Who isn’t familiar with mobile apps? If anything, they’ve become ubiquitous in modern society.
After all, you can use them to do pretty much anything. For example, you can use them to order food or find your location on a map.
Do you have an idea for an app? That’s great—now all you need to do is come up with a way to fund it! Mobile apps aren’t easy to make. Given that, it’s not surprising to know that some can cost thousands of dollars.
Need some ideas? If so, you’re on the right page. We’ll be going over a few ways that you can raise capital to fund your mobile app startup below.
1. Consider Crowdfunding
Crowdfunding is a great way to raise money for startups. It allows you to connect directly with interested individuals.
For it to succeed, you’ll need to offer your backers with an incentive. For example, you can offer an equity stake in the company in exchange for financing.
2. Enter an App Contest
If you think you have a truly winning app on your hands, consider entering an app idea contest. There are many of them out there—some are backed by companies whereas others are backed by individual investors.
Prize-wise, it depends on the contest but chances are, it’ll be a hefty amount. Even if you don’t win, you’ll gain exposure.
3. Find an Angel Investor
Angel investors are wealthy individuals who like to provide funding for startups in exchange for equity in the company. In other words, they can provide you with the capital that you need—as long as you give them profit.
Where can you find an angel investor? There are various sites that you can use such as Sydney Angels.
4. Get a Bank Loan
Bank loans are another option. As long as you can prove your idea, they’ll be happy to offer you funding. Here’s a tip—be ready to answer any questions that they might have about your proposal.
Keep in mind that there’s also a lot of paperwork involved, including a lengthy application form you’ll have to fill out.
5. Ask Friends and Family
Got turned down by the bank? Consider asking your friends and family for help. Let them know exactly what your idea is and how you plan on making money.
One benefit to this is that they’re generally more flexible when it comes to interest rates.
Keep in mind, however, there’s always a chance that it can damage your relationship if the endeavour fails.
Raising Money for Your App Startup
And there we have it—five ways that you can raise capital for your app startup. As you can see, various methods are worth trying, so don’t give up if the first one doesn’t work out. If anything, the most important part is to create an effective pitch!