Why invest in apps on Appvestor
The world’s most popular apps are mostly the same year-in-year-out. They are products such as WhatsApp, YouTube, and Facebook Messenger. While it is possible to buy shares in companies such as Google and Facebook, these are not necessarily high-growth investment opportunities. They do not allow an investor to be exposed to a specific app either.
There are more than 2.5 million apps on Google Play and 1.8 million apps on the App Store.* Within this cohort are a small number of popular apps, which already have thousands of users and make good money – we call these “long-tail” apps. These apps could be much more successful. All they need is marketing support to ramp up their downloads.
The app economy is booming. In 2016 it generated €400 billion in revenues. Experts say it could reach €725 billion in 2022. Clearly, there is a lot of money to be made in this dynamic market. Breaking into the market has previously been hard because it’s difficult to identify the most profitable apps among the millions that are listed on the app stores, and even if you do find them, there is no obvious way to invest.
Appvestor removes both these hurdles by identifying, vetting and listing high-potential apps and making it easy and straightforward to invest.
Appvestor in figures
*This information is purely indicative and cannot be seen as a predictor of future returns.
There is no guarantee that the investment will achieve equivalent returns.
How we select apps
We know where to find ambitious developers with high-potential apps. We only accept apps that are already commercially successful. We look for evidence that app publishers have a thriving revenue channel, such as advertising for example, and can show that existing users have a substantial LTV (lifetime value).
We look in-depth at metrics such as:
• User retention rate
• Cost per install for new users
• Conversion rate of new installs to revenuegenerating users
Once we have selected the best apps, we run multiple test campaigns to ensure they perform well. We then list them on the Appvestor platform, giving you the chance to share in their success.
Funding Rounds Explained
App owners get the opportunity to list their app for funding on Appvestor if they have passed a vetting process. In this listing they specify how much they would like to raise, referred to as a funding target, and what they offer investors in exchange for funding. Apps may be listed more than once, provided they continue to meet the vetting criteria.
Funding rounds have a fixed duration in which to raise the capital needed for marketing campaigns – this is usually around 30 days. If an app reaches its funding target before the 30 days, it will not accept further funding during that round. An app needs to reach at least 75% of its funding target within the funding duration in order for the marketing campaigns to start. If it doesn’t reach the target, the funding round is cancelled, and the allocated funds are transferred back to the investors’ credit balance.
Typically, marketing campaigns for funded apps start within 2-3 weeks after the completion of the funding round.
How we run marketing Campaigns for apps
Once an app funding round is closed, Appvestor will create and run marketing campaigns to encourage people to download and use the app. We aim to launch a marketing campaign within 2-3 weeks of completing a successful funding round. These campaigns typically run for one to three months.
We run a variety of digital marketing campaigns consisting of banner ads, search ads, and video ads for the apps. These ads link people directly to the App Market Places like Google Play or the App Store where they can download the app. The link includes a small piece of code, known as a referral, which allows us to see which users come from specific marketing campaigns.
Deal terms explained
Every app listed on Appvestor offers specific deal terms to investors. They include the monetization method of the app, the revenue share and the revenue share period.
App owners have five ways to make money:
• Paid downloads (charging for the app itself)
• Freemium (app is free, but the user can buy premium virtual items)
• Sponsored content
• Advertising (ad-funded)
The monetization model listed in the deal terms is the income source from which the publisher agrees to share revenue.
The Android space is dominated by advertising. Indeed, stats show that 96% of all Android apps are offered for free* – and therefore ad-funded.
This is the percentage of revenue from new app users the app publisher gives to you in exchange for funding. New app users are those that downloaded the app because of the marketing campaign you funded.
The revenue share may vary from app to app. It is up to the app publisher to determine what share to offer to investors. We are connected with monetization partners of the apps in order to confirm the correct revenue reporting.
Revenue share period
This is the duration (in months) of the revenue share between the app publisher and you. The revenue share period starts the day after the marketing campaign has finished. E.g. if a marketing campaign runs for 2 months, then the revenue share period will only start the day after the marketing campaign has finished.
The revenue share period may vary from app to app. It is up to the app publisher to determine what sharing period to offer to investors. Deal terms are part of the Appvestor Agreement.
Once you have selected an app and indicated how much you wish to invest, we will generate an Appendix to the Appvestor Agreement for you to sign digitally. This will confirm the deal terms with the app publisher. You will receive an investment receipt within 24 hours for your financial records.
Your investment and revenues explained
When you log into your personal Appvestor account your dashboard will show the amount you have invested, the amount of that investment that has been spent on marketing campaigns, and the daily revenue per app.
Your total accumulated revenue and credit balance are also shown on the portal dashboard. You can cash out your earnings on a monthly basis or keep them on your credit balance to reinvest later.
You will start seeing revenues from day one of the marketing campaign. We track every download and allocate the income generated from it. The graph is an example of an app funding round that raised EUR 137k. The marketing budget (EUR 137k) was spent over 68 days. Break even happened 123 days after the start of the marketing campaign when the cumulated revenue reached EUR 137k. From this point onwards investors earned a profit on their investment.
*This information is purely indicative and cannot be seen as a predictor of future returns. There is no guarantee that the investment will achieve equivalent returns.
How the process works
We designed Appvestor to be quick and hassle-free. It takes minutes to sign up. Once you are on-board you can browse the apps selected by our experts, then choose how much to invest. We take care of all technical and administrative hassles, so you can sit back and watch your money grow.
1. Sign up for
your investor profile
Sign up online as an investor on Appvestor.com in a few minutes. It is completely free. Once approved, you can access the investor portal on my.appinvestor.com
2. Go to your investment wallet
In the investor portal, see all your investment features in one place. You can top up your wallet, so you are ready to invest in any app you believe in.
3. Choose how much to invest
Decide how much you want to invest and then follow the payment process below. You can then choose which apps you would like to split your investment across.
4. Follow your daily earnings
The portal dashboard shows how much money your app is earning. This starts at zero and quickly rises until investors have made their money back. After that, it’s pure profit.
Appvestor fees are simple and fair. You will only be charged a 3% comission on the revenue you make from your investments. There are no charges to use the platform, and we do not charge any investment fees, administration costs or any other hidden charges. This also means that Appvestor only receives a fee as long as an app is generating revenue.