There are a lot of people out there with brilliant ideas, but just not enough money to get started. Developing apps can be expensive, and as important as believing in your app’s potential, so is getting it funded. It lowers the risks significantly, and lets you access the much needed resources. Sometimes hours are put into the development and promotion of an app, with virtually no return on investment. Thus, obtaining funds is important, and reduces the risk of any loss of time or money. Some of the best methods of getting funds are:
A great way to gather funds is to post your pitch out to the masses and ask for investments, however small. What do the investors get? A share in the company or maybe a free copy of the app when it is releases – whatever works for you and draws in investors. However it is important to remember that your idea is being released to a large number of people, without any way for you to ensure non-disclosure. Thus, depending on how sensitive the idea is, you may want to opt for more private methods of funding. Websites like Kickstarter and Indiegogo are becoming increasingly popular, where people interested in your app back you up and donate a small amount in exchange for a specified reward.
Venture Capitalists and Angel Investors
This is a great way of obtaining a good amount of funding, but requires an elaborate business plan. You may receive multiple rejections initially, but persistence will pay off, providing you with a decent amount of money to launch your business. A clear view of the business model, how it will make money and dedication to the idea will definitely attract venture capitalists to your app. It will also give you an incentive to shape your idea well, bring experience, and helpful feedback.
Development of a mobile app would take up a considerable amount of your start up cost; so if you had a development company on board for your project as a partner in exchange of some equity, then you would not only be able to split the cost, but also gain so much more exposure for your app.
For financial aid, bank loans are generally the first option that comes to mind. They are the safest and secure ways for funding. However, they require a lot of documentation in order for them to sanction the loan, which a lot of developers may not have.
A variety of sources provide grants, including the government, Business Links, the EU, local authorities and even others in the field that your app targets. Eligibility requirements and tough competition may be a problem however.
The idea behind funding an app is not to directly get every penny you need to develop and promote your app, but just to get a little financial help to fund part of it and get you started.