5 Things Investors Look for when Choosing Software Development Agencies

Software is an asset that you invest in with the hope of making a significant return. Software development often involves multiple stakeholders and even future stakeholders who want to see competence and a demonstration of proven return on investment. So what are some qualities of a software development agency that would help procure investors?

1. Meticulousness in Keeping Accurate Data

From an investor’s point of view, every second counts when it comes to tracking time. You want to find an agency that manages your investment well by providing data-driven estimations (on the basis of past work) and moment by moment time tracking. These two practices can give investors the confidence in the quotes that are produced and transparency for non-quoted work.

2. Efficient Estimations that Aid Prioritisation

Relative estimation is an efficient way of indicating the size of one feature in terms of another feature (e.g. "this one is twice as big as that one"). This allows you as the product owner to make decisions about which features are low hanging fruit, what features need to be split into smaller features, and which ones need more detailed quotes. It’s a good idea to find an agency that provides these relative estimations for features as they come into the backlog.

3. Predictability with Quotes

For large blocks of work or where an in-depth understanding of cost is needed, quotes are the way to go. For many customers this is an ideal way to start off, particularly if you are unfamiliar about the general cost of developing software.

4. Reporting and Cost Control

It’s a good idea to look for agencies that provide tools and reports on spend per feature (even better if those are live web reports connected to their time entry software). This allows you and your stakeholders to understand return on investment on a feature level and enables you to better plan future investments. Nobody likes surprise invoices. And you want to make sure you have high visibility over the costs involved in your project.

5. Due Diligence

As your application starts gaining some wins and becomes a desirable investment - potential investors want to perform due diligence and measure the integrity of the project. Look for an agency that practices good documentation and also has insights and understanding in performing due diligence audits for investors.

At Olive Link, we aim to do our development in such a way as to support our clients in stakeholder interactions and also in procuring investors.

For more information about our app development services, click here. Alternatively, contact us with any questions or queries that you may have about software development.