Offer them a chance to become a publicly displayed patron of the app.<\/li>\n<\/ol>\n\n\n\nRaising private donations from your own platform is highly recommended for mobile app startups as it has no risks or losses.<\/p>\n\n\n\n
Venture Capital Funding<\/h3>\n\n\n\n Choosing venture capital startup funding for mobile apps is the best option if you need a large amount of money. A good business plan with a prototype\/MVP will quickly capture the interest of VC firms. These firms usually invest in startups with irrefutable potential for growth and revenue.<\/p>\n\n\n\n
You can only display such an image with a unique business plan and MVP. It will represent your professionalism and dedication to your own project. Securing flexible capital will be easy once you convince VC firms to invest in your app startup.<\/p>\n\n\n\n
But you should know that venture capital firms will take as much as they give. They will most likely ask for some or more equity stakes. You will also have to share control of your company with VC firms if you choose them.<\/p>\n\n\n\n
It will not be a problem if you handle the legal aspects carefully and with the help of reliable lawyers.<\/p>\n\n\n\n
Private Investors<\/h3>\n\n\n\n Private investors are usually small business owners and companies that do business in the same niche as your mobile app startup.<\/p>\n\n\n\n
For example, if your mobile app startup idea is about hospitality like hotel booking and tourism, you can share it with the hotel owners and travel agencies to raise funds.<\/p>\n\n\n\n
Being in the same niche makes this fundraising beneficial for both parties. You can use your app to help investors perform better than their competitors. An example would be you providing hotel customers with an easy way to book a room through your app.<\/p>\n\n\n\n
Private investors are also highly recommended for startups as it helps businesses in the same niche grow by helping one another.<\/p>\n\n\n\n
Personal Network Funding<\/h3>\n\n\n\n Securing funds from family, friends, colleagues, and relatives for app startups is one of the safest options. You can trust and rely on these people even if your app startup idea fails.<\/p>\n\n\n\n
Friends, family, and colleagues will also give you vividly honest feedback on your app idea that can benefit your startup.<\/p>\n\n\n\n
Convincing your personal network about your idea will also be a lot easier as they already believe in your potential. You will not have to worry about paying the money back late or missing the payment like bank loan payments.<\/p>\n\n\n\n
It is best to raise funds from a personal network if your app startup idea requires a small or reasonable amount of money.<\/p>\n\n\n\n
Business Partners\/Co-founders<\/h3>\n\n\n\n A co-founder or business partners are clever choices for securing startup funding for apps. You can also get one of your friends or family as co-founders that can provide the necessary money. It is a great way to raise funds and share control with someone you can trust.<\/p>\n\n\n\n
Partnering with businesses to raise funds is beneficial for your budget and business.<\/p>\n\n\n\n
An established business will bring the money and its existing customer base to your app startup.<\/p>\n\n\n\n
They will actively do this if you partner with businesses in the same niche. You get effective promotions for your app startup this way.<\/p>\n\n\n\n
But you will most likely have to share some or more equity stake\/control of your startup with the business partners in exchange.<\/p>\n\n\n\n
It will not be a problem if you find the right partner and handle the legal aspect carefully.<\/p>\n\n\n\n
Startup Pitch Competitions<\/h3>\n\n\n\n You can secure capital for your app startup by taking your idea to startup pitch competitions. These competitions are obviously competitive and not at all easy to win.<\/p>\n\n\n\n
But you have a chance if you prepare an influential pitch to highlight the growth potential of your app startup. Your app idea will need to be noticeably unique and captivating to win such a competition.<\/p>\n\n\n\n
Many of these competitions also provide business guidance to winners along with money. A mobile app startup can always benefit from such rewards.<\/p>\n\n\n\n
Another benefit of these competitions is that they put an unavoidable spotlight on your mobile app startup. It increases your chances of getting investors even if you lose.<\/p>\n\n\n\n
Angel Investors<\/h3>\n\n\n\n Angel Investors are individuals or business owners who have a large enough net worth to afford to invest in multiple startups at the same time. These investors will be ready to invest in your startup from an early stage. And they will be ready to accept the risks that come with it.<\/p>\n\n\n\n
According to an article by Angel Investment Network<\/strong>, the Small Business Administration estimated 250,000 active angel investors in the US that provide capital for about 30,000 startup companies every year<\/a>.<\/p>\n\n\n\nAngel investors are actively looking to invest money in new startups. They neither seek control of your business nor do they ask you to pay back the money if your idea fails. It provides you with more freedom in your business and app expansion.<\/p>\n\n\n\n
Some of these investors might also help you learn how to get investors for an app like a business professional.<\/p>\n\n\n\n
Angel investors will ask for an equity stake in your company in return for the money.<\/p>\n\n\n\n
The money you require will determine the shares you have to give to them. Startups give 25% to 30% shares to angel investors on average.<\/p>\n\n\n\n
And angel investors are not easy to impress due to the large number of pitches they get. You will have to perfect every minute detail in your app idea pitch to have a chance.<\/p>\n\n\n\n
It is the only way to get an angel investor to take an interest.<\/p>\n\n\n\n
<\/span>Conclusion<\/span><\/h2>\n\n\n\nMany startups in the market lose their business after a few months. And even after the startup business shows some growth.<\/p>\n\n\n\n
It is usually due to the inability to sustain the business financially.<\/p>\n\n\n\n
That is why it is necessary for your mobile app startup to secure reliable investors that will get you through the post-development stage.<\/p>\n\n\n\n
You will need to raise enough funds to sustain the startup business during and after the development. It is crucial because it takes time for an app to gain a customer base that can support its operations financially.<\/p>\n\n\n\n
You can also get insightful guidance from app startup industry experts like Ailoitte. Our team will evaluate your startup\/ideas carefully. And help choose investors that are most beneficial for your business in the long run.<\/p>\n\n\n\n
<\/span>Frequently Asked Questions<\/span><\/h2>\n\n\n\nHow do mobile apps get funding?<\/strong><\/strong> Mobile apps get funding through different methods\/investors like bootstrapping, crowdfunding, personal network funding, angel investors, venture capital, and bank loans.<\/p> <\/div>
\u00a0How do I get investors for my app idea?<\/strong><\/strong> You can get investors through crowdfunding, bootstrapping, angel investors, private donations, business partnerships, venture capital investors, bank loans, and startup pitch competitions. Here are some tips to get investors interested in your app idea: 1. Make sure your idea is unique and provides real value. 2. Analyze the market (Target audience and competition). 3. Validate the idea. 4. Create a business plan. 5. Create an impactful elevator pitch. 6. Pitch your idea to several investors.<\/p> <\/div>
Can you get a business loan to create an app?<\/strong><\/strong> Yes, you can. But it is not recommended for startups to get a business loan as you will have to pay it back with interest regardless of whether your app succeeds or fails in the market.<\/p> <\/div>
Do you need funding for an app?<\/strong><\/strong> Yes, you do. The app design and feature requirements will determine the development fund amount. You can talk to Ailoitte\u2019s experts to find out the cost estimation of your app.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"
The first thing app startups always have to do is secure funding for apps. It is because of meeting market …Read More <\/span><\/p>\n","protected":false},"author":27,"featured_media":1970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[157,22],"tags":[],"acf":[],"yoast_head":"\nHow to Raise Money for a Mobile App Startup?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n