7 smart ways to raise money for your mobile app startup in 2021
Every mobile application startup begins with an idea and then goes through an app development phase to make their idea a reality. But how much fuel there is to power the development process is determined by the amount of money raised before development even begins.
There are two ways to raise money for your idea: by being an independent developer (thereby doing the work yourself) or by raising capital for your mobile app startup. If you’re considering fundraising, this article will talk you through the best ways to do it.
Let’s get started.
Why is app funding important?
Nearly 94% of startups fail within their first year. One of the most frequently cited reasons is a lack of financing. As money is the foundation of any business, the journey from concept to revenue-generating startup requires cash. This is why it’s essential that every entrepreneur asks them self, “How can I finance my startup?”
Let’s look at some of the simplest ways you can raise money for your startup.
1.Prepare a great elevator pitch for your app idea
You need a great pitch to effectively communicate your mobile app’s features to a potential investor. The best way to think of it, is to imagine you and your investor are travelling in an elevator and that you have a limited amount of time to convey your app’s central idea. Within the first 90 seconds, you must be able to sell them on your product.
Spend time on honing your app pitch and keeping it brief but informative. This technique should be used not only on the pitch you use when meeting people, but applied to everything you write, including emails. And make sure you include information on the mobile application platforms through which you intend to launch your new app, as well as your strategy for app development.
2.Develop and fine-tuning your app concept
Investors will initially want to see your value proposition. A key part of this is identifying an “uncontested” market for your application. This will prove you understand your competitive landscape and know how to find the proper market for your digital product. You should become familiar with how other apps address the same issues that yours does. It’s also smart to investigate alternative products in your market, particularly ones that are not app-centric.
At this stage, it’s critical to decide on a mobile app development platform and a mobile app design methodology. The app development process should begin with determining what problem your app will answer or how it will differentiate itself from other mobile applications.
3.Create a strong and clear brand for your application
To make your app idea stand out, it needs to have a distinct personality. Branding your app gives you a more authentic appearance, which lays the groundwork for brand loyalty and investor trust. Creating a domain name, logo, and landing page for your app demonstrates your commitment to growing your product. It also demonstrates to investors that you are committed to seeing your app idea succeed.
4.Identify investors
You need to find investors who are interested in digital products and are prepared to invest early in your mobile app startup. Look for possible investors among family and friends as well as angel investors and early-stage venture capital firms.
To be successful, you should focus on strengthening your communication and bargaining abilities using the advice listed earlier. You absolutely want to avoid sending generic emails to those who have little interest in the mobile business. Conduct careful research and construct an investor email that is authentic, valuable, and speaks specifically to your target.
In some instances, you’ll need an go-between to help connect you with seed-stage investors interested in digital apps.
Our team at Appomate, can help connect you with proven and enthusiastic investors and investment groups.
5.Make an app demo
You can take your pitch to the next level by including an app demo, which is more engaging than an early prototype. Giving investors a visual representation of your app idea will boost your chances of getting funding.
You can create a high-fidelity user interface for your app demo using technologies like Adobe XD. Other prototype platforms such as Invision are also relatively easy to use.
However if you don’t feel 100% capable of mocking something up yourself, enlisting the help of the best mobile application user interface designer you can find will push your pitch to the next level.
Appomate has a unique process called SBUB (See-it-Before-U-Build-it) that helps you to create an app demo that will have the look and feel of your finished app idea.
6.Apply for grants
What better way to fund your startup than with money donated based on the strength of your idea? Getting a grant to assist your new startup isn’t always easy, but exciting grant programs do exist. Grant programs are available for various types of enterprises and segments of the population, so it’s worth researching:
Grants are available for various types of enterprises and segments of the population. Veterans, women, single mothers, and other minority groups can apply for small business funding.
The Australian government also offers 45% funding for apps that aim to improve our economy.
If you develop an eligible app with Appomate, we can help you secure a rebate.
7.Create a pitch deck for investors
Rather than business proposals, the majority of entrepreneurs today use pitch decks to attract investors to fund their app concepts. The general rule is that your pitch deck should be clear and concise. It should include a strategy for acquiring mobile app users as well as an estimate for app development costs.
The most effective strategy to develop a pitch deck for investors is to draw inspiration from businesses that have successfully raised capital using this method. Take notes and be inspired by the finest startup pitch decks. The key to successful mobile application development projects begins with the creation of an effective pitch deck.
Final thoughts
It’s a fact of investment that you’ll receive more “no” responses than “yes.” Don’t get discouraged but instead try to understand why. Don’t be afraid to kindly ask for feedback on how to enhance your pitch or app idea. It could help you ahead of your next presentation.
Remember, every failure teaches you something important, and the best course of action is to cultivate an attitude of constant improvement.
