How to Get Funding for Your App: Tips and Tricks
When it comes to funding, the most common scenario is that you have a great idea for an app but have no idea how to fund it. Building a mobile app takes time and money if you use certain resources. If you’re having difficulty getting the necessary funding, check out these 5 strategies to jump-start your venture capital, from networking and crowdfunding to leveraging assets and applying for grants. In this article, we’ll discuss specific funding tips and tricks.
From developers to UI/UX designers, developing an app will take time and effort from you. To save you the trouble, we gathered for you the top five most important funding strategies with quick tips to help you through your app journey and facilitate it.
How Much Funding Will You Need for Your App
Understanding how much money you need for your project is one of the crucial steps you take toward your app-building process. We get that you have a brilliant app idea, but you have to take into consideration that “brilliant” could be costly. We want you to do this the right way with the right strategies to help you save time, effort, and money. What we’re trying to say or advise you on in general is that you should take the time to thoroughly consider your app’s concept because this is what will help you determine how much it will cost you to build an app. Firstly, you need to learn more about the skills you’ll need to build your first app. The following are the five most essential funding steps, tips, and strategies to follow:
Define Your Goals Clearly
Before applying for mobile app funding, it’s important to define your goals. Defining clear goals helps demonstrate that you have a plan and know where you are headed. When pitching your idea, making sure there is no chance of confusion around your concept and what you need the money for is key to portraying yourself as a valuable investment opportunity. Be prepared to explain your goals clearly and concisely.
Research and Analyze the Market
After setting your goal, it is essential to research and analyze the market. Knowing your target audience, industry trends, and competitors will give you insight into those areas where your app can provide unique value. Assessing industry competition will also help make sure you have an edge with your idea, making investors more inclined to consider putting their money behind it. Before pitching an investor on a mobile project, you need to take these steps to make sure it will be successful.
Network and Research Potential Investors
An effective way to find investors for your mobile app is through networking and research. Utilize existing networks, such as members of a local startup community, industry professionals, and online platforms like angel investor websites or crowdfunding sites, to initiate discussions around potential investments. This can help you determine the right type of investor to pitch. Additionally, talking with other successful entrepreneurs who have gone through the process will give key insight into how to go about it most effectively.
Craft a Compelling Pitch Deck Presentation
A pitch deck is a presentation that consists of 8 to 15 slides that provide a brief overview of your product, the problem it solves, the market opportunity, the management team, and the investment you are seeking. This should be designed to capture and maintain investor attention, so keep it visually appealing and limit text. Your slides should also showcase research such as competitive analysis, product demos, and customer studies to demonstrate the validity of your idea and highlight gaps or areas in need of investment.
Put Together a Business Plan
Creating a comprehensive business plan for your app is an essential step for getting the funding you need. Include important details on who your target audience is, how you will make money from the app, and what milestones you are aiming to reach. You should also provide financial projections, including estimated costs of development, market projections, and monthly expenses. When finished, review your business plan multiple times to make sure all information is correct and up-to-date before presenting it to potential investors.
Is Too Much Funding Good or Bad?
While you can be in a tight situation with little funding, too much funding can also be a bit problematic. “Too much of anything is as bad as too little of it,” as Ray Bradbury once said. So here are a few questions to ask yourself while you’re contemplating how much it will cost you to build an app:
- What kind of services will your app have or provide?
- What features are you going to add to your app?
- How complicated can these features and functionalities get?
- Are you developing your app through an agency, a freelancer, or a certain app builder platform?
- What is your desired app design?
- Will you integrate your app with any integration points? like third-party systems or APIs?
Contemplating and answering these questions will help you shape your app-building journey and determine how to get the exact right funding for your app.
Stages of Funding: A Quick Review
Now that you’ve asked yourself all these contemplative questions about your app, let’s dive into the stages of funding. There are five main stages of the funding process. We’ll go over them in depth so you can understand each one’s objectives and specifics.
#1— Pre-seed Funding Stage
As the name implies, pre-seed funding is an investment phase that is acquired prior to product-market compatibility and before revenue. It occurs right at the start of a startup’s life, when the founders are motivated by many brilliant ideas and fuelled by lots of coffee and sleepless nights but have yet to make any progress on developing the product. This is the stage when you bring in your business network or simply invite your personal investors to build a prototype of your app or business project in general.
#2— Seed Funding Stage
The initial step of official equity fundraising is what we call “seed funding.” It often symbolizes the initial formal funding that a business endeavor or enterprise raises. Some businesses never make it past the first round of funding or seed money and into the Series A rounds or further. With seed funding, a business can get help deciding on its final products and target market. A founding team is hired with the help of seed capital to carry out these responsibilities.
The name itself means what it resembles. The “seed” funding can be compared to planting a tree in your mind (as in the idea). This initial financial help is likely to be the “seed” that will help your app’s brand grow. The business should grow into a “tree” over time if it has enough money, a good business plan, and investors who stick with it.
#3— Series A Funding Stage
This stage is all about your app’s active growth. It is also the beginning of venture capital funding. Most investors and venture capitalists wouldn’t want to invest in a business app that isn’t achieving any kind of active growth. Keep in mind that they WILL fund startups or initial projects with a track record of active growth and high potential. This is why we advise you not to set high expectations for good money before reaching this stage.
#4— Series B Funding Stage
You will be applauded if you make it to this stage. This funding stage means that your app is probably going to make it to the top and be as successful as you can maintain it. This stage targets a more rapid development plan, better brand exposure, and market expansion. This will lead to your shares going up in price, which means you should be selling fewer shares and taking better control over your own startup business app or project.
#5— Series C Funding Stage and Beyond
Reaching this stage means that your app has made it and is already successful. This means that you knew exactly how to get funding for your app. This stage indicates that you are already covering all of your operational expenses without the need for third-party funding. This stage proves and reinforces your app’s strength and success. Some businesses choose to complete certain other stages beyond the “Series C” funding stage, while others like to consider it the final stage and start upgrading their product market and starting to expand with their brand.
To Wrap It up for You With How to Get Funding for Your App
As stressful as it could be to come up with a flawless funding strategy for your business app, if you walk through the process and follow the right steps, you’ll definitely be rewarded. You can start by having a great idea and coming to us here in nandbox so we can make it happen and lay it out to you in product form. In nandbox, we offer you an app-building experience that is of great ease and satisfaction. With our app builder, you can create an app from scratch in any industry of your choice. Adding features has never been easier, and with our drag-and-drop feature-adding method, you’ll have a hassle-free experience. You can start putting into action the funding steps we talked about before as soon as we finish building your app with you.
With a detailed documentation section, a full preview of both Android and Apple systems, and a list of various features and templates to choose from. Our app builder simply has it all. Sign up now, claim your 14-day free trial, and enjoy the app-building journey.