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"What I know how to do best is the app store" Set yourself up as an _angel investor for iPhone apps_. Like a mini-mini-mini YCombinator. Based on your experie

by portman 17y ago

"What I know how to do best is the app store" Set yourself up as an _angel investor for iPhone apps_. Like a mini-mini-mini YCombinator. Based on your experience, you should be very good at evaluating an individual's chances of creating a successful app. Solicit pitches (HN would be a great source) and make 5 small investments of $5k each. If you make another $25k next month, do another 5 investments. Rinse and repeat. You probably can't produce 5 apps per month on your own. But you can use those same skills to invest in 5 apps per month. There is greater risk (you could lose all 5 investments) but also greater reward (each investment could in turn become its own $25k-mo company). Good luck!

maxklein 17y ago
Actually, there is one thing I can do perfectly now: I can listen to an app idea and tell you how much money it will make. If I knew developer who needed 5k to make apps, I'd def invest in them. I don't know any however, the ones I know don't need 5k.
- ericb 17y ago
  Any tips on evaluating app ideas?
  - maxklein 17y ago
    It's a complicated collection of things, but a lot of it boils down to: how many people will get what the app does from the title and the icon. And also, will your consumers search for the app? For example, if I had an app called "Table Tennis" it will make money. If I had an app called "River" it is less likely to make money, unless strongly externally marketed. First app has search right from release, and everyone gets it instantly. Second app says nothing from the name and nobody searches app store for "river". You need a constant low source of users for word of mouth to work.
- thetrumanshow 17y ago
  Turn this into a service.
- joelhaus 17y ago
  Hedge the risk incurred by your "mini-venture app fund" with other peoples money. Given your track record with app development, there would certainly be demand from third party investors for the expertise you bring to the table. Simply offer investors less preferable terms than those you are able get from the app developers that pitch their ideas to you. Not the easiest approach, but after addressing any regulatory hurdles, lining up investors and getting a system in place, you can focus on investment opportunities and leverage up the capital you are currently earning. Your passive investors will be more likely to part with their money if you have some skin in the game yourself. This will have the added benefit of allowing you to diversify into a wider range of apps with higher monetary barriers to entry.
joshu 17y ago
http://en.wikipedia.org/wiki/Accredited_investor http://en.wikipedia.org/wiki/Accredited_investor
- portman 17y ago
  I'm not sure why you linked to that, but if you're suggesting that the OP must become an accredited investor in order to angel invest, then you are incorrect. I will fight your link with another link: http://www.sec.gov/answers/rule504.htm http://www.sec.gov/answers/rule504.htm

by portman 17y ago

maxklein 17y ago

Actually, there is one thing I can do perfectly now: I can listen to an app idea and tell you how much money it will make. If I knew developer who needed 5k to make apps, I'd def invest in them. I don't know any however, the ones I know don't need 5k.

ericb 17y ago
Any tips on evaluating app ideas?
- maxklein 17y ago
  It's a complicated collection of things, but a lot of it boils down to: how many people will get what the app does from the title and the icon. And also, will your consumers search for the app? For example, if I had an app called "Table Tennis" it will make money. If I had an app called "River" it is less likely to make money, unless strongly externally marketed. First app has search right from release, and everyone gets it instantly. Second app says nothing from the name and nobody searches app store for "river". You need a constant low source of users for word of mouth to work.
thetrumanshow 17y ago
Turn this into a service.
joelhaus 17y ago
Hedge the risk incurred by your "mini-venture app fund" with other peoples money. Given your track record with app development, there would certainly be demand from third party investors for the expertise you bring to the table. Simply offer investors less preferable terms than those you are able get from the app developers that pitch their ideas to you. Not the easiest approach, but after addressing any regulatory hurdles, lining up investors and getting a system in place, you can focus on investment opportunities and leverage up the capital you are currently earning. Your passive investors will be more likely to part with their money if you have some skin in the game yourself. This will have the added benefit of allowing you to diversify into a wider range of apps with higher monetary barriers to entry.

joshu 17y ago

http://en.wikipedia.org/wiki/Accredited_investor http://en.wikipedia.org/wiki/Accredited_investor

portman 17y ago
I'm not sure why you linked to that, but if you're suggesting that the OP must become an accredited investor in order to angel invest, then you are incorrect. I will fight your link with another link: http://www.sec.gov/answers/rule504.htm http://www.sec.gov/answers/rule504.htm