Did you know that there are about 3 million Android apps on Google Play while the iOS App Store has about 2.2 million?
If you plan to compete, you need to stand out with a fresh idea to bring to life. Translating the idea into a functional and profitable app will need financial resources. You’ll also need to pay skilled developers to put it together.
Don’t know where to get your app funding? Don’t fret, we’ve got a simple guide here for you to try out. Here are eight great ways to raise funds for your app:
You Can Start with Friends and Family
In the early stages, especially during the pre-seed stage, this is the best way to get your startup funding. When you look at it, 38% of startup founders raised their funds from their friends and family.
Your personal network is a good starting point not only in getting funding but also to gain supporters for your app or startup idea. They are much more patient and forgiving when you run your startup idea with them.
Another advantage is that they won’t exercise too much control over your business. Friends and family often won’t choke your app idea the way investors would. You get more freedom and direction for your app.
Crowdfunding is a popular avenue you can try out to secure app funding. This is the practice of raising funds from a large pool of investors. Each of them would offer a small contribution, which adds up to big funding.
You achieve this through the use of crowdfunding sites like GoFundMe or Kickstarter. It stands as a platform for many startup projects, ranging from video games to mobile apps.
Using Patreon for Continuous Funding
At first glance, one would associate or compare to Kickstarter. However, Patreon provides a different method compared to the usual trappings of crowdfunding.
In this case, you gain funding on a constant basis. That said, patrons hold on to the promise of new content or progress updates on your projects.
Patreon is the go-to means of support and monetization for long-term development. It’s an ideal platform for artists, video content creators, and even musicians and gamers. As a means to gain app funding, it may be demanding due to the requirement of having to keep creating on a regular basis.
When you put it into perspective, having a Patreon could be a reasonable approach as proven by these business models. With it, you enact a constant stream of income while you provide app updates and fixes during the app’s development.
You will need mobile app investors to provide you with funding and resources. They are instrumental in bringing your ideas to life.
Your personal network like your friends and family would qualify. But, you will need more sponsors to get a larger pool of finances if you aim to make a more ambitious and more robust business app.
There are different types of sponsors and investors you may encounter in this, including venture capitalists.
Venture capitalists are best described as professional investors. While you have a compelling vision and mission, their main concern is gaining profit from your success. These are the people who will give the largest sum of cash to fund your project in hopes of gaining big in the long run.
Angel or Seed Funding
You can also seek angel investors. Compared to venture capitalists, these are investors that enter during the early stages.
Angel investors also provide more than financial assistance. They can also provide guidance and advice in specific areas in your startup. The advantage here is that big-name angel investors have this appeal that can also attract other investors, including venture capitalists, later on.
As long as you have a prototype that you can present, this can work out fine. The prototype is a proof of concept to show how your app works and how it can generate income. This is the most important tool to attract angel investors.
This method banks on your capability to make use of your own resources to fund your startup app. In definition, bootstrapping means you raise funds through your existing job, savings, investments, or alternative business.
In doing this, you set aside what you have from your resources towards the project. If your starting date is at least six months away, consider contributing to a fund each month.
If you prefer, you can choose to outsource your app development during the beginning. This way, you can work out a payment schedule laid out all throughout the development lifecycle. The result will allow you to start right away with little investment.
Getting Small Business Loans
Since working on a startup, especially translating an app idea into a functioning product, counts as a business, you could also secure app funding through the use of a loan. You can try applying for small loans to start with.
However, when applying for a loan, you need to present a solid business plan. This also includes market research, revenue projections, and a prototype or proof of concept. Expect a lot of queries about your business, product, and its market.
Speaking of starting a small business, come prepared with these tools as well.
App Funding Contests
If you are still wondering about how to get funding for an app, this is one competitive method that you should try. Note that there are countless others that would join these contests to secure funding to push their app further into development.
Business incubators and angel funds run these contests in search of the next big thing. You will also encounter competitors who are looking for funding for their startup projects as well. If you plan to stand out, you might want to work on your pitch presentation.
Bring Your App Ideas to Life Now!
Whichever app idea you have brewing that you wish to bring to life, it boils down to having the resources to make them a reality. Make use of what you can reach with these app funding methods. This might be the career-defining moment that you are looking for.
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