In the growing age of technology, relying on traditional business models is idiocy. What if your mind starts with an idea to develop a new app? What would pop up in your mind? How to get funds, right? According to some recent studies android app ecosystem, iOS receives around 2000 new apps within 24 hours. Within the last 5 years, the number of apps added only to the app store has increased to more than 750,000. From these statics, you can identify how fast this industry segment is growing.
It will also help us be acquainted with how beneficial it is to develop a new app, whether we’re developers or Mobile App Startups. Unfortunately, having a creative idea for developing an app is not enough. To develop an app, you need funds, a team of developers, market research and time to do experiments, etc. A single person can’t know all these errands. It’s hard to take your brand or business to a higher level if you are unaware or reluctant to adopt new technology.
Though every means of marketing has a mammoth impact on sales, mobile apps now serve as the best tool for growing business. Using a mobile app (business app) is a perfect scheme for those who want to build a loyal customer base so that their customers get their best experience. Most often than not, it’s hard to fund your app solely, and you need some support from others to complete this task. Once you have an idea about developing an app, the next step is finding funds. But, before asking someone to invest in your app, it’s better to have a piece of complete knowledge about the app and its strategies.
First, research the market, explore the already existing apps and their specifications, and figure out how your app would be different from those. Secondly, make a business plan and categorize how you will complete your tasks. After making a plan, looks for a skilled app developer to develop your app. After completing these three steps, it’s time to search for investors who can provide funds. Having a complete app development game plan in your hand will help you convince mobile app investors to invest.
Also, inform your investors about the benefits of investing in a mobile app. Once they agree to pay for the app, start the app development process and continue editing until it becomes a unique mobile app. Before moving towards the ways to find investors for mobile app startups, we will discuss some future benefits of spending your funds on a mobile startup app.
Benefits of Investing in Mobile app Startups
Here are some significant benefits that can help investors decide that investing in a mobile app startup is good.
Brand Exposure and Engagement
A newly developed app can help you skyrocket your brand recognition if you add some social features to your app. As per recent trends, people use the mobile app to purchase, pay bills, and contact others. Social apps like Facebook, Instagram, and Twitter are the most widely used social apps nowadays. To make your app more attractive and user-friendly, add some social features such as like, comment, and share that allow people to share views about your product and, in turn, increase your brand’s reputation. The availability of this feature also helps customers to access your products easily.
Serve as a Marketing Tool
Another essential benefit of investing in mobile app startups is that it will serve as a marketing medium for your brand. People can learn every feature of your products and gather all the relevant information through your app rather than visiting the outlet or searching on other social media platforms.
It Helps to Analyze Growth
When your company has its business app, it will help determine how fast or slow the growth process is. When customers download your app and share their views about your product, you can collect that data to understand how fast your brand grows. Furthermore, it will help you analyze your customers’ behavior and their desired needs regarding your products. After knowing their need, it’s easy to modify the product accordingly.
Provide Customer Services
A most important benefit of using a mobile app is that it allows timely responses to customers’ queries. If your customer gets stuck at any point and can’t reach your support teams on time, it will reduce customers’ loyalty to your brand. An excellent mobile app helps you stay connected to customers and help them whenever needed.
An excellent mobile app associated with your brand will enhance your brand’s visibility. As more and more people learn about a brand through mobile apps, it will increase the chance of a sale. So investing in mobile apps is beneficial by every means.
After discussing all the significant reasons why developing a new app is necessary and how it can benefit investors, we will now discuss ways to find investors for mobile app startups.
Ways to Find Investors for Your Mobile App
The mobile app market is flooded with new and innovative apps, and competing with them is intricate. If you plan to develop a new app but fall short of funds, you can use one of the below-mentioned methods to find investors for your mobile app. Let’s look at some practical ways.
Relative and Close Friends
Your app’s most genuine and valuable source of funding is your savings. But if you fail to save something to invest in the future, you can ask others to invest their savings in your app development process. But don’t you think it’s pretty unofficial and. unfair to ask someone to spend their savings for you? It is tough, but you can return them a percentage of revenue once your app starts working. Close friends and family members like parents and siblings could be the best option to borrow funds from or ask them to participate as co-member.
Find A CO-Founder
The second meaningful way to find funds for your app is to find a co-founder willing to invest money. It could be a plus point if your investor offers his service in the development process. Sometimes finding a partner with tech knowledge is nothing less than a blessing, and a partner with tech-savvy skills can help you develop a prototype app that would stand out in the market.
Collecting funds for mobile app startups can be tricky when you fail to find money from friends/ family etc. Another trustworthy option is to consult banks. There are many ways banks offer loans to business people. Similarly, you can apply for a loan and get your desired amount to support your idea. Borrowing funds from banks is a pretty common phenomenon; you have to pay their service charges, that’s all.
Business Enterprise and Angel Investors
If you think you need funds and have a perfect proposal for your app, then it’s better to consult a Venture capitalist. Venture capitalists are usually rich companies who can invest in other’s small businesses to get some profit. But your app idea must capture their attention to get funds from these companies. If you fail to present your app’s games plan appropriately, they may refuse to invest funds in your app.
Secondly, you can consult angel investors; these are usually single individuals with a lot of money who agreed to invest in your project if they find it capable. For example, a brand owner may show his interest in investing in your app because it could be a good marketing tool for his brand. So it depends on how well you define your idea in front of investors.
Participate in App Contest
App contests allow developers to showcase their unique apps in front of worthy investors. These kinds of contests are frequently held all over the world. So if you are searching for worthy investors for your app, you can participate in these contests to show investors how perfect your app is. For that, you can create an MVP. An MVP or a demo will help you hunt potential investors as it makes your app more tangible and understandable. While on the other hand, just a visual presentation may not capture an investor’s attention.
Raise Money Through Crowd-Funding
Crowd-funding is another method you can use to raise funds for your app. Crowd-funding allows you to collect money by advertising your app on the internet and other marketing platforms. But one drawback of crowd-funding is that it takes more time and effort than all other methods. Remember one thing hundreds of ideas posted on crowd-funding sites go unnoticed because they lack attractive showcasing of their project. If you succeed in displaying your startup app more fully, you may get selected for the funds. Once you pass their criteria, you will receive enough money to develop your app in retunes of some service charges.
Developing a new mobile app is a costly project. Even if you want to develop a simple mobile app, it will at least demand $10 000. Your budget will continue to increase as the level of technology and features of the app increase. Not everyone with a creative mind holds enough money to fulfill their dream of developing a mobile app. To resolve this issue, we have listed the 6 best ways to collect funds for your mobile startups.
The most commonly used methods are angel investors, universities, banks, and business enterprises. All these methods differ in the amount of money they provide so you can choose one according to your budget requirements. Even if you don’t know how to develop an app, you can hire app development services in the United States and get your work done.