13 Dec How to Raise Money for an App
With smartphones being so widely and frequently used, hundreds of apps are developed each day. Some of them have a great starting budget, but there are some that need a little push in order for the idea to be pitched and funded properly.
You might think that you simply need to find the investor and kick off your app. Unfortunately, it’s not as easy as that. The competition on the market is bigger than the funds, and that is why you need to resort to some alternatives. Luckily, possibilities are vast and there are people willing to help you in many different ways. All you have to have is a great working concept, a mesmerizing pitch and plenty of researching skills and patience. In this article, we will help you find out how to raise money for an app and get your business started.
This basically means starting a business on your own by using your own money. You can either invest your own savings or even keep your job and fuel your startup with your salary. This way of raising money for an app is very beneficial since you can take your time and build a prototype and validate the idea. Once this part is done, you can easily get funding for apps from investment firms. Another positive side of this way of funding is that you might even save enough to fund your app on your own and as a result have full control over your business.
Angel or seed funding
If you don’t have enough saved up and you’re still wondering how to get funding for an app, you can always look for venture capitalists or angel investors. This is probably one of the best ways to do it, since angel investors are experienced wealthy people who want to have less control in the exchange of money and would like to help you in any way possible. However, when it comes to VCs, they will want to have more control over the firm, but will provide you with much-needed mentorship in return.
When asking your friends how to raise money for an app, they will probably mention something like this. Crowdfunding is very popular now and it means getting funds from a large pool of investors, with each of them offering small contributions. Typically, this is done via social media networks or the internet, and Kickstarter is certainly one of the most popular platforms for such funding. On Kickstarter, you can easily market your idea, promote it to the right Kickstarter audience and get funding for your apps on a larger scale. The fund raised can be done in a form of a donation in exchange for a reward or in exchange for a share in your business.
If you’re looking for a more fun way of raising money for your app, you should look for app contests. There are many such contests held all over the world and they are giving the chance to young businessmen to pitch their ideas in front of a larger audience of investors. Usually, such contests are judged by venture capitalists and business experts, so it pretty much feels like being in Silicon Valley. However, keep in mind that such events are extremely competitive and you will have about 10 to 15 minutes to make your pitch, so you have to make it good. But essentially, this way of raising money after winning will look like seed funding.
These are the four most popular ways of how to get funding for an app or any other similar business idea. Additionally, there is always the possibility of getting a loan from the bank and other financial institutions or relying on your friends’ and family’s willingness to help you become successful and make your dreams come true.
To learn more about Kickstarter marketing, take a look around our website.