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:

• Federal government assistance programs 
• Grant programs administered by state and local governments
• Private foundations

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.