5 Ways to Get Your App Funded
Good ideas come in all shape and sizes and if you are an ‘ideas’ person having a ‘vision’ to explore and execute it then this post is for you. I heard someone saying in an interview that if your ideas grip you like a disease and leave you only after you start auctioning towards it then you have the potential to make it happen! If you are planning a startup and ready to nail through your sales pitch then we have something exciting for your app funded.
Coming up with an investment source is not easy, but here are some resources to get you started! The sources are a fusion of lot of factors, but somewhere it relates to your social status and involvement.
You should be active enough to explore social media for your product. Optimize it on Facebook, twitter and Instagram so that people should know about it; manage Linkedin profile so that if some investor wants to contact you, he should have legitimate means to get in touch with you! Your activeness on social media can.
This is the most common and initial thought of raising funds but can prove to be equally difficult as well if you don’t get investors. Buddy funding is the manner of raising funds from investors after influencing them with your idea. What do they get in return? Share of your venture! They are lucrative to get ownership in the start-up plus a share in glory of business.
This can be equally risky for the investor and thus along with increased inclination to financial rewards, their vulnerability towards losses is almost equal. The investors generally we are talking about in this aspect are angel investors. These are affluent individuals who provide capital for budding individuals having valuable concept or idea.
This is the reason that sometimes it becomes difficult to get funding through this mode. If your idea is really cool and you have influential skills then you will sail this boat! It’s good to get the investors involved and taking them through the business plan even if it is rough sketch.
There are many contests to provide platform for new ideas to flourish. These are mostly judged by business incubators and angel investors and thus you have a high chance to get selected if your idea is worth bearing profits. You have to present a pitch in front of many judges and influence them how your idea can change the lives of people. What you will get as a reward is much more than your expectation and thus you need to perform to exceed the expectation of judges!
The contests are highly competitive but yes if you have an idea then they are worth participating! If you could somehow show the prototype of your app then that can work in your favour undoubtedly. These contests provide superb platform for potential businessmen.
Venture capitalists are present at such contests to provide seed funding but one should have detailed business plans with clear exit strategies. You might receive many rejections in this conquest but this is definitely a way to proceed towards your aim.
An interesting but extremely risky mode is crown funding. Unlike buddy funding, in crowd funding you pitch in your idea to public and invite small investments. But there are advantages and disadvantages attached to this mode which are as follows.
- Easy to reach out to public, so easy to find investors
- Small contributions can make a huge difference
- The idea is released out to the vast majority of people which has a risk of getting disclosed and thus copied over.
- It can be difficult to convince public with new emerging ideas
- Difficult to calculate the monetary value of novice idea.
There are many different schemes of banks and financial institutions in which they provide small business loans to startup entrepreneurs. These schemes are very beneficial as banks budget specifically towards these and they have special instructions from government to utilize this complete budgeting.
Most of the entrepreneurs are not aware of it and thus there is always a scope of exploring this option. But what is required and expected from you is:
- Effective market research
- Revenue Projections, and
- Strong Business plan!
If you could present the bank this plan effectively and efficiently and convince that the inflows would be enough to repay the loan then you would definitely get the loan. Also, the incremental amendments relating to waiving off interest or such beneficial aspects can benefit your business product and the market!
Your own savings are the most dependable source of funds and whenever you invest your share, you feel more concerned towards it. Bootstrapping basically means raising money through your own resources, it can be through your existing job, savings, investments or alternate businesses or through your own resources.
If your intended project is still few months away then start accumulating the capital for it. You can bootstrap with your co-partners! This doesn’t mean you require only those co-founders who can contribute liquid cash!
A tech-savvy co-founder can help in building the prototype of app without spending penny towards it, a finance co-founder can help you in managing and investing funds in a better way, this is how you can bootstrap the skills! If your app is in infancy stage right now, then this is the best time to learn and execute bootstrapping!
There is lot of difference between great idea and a great product, Steve Jobs once said. So make sure that you prove your execution which will give you a better chance to raise funds for your first app.