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8 Tips to Get Funds for Your New App in 2017 and Beyond

Startup entrepreneurship

Building a mobile app involves a complex process with several stages and procedural steps in the path of development, app testing and finally app deployment. This tedious process is equally daunting in respect of investment requirement and can prove to be expensive for app developers. It is more so, for the developers and publishers of startups or less known companies.

Whoever has launched an app earlier, know the complexity involved in development and promotion of an app, while it is very unlikely to earn revenue in the initial stage. So, convincing someone to invest fund for the app development requires a well planned preparation and meticulous consideration of the pros and cons from the investor’s perspective.

1# Do not expect funding on the basis of App idea

Many app developers have a misconception that investors may consider investing by only finding their app idea interesting. Their misconception lies in the fact that any ideas however great it is do not just have any significance unless they show effectiveness in practical aspects like customer orders or downloads.

A really great app idea is the key element as long as great development and design backs the app idea to come with a great product. All great app ideas used by billion of people are equally unique idea at core and great execution in development. So, the investors are likely to take interest in both, particularly how it adds value to the user. This is why most apps funded these days at least make a presentation with initial development attributes of the app in place.

2# Crowdfunding your app

Crowdfunding websites like Kickstarter and Indiegogo became hugely popular these days and you can address donators and investors through these platforms. When beginning a fundraising campaign in these sites have your end objective and the financial target clear. Bringing together multitude of micro donations into a solid fund is the driving idea behind such crowd funding initiatives. Let us offer below some tips concerning fundraising for your app.

  1. Make a video presentation: Kickstarter advocates this itself to the users. Video is a robust and powerful tool garnering more user engagement with your campaign than any other means. Try to keep the video short and interesting.
  2. Monitoring the dashboard regularly: Dashboard right inside the Kickstarter project page allows accessing valuable information on your campaign. This information can help getting insights and accordingly you can bring change in your campaign.
  3. Refrain from posting very high budget: After posting a budget you cannot change it and in any case if it is too high you are on the receiving end. Lower budgets help reaching the target faster.
  4. Keywords and SEO: Kickstarter having a search engine allows reaping the benefits of optimized keywords and SEO to remain more discoverable to the users.
  5. Pushing through social groups: By making use of social platforms like Facebook and Google you can garner backing from various groups.

3#Tie Up with Angel Investors

Angel investors refer to individuals making investment in companies seeing the potential of an app idea or concept. They have to be provided a convincing idea of your app. Better than an idea if you can showcase an app prototype you can garner more specific reactions and in any case can have a better chance.

Angel investors are mostly affluent business personalities or business establishments who are looking for promising start-up projects to invest. Obviously, while offering fund in exchange they would take ownership equity or charge convertible future debt from the app developers. Besides raising funds negotiating on terms and conditions is also crucial

to make such funding initiative successful. Undoubtedly, before you find the right angel investor or investors company you may find an series of rejections.

4# Targeting app contests

App contests offer good opportunities to raise fund for a new app. In many such contests top app ideas win good fund for developing their app. These platforms also help in coming into notice of big investors and businessmen. Besides these start-up contests there also contests on social platforms. Pitching a convincing presentation of your app and proving the real value of your app in changing lives is crucial to win such contests or get noticed by a potential investor.

5# Through business partnership and revenue sharing

A great way to get your app funded is to strike a revenue sharing deal or find a business partner willing to offer fund for app project. Before agreeing on the fund raising deal always have a clear terms and conditions in place.

6# A Fundraising CRM

Just as a good soup comes with a careful mix of vegetables, protein and delicious broth to make a savory bowl of hot soup, you need to turn all the possibilities to reach your objective while fund raising for your app. There are some great CRM services that can help you with pool of potential investor data from various sources.

7# Fundraising through an event

Organizing a marathon or an athlete meet can be good way to create buzz and interest around your upcoming app. Obviously, such options are only applicable if the developing company has a good budget support beforehand for organizing such events.

8# Taking testing phase unto yourself to cut cost

Finally, it is all about cutting cost on your app development process which can play a crucial role. Testing phase is one of the most time consuming and expensive process in the development cycle. By coming yourself as user along with your friends and family is a good way to save cost in this regard.

Give your family members beta copies of the new app and let them use and abuse it in every possible way until they can crash the app. Take their honest feedback and incorporate things to address the glitches. Obviously, picking the right demographic mix of people for your app is the right way to do it.

Finally, fund raising depends on your consistent effort across diverse avenues. You should not leave any page unturned when making a fundraising initiative for your app.

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  1. Avatar

    App contests offer good opportunities to raise fund for a new app.it is best method to collect large amount.

  2. Avatar

    Thank you for sharing that amazing information. Business Partnership is one of the finest ways to fund applications.

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