Looking at the rising digital world, entrepreneurs are targeting to initiate a startup with their mobile idea. Mobile app development is a complex process and demands capital investment depending upon the requirement. And, the question of how to raise funds for mobile application ideas is triggering in their minds. This article will present ways to raise capital for your mobile application idea startup.
Top ways to raise capital for your mobile application idea
Bootstrapping is the process of raising funds as capital from friends, family, colleagues, and personal savings. For an initial startup, you do not require massive capital. So, you can likely turn to colleagues, family, friends of friends, business partners, and other people falling into your network. These are the people who have the most trust in your capabilities. They know you, and you do not have to prove your capabilities to them before getting funds. In other places, you definitely have to present your idea and prove you are capable enough.
The key process to bootstrap is explaining your idea with confidence, and they will provide you feedback on your idea. A PowerPoint slide explaining all the information is enough to attract capital from your most trusted people in the network. But, keep in mind the professional elements since even your trusted people want to see the zeal in you for your business. Finally, an idea strikes a long time before we actually commence. So, when you are sure about your idea, wait for some time and use your personal savings and assets to fund your mobile application idea.
Raising funds is incomplete without debts, and there is nothing bad about asking for debts from a financial institution. Your first choice of debt can be your credit card. Ensure that the interest period for no payment is as long as 6 to 18 months so that you get some time to establish and grow your business. Focus on market research and demand the debts accordingly from financial institutions. Market research is important because a mobile app idea varies from platform to platform. For example, the rates of app developers for iOS might differ from other platforms.
Angel investors, as the name suggests, are highly influential in the capital building for your app idea. Angel investors are entrepreneurs or groups of entrepreneurs whose business is to invest in capable business ideas and increase their capital with their high net worth and fame. Angel investors also bring resources like talented people and technologies to your business other than just investing money. They take stakes in investment and look for methods for further increasing the valuation of the company.
App incubators are like angel investors who fund your business. But, with funding, they also provide you with infrastructure and training to scale your business idea. Some companies offer services as incubators. For example, some app developers for iOS may provide you with an iOS app as an incubator and become an investor in your company in exchange for stakes. But, you have to prove your business idea to them.
At the initial point of starting the business, seed investors assist in building a business. Seed investors agree upon investing in a company for a time frame and agree upon a certain amount of returns. Once the business reaches its agreed requirements, they exit from the business. Seed investors do not make massive investments. But, they are a good option for an organization that wants to initially start a business, bring in employees, and set up a small infrastructure.
In the end, under promise and over deliver
The above 5 pointers will assist you in understanding the ways to raise funds for your mobile app idea. Explore more detailed ways to raise fund from investor for your app idea. Ensure that you extensively perform market research since the budget and planning are not the same with app developers for iOS and android. Further, pay emphasis on the principle of under promise and over delivery. The investors investing in your mobile app idea want to see results. And, when you give efforts in your business, it is possible that the existing investors will invest more in your company. Earning credibility and trust must be one of the key focuses. Finally, communicate with them on a regular basis to gain feedback and possible opportunities.