Questions

How does one go about finding funding for a mobile app?

We've recently finished the design of a mobile app for our startup. We would like to strengthen its capacity and reach but we need funding.

5answers

Step 1: Innovate
Step 2: Kickstart, Self-fund, VC
Step 3: Repeat


Answered 7 years ago

Great question. I have spent 15 years in the seed stage startups and now is a great time to be building and funding a mobile startup. We (my seed VC fund) invest in a lot of mobile startups that are pre revenue. Typically in the range of $50,000 for 5%.

That being said, having an MVP isn't enough. First try to bootstrap your way to early users. Customers are better than investors for a variety of reasons, including: no dilution and access to user feedback. Then try kickstarter, especially if this is a b2c app. Nothing proves you have a hot product like early users, especially those early users willing to put their money in first.

Next I might turn to an accelerator like Techstars or DreamIT. This programs offer you way more than just cash. These programs offer: mentorship, education and buzz. All very helpful assets in the early days.

Hope that helps, drop me a line if you wish to know more.


Answered 7 years ago

Funding for mobile App stages are as follows:

1. Bootstrapping: Bootstrapping means funding your idea with your own money. This is also one of the safest options since you will not owe anyone anything in case your app idea does not work out. In case your own money is not enough, you can turn to your personal network of family and friends.

2. Personal network: This is not to say that you do not need a solid plan and a proper sales pitch to persuade them to lend you money, of course. But persuading people who know you tends to be easier than selling your idea to a stranger. Often, funding your app idea through a personal network is possible with smaller and cheaper projects. With an MVP, your chances of getting funded by bigger investors rise significantly.

3. App funding contests: If you’re feeling brave and confident in the revolutionary nature of your idea, you can get funding for your app through one of multiple app funding competitions held by industry leaders, angel investors, and other companies every year. On the other hand, taking part in a competition can be a valuable experience and a way to attract attention to your idea even if you do not win.

4. Angel investors: Angel investors do not give you money and expect nothing in return. However, being backed by angel investors is way less risky than dealing with most, if not all, other types of loans. It is true that you will not need to give back the money angel investors lend you in case your idea flops. This is what attracts most start-ups to seek angel investors. However, if your idea does survive and thrive, your “angel” will have a share in your business. Typically, you can expect angels to ask for anything from 10% to 25% of your shares, depending on the sum of money they give you. There are also angel investment pools where several investors combine their funds and invest jointly. Since mobile app angel investors undertake great risks in funding start-ups, it can be challenging to pitch your idea to them. But if you manage that and you are fine with offering equity to a third party, angel funding for an app can propel your business nicely.

5. Crowdfunding: Crowdfunding platforms can attract all kinds of investors. When you pitch your app idea on a site like GoFundMe, IndieGoGo, or Kickstarter, anyone can offer funds for your project. But crowdfunding offers more than just money. Crowdfunding platforms are also placing to promote your app to an audience larger than a few investors. Crowdfunding is very public, making it a perfect way not only to raise money but to spread the word about your project.

6. Bank loans: The last funding option on our list, bank loans are the least favoured by start-ups. That is why for a start-up, a bank loan is a bad option. In most cases, tech start-ups requiring funding for app development go through several options among those listed above, one by one.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered 8 months ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2021 Startups.com LLC. All rights reserved.