How to Raise Money for Mobile App Startup in 2019?
From booking a cab, messaging, shopping or to order your favorite food, mobile applications have transformed our daily lives lately. Tremendous growth has been seen in the mobile app development industry since the past recent years. According to Statist a report, mobile app startups are going to generate approximately a total revenue of $189 Billion US dollars in coming up years. Henceforth, an awe-inspiring app idea in your mind at some random time during the day might be the next gigantic app startup of the year.
However, an awesome idea, for a marvelous app is not the only requirement for building an incredible mobile app startup. There are so many challenging factors which will hold you up from building an app startup like mobile app development cost, marketing strategies, operations management etc. Lack of funds is also one of those challenges due to which, even some exceptional ideas do not turn into reality.
Hence, by the end of this article, you will get to know about some fantastic measures to raise money for your app startup. Nevertheless, before raising the startup fund, let us take you through the things which need to be accomplished from your side.
Steps to Follow before Getting your App Startup Funded
- Crystallize the App Idea
Before approaching any investors you should leave no stone unturned relating to your application be it features, functionality, and existing competition etc. Have a clear idea in your mind about what problem is it going to solve? Build a minimum viable product before presenting it to investors. And later on, make the improvement as per the feedback of end users.
- Analyze the Target Market
It may seem so cliché to explore the target market but this particular factor will not only help you in raising the fund but will assist you while developing the app also. Every investor across the globe would like to test your vision and strategy of ruling the market through your product, before giving a single penny.
- Research about Potential Investors
There are tons of platform available on the internet to find relevant investors for your app startup. However, for a mobile game development company, it is no use to contact an investor who only funds social startups. Therefore, you can filter the investors by what markets they are specialized in and prepare a directory of potential ones before approaching.
- Put Finishing Touch to Elevator Pitch
Venture capitalists and investors are busy people and they don’t have so much time to listen to everything about your app startup. Therefore, plan your startup pitch in such a way that when you are left with a probable investor in an elevator, you can persuade him by narrating all the goodness of your startup through a short pitch.
Now that you have completed all the homework from your side before getting the money. Thereupon, it’s time to actually approach an investor to get your app startup funded. So, let’s have a look at different alternatives available for raising the capital.
Various Possible Options for Getting Funded
- Accelerators and Incubators
It is probably the best idea to get guidance, right from the baby stage of your app startup. These incubators and accelerators are the people who will take care of your app startup from its early days in a safe environment until it is old enough to stand up at its own feet in the market.
- Angel Investors
These types of investors accumulated their wealth somewhere else and they are ready to invest the fortune in your app startup if they are convinced. This is a special class of investors as they do not demand for much control in exchange for the money, which is why they are called Angel investors. As they collected their wealth elsewhere, hence along with the money they would also be able to guide you as per their previous investing experience.
- Venture Capitalist
These are professional investors. They would ask for much control in your startup in exchange for their investment. However, as they are experienced professionals they will also provide mentorship to your startup. Consequently, each iPad app development company immediately jumps to VCs from the seed funding stages onwards.
- Crowd Funding
If you are worried about getting ousted by the hefty stakeholders from your own startup just like Apple Co-Founder Steve Jobs. Then perhaps, crowdfunding is the best alternative for you to keep the ball in your fist. As the name suggests, crowdfunding your startup means drawing capital from a pool of investors in exchange for small chunks of your startup equity.
On a final note, there are tons of way of raising fund for your app startup. Not only using the above-mentioned methods but the companies of iPhone app development in UK have been raising capitals from bootstrapping, bank loans, and ICO etc. But before starting to pitch an investor, the important thing to know is what kind of investor is pertinent to your startup idea.