SAN DIEGO (KGTV) — So, you have an idea for a new app, but don't know how to bring it to life. That's where an "incubator service" might help.
As we look at the creative ways people are making it in San Diego, ABC 10News met with a budding app creator, who's in the middle of his quest to get his idea online.
“'Finsoma' stands for Financial Social Media. It's going to be a company that allows people to enhance and find financial benefits for themselves,” said Mira Mesa resident, Kyle Walker, who has an idea for a new app to better match employers and job seekers.
“We wanted to make sure we could actually show them where they'd be working from a location standpoint,” said Walker. “Cubical, office, no windows, windows - we want people to know if there's room for promotion or not.”
Basically, the more information upfront, the better the fit, the longer and more productive the working relationship.
Kyle said when his idea for his service came to him, he began making notes, filling some 40 pages in a journal of things he’d like to do.
At 25, Walker says he's already found success in multi-level marketing, recruiting the best team members to help him reach his goals. But with this new venture, he felt he had the drive and vision, but not the specialized expertise to create his app. So, he contracted with an online incubator.
"We at Launchpeer want to partner with non-technical founders to go from napkin sketch to built, launched, and revenue,” says a recorded greeting on the Launchpeer website, founded by Jake Hare.
“Kyle's a very good example of the kind of entrepreneur that we work with,” Hare told ABC 10News. “From the background, he went through. The determination. And how hard he works.”
Jake says Launchpeer helps its customers, who they refer to as "founders," through every step of the app-launch process, from defining their goals, coding their apps, and reaching investors.
“I'd say that typically a normal path for the founders we work with, is they start off with just a napkin sketch, nothing more. And by the time they're done they've secured a $100,000 to $250,000, ideally up to $1 million, from outside investors.
Jake says about 60% to 70% of their founders reach their investment goals. But getting it is not free. Founders are required to pay an up-front fee of $15,000, plus 10% of the first $100,000 they secure from investors. And another 10% of the first $100,000 their app earns in revenue. In all, some $35,000 for a successful launch through incubation service.
Kyle says it’s worth it.
“When you're paying for anything, starting a business, nothing's free. So, whether you spend $10,000 for Launchpeer's wisdom, resources, and team building, or you’re spending $5,000 to some stranger to build your website, you're going to spend the money anyway. It's best to spend where you have multiple facets coming to help you along the way, then trying to figure it out on your own.”
Kyle points out, for an app that’s successful, the return will be well beyond the investment. ABC 10News will keep in touch with Kyle to see how his venture works out.