Mobile App Funding often the make or break for a startup app idea. Many startups fail due to a lack of idea clarity and materialization, even if they have a great business idea.
If you already have an mobile app idea in your mind, you are very likely to be eager to get started with it. Aye, you must get it rolling as time to market is very important once you have validated your business concept. A recent report by Technavio found that the mobile app market is expected to grow by $497.09 billion with a CAGR of 21% during the post Covid world 2020-2024. The report suggests that there is a positive impact of Covid-19 on the mobile app market.
Infographics Source: Businesswire
To transform your app idea from paper to an actual mobile app, the best option is likely to be to hire a mobile app development company, unless your best friend is an amazing coder. Be it in-house development or outsourcing, mobile app development is a proposition that requires significant investment. While depending on the app specifics and the feature sets, the cost of mobile app development varies. Generally, the mobile app development cost ranges between $15,000 to $80,000. It can go beyond the higher value depending on the app complexity and features.
Not just the app development cost, there will be many other overheads such as user acquisition and marketing, hiring, and other operational expenses. All of it means that if you do not have a significant amount of funds to self-finance your project, you will instead need to raise capital to build and operate your mobile app. So, how do you go about getting mobile app funding? What are the steps to seek funding for an app?
A general answer to these questions is that you gain mobile app funding the same as you would get funds for any other business or startup. You can raise capital from your business contacts or investors. People need to believe that your app idea can generate ROI (return on investment) and is worth investing in. Some mobile apps raise millions of dollars of capital even before pre-development, whilst others struggle to get investment even once the application is live. However, apps getting million-dollar capital investments usually pitch with a clickable prototype of the app. These prototypes clarify the app idea to the investors by illustrating the app functionalities. Click here to know how to build interactive mobile design prototypes. How to Find Initial Funding For Your App Startup?
Most of the times when people think about raising mobile app funding for their startup, they immediately jump to venture capitalists. It is obvious as “Venture Capital Investments” is a very popular term. Venture capitalists make some of the biggest investments and are seen as the “big fish” in the startup funding world. So, venture capitalists is the obvious option, but what are the other options you can look at?