For personalised help on how to get backers for your app idea, or to find out how we can connect you with potential investors, reach out to Appomate for a free chat.
Top 6 questions to ask your mobile app developer
You’ve got an idea for a mobile application. You consider the potential benefits of mobile and web-based applications including a more accessible client base, increased revenue, increased niche authority, and a more focused user experience. Everything you read is telling you that there’s never been a better time to launch an app business.
But to get started you’ll need investment, enterprise, and the right app company to create the app. The process of hiring the right app developer can be time-consuming, but finding the right team could be the difference between your app succeeding or failing.
What to ask when hiring an app developer
It can be difficult to know what questions to ask when hiring app developers, but a good place to start is to learn about their experience, skills, portfolio, and vision.
Here are some key questions to ask when hiring an app developer.
1.Have you helped in the growth of any startups?
Contributing to the growth of a startup requires a different set of skills than developing apps for established businesses and clients. App development companies must take on a much larger coaching and leadership role to assist startups in navigating the development process and beyond.
At Appomate, our extensive work with entrepreneurs and startups has given us a deep insight into how startups function and what they need to succeed. We’ve helped many startup clients transform their initial ideas into a profitable business.
2.Tell me about your success stories with mobile applications
Proven success with previous developments is an excellent indicator of a company’s ability to develop mobile experiences that users respond to. Trusting your idea to a developer who lacks this experience may result in complications during the development process and, ultimately, a waste of your money.
At Appomate we constantly update our understanding of what makes a truly great mobile application.
One of our proudest accomplishments was the reduction of food-safety checks from 20 hours to 2 with the successful Safety Food Zone app we built for our client, entrepreneur Nick Liolios.
3.How committed are you to user experience design?
App development is not solely a matter of writing code. User retention increases when your app features superior design and exceptional user experience (UX). This leads to increased revenue and stronger growth.
It’s important to find a developer with complete commitment to design thinking and a strong emphasis on UX.
At Appomate, we’ve found that data-driven design and user experience are inextricably linked – one informs the other. We test and experiment continuously in order to collect enough data to make informed design decisions that are not based solely on ideas. One of the primary benefits of collaborating with a large team of specialists from diverse fields is the ability to share knowledge and experience across development boundaries.
4.Where can I find feedback about you from previous clients?
There are numerous ways to obtain information from previous developer clients. Don’t limit yourself to reading case studies on a website. If a developer can’t provide it directly, look for feedback from previous clients via directories such as Clutch.io and Google reviews. Take the time to thoroughly research a development company’s history and successes. This will give you a more complete picture of their capabilities.
At Appomate, we happily to provide direct contact information for our previous clients and believe every reputable developer should be able to do the same. This way, you’ll never be forced to make a critical decision based on second-hand information.
5.What types of businesses have you developed applications for?
Working with a company of a similar size to yours is an essential but frequently overlooked consideration when selecting the right mobile app developer.
A large enterprise operates very differently to a startup or small business, and these organisational differences can translate to the application development process. Larger organisations may require formal documentation, specialised project management processes, and increased meeting and update frequency. Smaller businesses might require greater budget oversight and may operate with less stringent procedures.
A mobile app developer who has worked with a business of a similar size to yours can be extremely beneficial, as they’ll probably have a better understanding of your processes and how you work. This reduces the likelihood of cultural clashes and conflicts, allowing everyone to focus on building the best app possible.
If an app developer has previously worked on enterprise projects, it’s a good indication that they’ve been thoroughly vetted and passed stringent tests. Enterprise companies have stricter reputational demands and greater financial strength, meaning they don’t take risks with their partners.
Throughout our history, we’ve had the pleasure of collaborating with a variety of businesses, including startup like sharetree and big enterprise like L’Oreal and Adidas.
Last but not least question is what are their company values?
You might find a best developer in the world but when their values doesn’t align with yours it would be difficult to get a win-win situation
Our values are
Caring: We are here for 1 reason: To help you succeed. With every client, we invite a new friend into our lives. We deeply care about you and your dream.
Daring: Building disruptive, innovative apps needs courage. We understand build something for the first time take bold commitment. We commit and back it with our actions.
Honesty: Transparent communication is at the core of how we operate. Build something new, disruptive not only takes courage but also honesty.
In conclusion
Knowledge and understanding are critical components of success in business. The more information you have, the more prepared you are to deal with whatever comes your way.
Gathering relevant data is a key element of your decision-making process. A collaboration with an application development company is fraught with complexities. For the process to run smoothly, the needs of both parties must be met.
A developer who is ideal for one project may not be ideal for another. Make a list of your primary concerns, concentrate on your primary objectives, and ask the questions that will enable you to make the most effective decision possible for your circumstances.