Moonshot Capital - Top 9 Ways To Raise Money For Your Mobile App And Accelerate Growth!
To develop an app from the ground up can take a hefty toll on your time, energy, and money with no guarantees of sure-shot success. If you have an idea for your mobile app, most of your job is done! Now only planning and execution is left. These are the two things that have the potential to give you an edge over the others in the market. These are also the two most expensive tasks. An average mobile app may cost as much as $50,000 and there is absolutely no upper limit to this.
In such a neck and neck scenario, the question of raising working capital is bound to arise amidst SMEs. To make your dream turn into a reality, just having a great idea is not enough. The “deciding factor” (whether your idea will survive or not) is all about securing funds. You do not need a bountiful funding right in the beginning, just a couple of thousand dollars are good to get you started!
In this article, we will discuss top 9 ways you can raise working capital for the app of your dreams!
When the economy is thriving, banks are more than willing to sanction a loan. The good part is that once you prove that your business idea can really revolutionise the world, you can secure abundant funding. On top of that, most banks offer loans at a reasonable rate of interest. Although the loan-lending schemes for digital enterprises are banal. They have a “cookie-cutter” approach and often the entire process is plagued with red tapism.
Your friends and family could be involved in your business plan to gain some working capital. Chances are that people in your network will be more patient and forgiving as compared to other modes of financing. In return, you may offer them some share of your profit. The downside to this is that, this mode is not scalable. Your friends and family may not be able to lend you $500,000 that easily. Also, one should keep business and family separate.
The doors to get publisher support to help you finance your mobile app are always open. This is also a very popular and well known method of getting funded. You may get a good brand attached to your dram but you would have to give up control of your app. Also, such a method of funding may take a long while. If only you have the time and energy, then consider this option.
Looking out for venture capitalists is one of the most conventional ways of getting funded. Despite the fact that there are a lot of venture capitalists out there, doing your homework before hand is a must. In this mode as well, control over your business idea would be lost. Most of the venture capitalists seek a certain amount of equity before investing. So if you feel this is the best option for you, look for a venture capitalist who really believes in what you are doing.
Crowdfunding is a modern way of financing a venture. All you would have to do is pitch your business idea to the public and seek minor investments from them. In return, you may give them a free version of your app (or anything else). But to raise sufficient money via crowdfunding, your business should already have a good following and rapport in the public. The good part is that; ownership of your business idea will rest with you. The downside is that; you will never know how much funding you will secure using this mode. Also, you may have to get a Non-Disclosure Agreement signed so that novelty of your business idea is preserved. And in case you are not able to meet your goals, all the money has to be returned.
Every other weekend there is a gala conference happening somewhere or the other with whopping cash prizes and other incentives. This is also a fairly unconventional way to gather funding for your mobile app idea. Even though the prize money may not be as much as it is required, it will certainly give you a mega headstart. Apart from that, hackathons and contests are a great place to network. Chances are that you would meet like minded people, maybe even someone who would fund you. The downside to this is that; this is not a reliable way to obtain funding.
Managing the financial aspect all by yourself can be an arduous task. It would be better to find yourself a “co-founder” and share the burden. Make sure you find someone who you can trust and share similar vision. It would be even better if you find a partner who already has a lot of capital to start with.
If you are not able to match your synergy with any of the ideas then the best way to go forward is to capitalise on yourself. You can finance yourself with your own savings or you can learn how to develop a mobile app all by yourself. A lot of SMEs today follow this route because it is the most trustworthy way to proceed further.
Getting adequate amount of funds to sustain a business idea can be tough but such is the road to success. There is no one formula to gain fund, a combination of several funding methods may work out to be the best one for you. We hope our list gave you deeper insights on how you could raise working capital for your dram. We wish you good luck in all your future endeavours!