Do you have a brilliant idea for an app? Is it a completely new and revolutionary idea? Is it an upgrade or reimagining of an existing app? No matter which, if it will add value to your target audience’s lives, then it’s a winner. If you can get it off the ground. Mobile app development can be costly, but it may be just the investment you need to take your business to the next level.
7 Ways to Get Funding for a Mobile App Idea
1. Mom, Grandpa, Your Old College Roomie.
That’s right: look to your family, friends, connections, and colleagues who are in a position to help. You already know and trust them – and presumably, they know and trust you! Explain your concept and how it will deliver value to users. Take this opportunity to ask for – and listen to – their feedback.
Now remember, these may be your buddies, but always present a polished, professional pitch. They are also your potential investors. Be prepared with stats, figures, facts, and projections. You cannot ask them for blind faith, any more than you would a lender. If your idea is solid, you’ll have the proof.
2. Loans and Other Debt Instruments.
Sometimes, the route to mobile app development involves strategic debt in the form of loans, lines of credit, or (not our first preference, or our second…) credit cards. If you go with a credit card, find one with no initial interest for a period of six to 18 months. For a startup with no track record, this may be a more likely avenue than a short-term business loan.
It is best to use debt with a specific plan or outcome in mind. For example, you could fund a prototype, mockups, or a product planning session. This is a good move as it allows you to have some solid assets behind you as you pursue other ways to get funding for your mobile app.
3. Angel Investors.
This is another common method. Angel investors have funds for promising startups or ideas. In addition to funding, some investors also provide guidance, hands-on help in terms of managing operations, and/or access to their own network for further advice and support. Competition for angel investors is fierce, so make sure your idea (and evidence) is solid. They’ll need to see any assets you have, such as a prototype, mockups, and a business plan.
Note: Angel investors work with ideas in the very beginning stages of life. If you have a product that is already in development, you can tap into venture capital investors. They are similar to angel investors, but they need more from you in terms of a solid product and plan.
4. Contests and Incubators.
Seek out contests: essentially, best app wins. To find the most promising of the promising, angel investors often run contests. The prize is funding for your mobile app development. Again, expect some tough competition; back up your great ideas with plans, proof, and a professional pitch.
As in pulling yourself up by the bootstrap. Think lean, think mean. You build the bare minimum to go to market, while saving, scrimping, and sacrificing either yourself or as part of a small team. This is where we get those inspiring rags to riches stories; you could be one of them with hard work and your eye on the prize. Bootstrapping takes longer, typically, but you do not have to worry as much about ruining relationships, meeting investor demands, etc. Plus, if (and when) you’re successful, you are that much more attractive to investors and lenders.
If you were expecting to see Kickstarter or GoFundMe on this list… we won’t disappoint. Crowdfunding platforms allow you to reach a diverse range of investors and leverage different options, including:
- Donation-based: investors make a donation in return for an “extra” when your app launches, such as free access to premium features.
- Debt-based: investors lend you money in the expectation they’ll get it back.
- Equity-based. Here, investors provide funding in exchange for a share in your business.
Crowdfunding also allows you to promote your app to a wider audience, get people involved, and generate buzz.
7. Save Money with Mobile App Development.
This isn’t a “funding” method per se, but when you can significantly cut costs associated with development, you can reduce the amount of funds you need to raise or use them for other initiatives involved in getting your idea/business off the ground.
MVP.dev provides professional development capabilities and delivers fully functional apps at 90% of the cost of traditional development. Users will not be able to tell a difference in terms of usability or appearance; your business, however, will notice a big difference in the bottom line.
Start today; MVP.dev has over 30 trained developers and web designers ready to bring your idea to life.