Fundraising can be as daunting as starting up for an early stage app entrepreneur.

There are a lot of articles about raising funds via angel investors, venture capitalists, hedge funds, etc.  They are the most common ways by which any startup can raise capital.

As we all know, fundraising for an early stage app startup is difficult than raising funds for an app startup that is already successful.

So why not try unique & creative ways to raise capital for your startup?

By that we mean, banks and investors aren’t the only options you have to raise funds. Before you can bring on those big guns for funding, you need to prove that you have something worth the investment.

Let’s explore a few unique & creative funding ideas for your startup journey.

6 Unique & Creative Fundraising Ideas

Personal money, friends, and family

The easiest way to raise capital is to approach your acquaintances.

The vast majority of apps are initially funded with the help of personal savings and resources of their founders (and founder’s friends and family). If you are not able to convince your friends and family with your idea, it is going to be pretty hard to convince a stranger.  The best part of this fundraising is often it is interest-free.  If you are hesitant, you probably don’t believe in your idea fully. Look at it as sharing the opportunity with your friends and family. 

Crowdfunding

Crowdfunding is an option to raise funds for seed capital. Though most crowd-funding platforms adopt an “all or nothing” approach to crowdfunding campaigns, there are other options as well.

For example, Indiegogo offers many flexible plans which allow app entrepreneurs to keep the money accumulated even if they don’t reach funding goals.  Read our funding options blog for more details about this option.

Pitch contests

There are contests that are held around the world, allows people to get in front of investors and pitch their app ideas. If you Google ‘pitch app ideas’ or ‘start-up pitching contests’, you will find opportunities in your city. Many universities globally also run contests to offer seed funding for startups.

• Code Launch is an annual event where people with app ideas pitch their app idea to the community of investors.
• Syd Start is a startup conference in Sydney which runs pitching contests.
• There is even an app to pitch your app idea 
• The University of Melbourne has its own start-up incubator, called the Melbourne Accelerator Program. 
• Melbourne’s RMIT University has an investment fund offering seed capital to students and alumni. 

 Google “pitch deck templates” to find time-saving resources for app creators. 

Accelerators

Startup accelerators are programs that include education and mentorship with public pitch days. Typically, accelerators invest $20,000 to $50,000 in startups in exchange for equity.

Y-combinator and Techstars are among the first seed accelerators. Startmate and Angelcube are Australia-based accelerators.

Government Grants

It is worthwhile to consider the many grants your government may offer for tech start-ups.  In Australia, there is a Research and Development program that provides a significant tax incentive to app companies that qualify.

The R&D tax incentive program helps you get up to 45% of your expenses back when you are in a loss position.

The Australian Government provides 45% tax rebates for apps that aim to improve the economy. Your app idea must be novel and qualify as a research and development project.

There are companies which help you apply for this program.

• ATY Advisory is a private consulting firm specializing in assisting small to medium-sized companies to gain access to Research and Development tax credits.
• The Victorian government, in particular, supports innovation by providing funding to entrepreneurs who focus on projects that simplify policy changes and aim at providing value to the public.
• The city of Melbourne offers grants to small businesses and start-ups.
• The Australian Government also provides financial assistance by funding new businesses.
• The Australian government has an Entrepreneurs’ Programme for budding entrepreneurs.

The Queensland government-funded “iLab” is one of Australia’s largest schemes for technology start-ups and had incubated over 100 start-ups.

 The Western Australian government offers an “Innovator of the Year Award” granting the winner a $100,000 package.

 Check which funding programs you qualify for by answering a few questions at the following link.

 Start-up funding loans

Many organizations offer loans to start-ups and other small businesses. These funds can be utilized by businesses as seed or growth money. 

Some good sources are:

• Kikka Capital makes things easier for businesses by providing approval for a business loan of up to $100,000 in just 7 minutes. 
• MoneyPlace specializes in peer-to-peer lending with funding up to $35,000. 
• Moula offers to fund to start-ups and provides an option of instant approval for funding of up to $100,000. 

Personal funding, crowdfunding, pitch contests, accelerators, government grants, and loans all represent valid avenues to raising the funds you need.

Conclusion

Don’t believe you can’t find the money to pursue your great idea!