.