You have an outstanding mobile app idea. Your app idea could be the next big shot in the app market, but due to lack of fund, it was lacking back and couldn’t hit the funding, right?
If you are rushing to get the big guys to fund you, ease a little. You are not the only who looking for funds, lack of funds can be one of the biggest causes why some big app ideas never turn into reality. And this may make the whole process a little more complicated. Though your app idea is great, you still need to convince an investor to fund your app – this is something you need to take care on your part.
In general, there is a misconception in the entrepreneurs that investors will automatically invest in a great app idea. The competition in the market is rising every single day, and there is a need to prove the capability of your app idea to anyone who would be funding your app development.
In this blog, we will help you how to raise funds for your app development for startups.
Top 11 ways to raise funds for your mobile app
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Find a silent business partner:
Someone will have believes in you and your app idea, even if this person works in a completely distinct industry, they are ready to invest in your app development, for a share of the profit. This silent partner has limited involvement in the partnership. They never involve in daily operations; they invest the money and take their share. If you are in search of such business partners, platforms like BusinessPartners, BEAM, Founder2Be are some of the high starting points.
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Bank Loans:
Loans from banks and finance companies will help you raise funds by putting your existing assets as a guarantee. Consider government plans offering financial aid, such as subsidized interest rates and tax benefits, as a last resort for fundraising.
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Crowdfunding:
Crowdfunding your app, which means raising funds from a large pool of investors where each one offers a small amount of contribution all this is done via the internet and social media networks. One best example of such a crowdfunding platform is Kickstarter that enables business people to advertise their idea and ask funds on a large scale. The funds can be a donation, or in exchange for rewards or a share in the business.
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Bootstrap your app:
Bootstrap is a good option if you have regular income or salary to launch your startup without funding. Self-funding your business initially provides significant benefits, offering full control over your venture’s direction and decisions. Even you can have strict cash flow practices in the earlier stages of the development. Launch your MVP app, acquire customers, and scale by reinvesting profits into future app development. Once if you gather traction, you can quickly get more investments. Here are a few tips to prepare your app for bootstrap.
- Reduce personal expenses and start saving months in advance
- Do whatever you can do in the initial stage, even if it is learning a new skill
- Use the resources that you have like the computer, home, or office, etc.
- Be economical wherever possible and search for deals.
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App contests:
Annually, numerous companies, institutions, angel investors, and organizations host app contests, funding top ideas for development. If you win at these contest, you can gain quick traction for your app. Even if you don’ win, you can gain exposure and access to people that could boost your credibility. Some of the app contests such as NYC BigApps, CodeLaunch Pitch Day and UChicago App Challenge. Present your app at a local Startup Weekend, where developers, managers, enthusiasts, mentors, and experts exchange ideas.
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Angel funding:
Angel investors and venture capitalists are the best way to skyrocket your startup. Angel investors offer funds with less control, granting more freedom, while venture capitalists provide funding with greater control and mentorship. Both these can be the best way to get secure funds.
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Apply for small business Grant:
Have a plan to develop an app with some social values, then you can look for government funding. As there are lots of small business grants available if your app is geared towards social impact. This is free money, as it doesn’t require to be rapid. However, you need to prove that your app can truly make inroads for a social cause.
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Partner with a business:
Partnering with businesses is a great way to fund your startup There are lots of businesses in your sector who have extensive customer base but lack the resources try a new way of doing things. Partnering with businesses will help to promote your app to their existing customers.
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ICO:
ICO funding will provide funds for Blockchain-based startups. For this, you need to create a prototype after raising initial funds. Prepare a white paper and create a landing page to establish credibility, facilitating fundraising for your business. This is a risky process since such funds have an uncertain future.
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Business grants and awards:
The UK offers several grants and awards to fund startup ideas, these awards will be considered if you meet the criteria that they are looking for. If it satisfies their desire, then it will be an excellent place to start. Innovate the UK always has plenty of grants and awards open for applications, so it’s worth looking if any current grants fit your startup’s profile.
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Seed Investors:
This is a government scheme that encourages the startup in the early stage by investing. Even though it is not a source of funding, it offers a big incentive to potential investors. SEIS registration allows investors to claim tax relief on half their investment and exempts them from capital gains tax.
Conclusion
For app startup entrepreneurs, the mobile app idea is precious, not to be compromised at any stage. Getting money for the same is a significant process and requires a lot of patience.
Are you in search of
mobile app developers
? Then Krify will be an ideal choice. With over 15 years of experience in mobile app development all around the world. We have developed deep expertise in this domain. Get in touch with us today for a consultation.
