App Funding: Best ways to raise your capital

This Image describes the App-funding for the best ways to raise your capital.
February 19, 2020

Different ways to fund your app idea

Once you have got a great idea to build an app then the next thing to worry about is getting funds for the app. This is quite important as you need to spend money on resources like software tools to be used in the development as well as on the developers you need to hire. ‘How to get funding for an app is always the first thing that comes to the mind of aspiring app startup owners.

Some of the ways in which we can manage to get funds are as explained below:

Go ahead with a crowdfunding campaign

The best way to get some money for your business idea when you are out of resources is crowdfunding. This gives your idea the wings to fly. App ideas keep on getting on the sites for crowdfunding and generally, hundreds go unnoticed. So your best chance to get your app noticed and funded is to come up with the right pitch. Here all you have to pay is the service fee for the platform of crowdfunding and the transaction fee that is needed by the payment processor. Once done that you can be assured about getting the needed funds for your business to grow.


Bootstrap is considered the best way to build an app business and have complete control over it. Here you will have complete ownership of the app as you will be developing through your savings. Here, the business will be yours and the idea will be yours too. It is easy to start working on your idea and you can choose your own pace to continue. Several successful businesses in the market today are self-funded and have managed to stay that way. In case you are going ahead with bootstrapping you need to also plan out the marketing strategy along with mobile app development. Now this means you need to have a budget planned for the same too.

Take part in funding contests

If your idea is unique and has a proven sales point, then you can take part in app funding competitions confidently. Such competitions are held every year by companies, angel investors, and industry leaders. Some of the companies involved in such competitions offer funds to the app startups while others even offer mentorship. In case you feel you are right for such competition and brave enough to face people, you should do your preparation well. Getting funds for your app project is not easy as there may be hundreds competing for the same dollars!

Moreover, taking part in such a competition builds confidence in you and offers you valuable experience. Even if you fail to win it, you will still get the attention of your app. Then there are some others, who manage to win some good offers even if they fail to win the competition.

Raise donations

It is not possible to easily find funding for your app idea. Again, with the fierce competition, attracting someone and getting money becomes hard too. So the easy way to get money for your app business is to raise the fund. You can do this by coming up with an app proposal first. Then you can ask them for donations to build your app. Once your app rolls out you can start repaying them in the form of app pre-orders, a genuine gift, or even compensation in the form of money.

Go for strategic partners and angel investors

Strategic partners or angel investors are said to be a reliable option for seed funding when you are trying to kick start a new app. App angel investors are not always organizations or companies. Successful business owners as well as individuals even take interest in new app ideas and come forward to fund them. Depending on the kind of the app and the stage of development it is in, angel investors can make an offer which can be anything in thousands to something in a few million.

Even though it is easier to get the attention of angel investors, still you need to be ready with important details like:
The budget you will require for the app.

  1. The go-to-market strategy
  2. Promotional strategy
  3. By what time you will burn out
  4. Why do you deserve to get the capital?

Personal or business loan

Just like the way you can apply for a loan to buy a home or a car, you can also apply for a loan to start your app business. You will have to go through the general procedure of paperwork to get the process done. You will need to demonstrate your app idea and explain how your app business will make revenue in the coming time. While you submit your loan application you will have to produce a proper proposal too.

Friends and family

One of the most reliable sources of funding that you could ask for is from family and friends. When we are all set to get into a new venture and take some risks in the professional line, it is the people in our lives who believe in us and support us. When said that, you should not skip the part of coming up with an effective sales pitch and a proper plan for your idea as it is needed to persuade them to invest in your app. However, it can be quite easy to convince the people whom you know compared to total strangers, when it comes to selling an idea.

If you have a cheaper project in hand which needs less app startup cost, your network can be the best option to get funds.

Private investors

Private investors can be considered as a good option to get mobile app funding. They are nothing but the local businesses that work in the same line as your app ideas. In that case, you can approach them to fund the development of your app and in return, get an edge over their competitors in the market. You need to very well understand that this can only work when the app completely compliments the said industry niche. And, you can find businesses that have not developed an app useful to them but are interested in having one.

Venture capital investors

Many of the aspiring entrepreneurs get into startup business through venture capital. Some of the successful names you can find in this area are Facebook, Airbnb, LinkedIn, etc. It takes time to fly your business through venture capital and you need to come up with a strong pitch to get started. You need to be ready to customize your idea as per the suggestions of the venture capital investor based on what they think can take your app to success quickly. No doubt it can help you get started fast and have fast ROI on your app but, everyone cannot get funded through VC.

Final thoughts

Startup businesses mushroom easily around us and a good number of promising and exciting projects are forgotten after some time just because it fails to get the needed funds. Finding investors and convincing them to give you money can be competitive and hard. However, you have a better chance of survival if you manage to go ahead prepared.

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