How To Get Funding For App Development? Some Useful Ways

How To Get Funding For App Development? Some Useful Ways

An unfortunate reality is that most startups and entrepreneurs have great ideas but no money or lack programming skills. From VC funded, to angel investment to self-funding, funding for app development can be done with multiple options.

How much money/funding do you need for app development totally depends on the kind of app you want to develop. Let’s give you a brief idea. A local single platform app would cost you as little as 25k, and a more complex cross-platform app may cost you between 50-100k. We can help you with the app scope or requirements if you want.

Moving on, there are many funding options, if you want complete control and ownership, can go with self-funding. Easy way to jumpstart yourself, however, you can never be sure of the app’s success once it’s tested in the real market. Usually, self-funding is not recommended. We recommend seeking venture capitalists or angel investors.

In this article, will share how to find investors by sharing the funding rounds details along with types of funding options and app development cost.

Table of Contents

1-How to find investors for funding?

Before sharing how to find investors, you should be well aware of where your investors are.

There are several investment rounds with a proper structure. By structure, we mean funding rounds. Let us guide you one by one.

Seed round – the very early round in funding app development. Usually, seed funding comes from the insiders who kickstart the startup via their capital and let the business establish.

Angel round – in this round the app looks for angel investors. This round is more formal and often comes from investors who buy common stock in a company and have formal terms and conditions.

Series A – a large-scale venture capital funding is asked for. The series A rounds generally bring $2 – $10 million.

Series B, C, D – Connects with tech startups and turns a startup into an enterprise. Usually, by series C, your business estimates at around$80-100+ million.

IPO (Initial Public Offering) – a startup is no more a small existence. The company sells shares to public. An excellent way of getting funding and accelerating growth.

List of sources for finding investors online

1- AngelList (it has more than 40,000 investors, but ideally pick only top 30-50)

2- Funded.com

3- Angel Investment Network

4- CircleUp

5- Kickstarter

6- Indiegogo

proven ways to fund app idea

2-Types of funding options (how do apps get funded)

Crowdfunding

Normally, there are crowdfunding platforms where you can pitch your app idea and get the funding. Kickstarter and Indiegogo are popular crowdfunding platforms. In simple words, users/buyers/investors can buy your digital product before it gets developed/mature as they like the idea and think that it would break the market and earn handsome revenue.

ICO and IEO

Blockchain-based startups can literally seek advantages from ICO. The money raised here is in the form of cryptocurrencies. However, such funds are risky as you are uncertain of their future value. But blockchain projects totally understand such concerns.

Self-funded / Bootstrapping

You can be your app investor, oftentimes it’s considered wise to seed fund your startup as this will give you complete control over the app development. If your app succeeds, you may not need funding but can seek funding during the later stages of your business.

Business Incubators

Incubation centers not just provide the initial seed funding but help in mentoring as they organize lectures, business meetings with useful business contacts, share insights, etc.

Angel Investors

Angel investors or venture capitalists are generally looking for a startup with unique selling idea and they like to invest which intrigue their interest. In exchange, Angel investors won’t ask for much control but VCs usually ask for control over development.

Bank Loans

The most common form for seeking funds is via banks. They lend you loans and keep your assets for guarantee. Also, these days governments support startups and banks with reasonable interest lend you loans.

Private investors

If your business idea is targeting a specific industry you can pitch your idea to the relevant business tycoons. They may be more interested in funding then those who have little to no knowledge of your app niche/category.

Colleagues, family, and friends

If you have a well-connected circle of family or friends or colleagues who are eager to invest in your idea with a stake in the company, it’s a good idea.

3-How much does it cost to build an app? Phaedra Insight

An app development cost depends on variable factors like the type of app, complexity, the technology stack, and the region from where you are seeking development services.

An average app development cost starts from $50,000 and goes up to $140,000-170,000.

Simple app development cost – $50,000 – $70,000

Advance app development cost – $100,000 – $300,000

However, we prepared a detailed blog, do give it a read for a thorough understanding of pricing.

https://www.phaedrasolutions.com/blog/how-much-time-and-cost-does-it-take-for-a-real-estate-mobile-app-development/

Final verdict

You should be asking yourself who will invest in your mobile app development idea. There are thousands of apps deployed on app stores daily, so instead of promising unrealistic revenue figures, do your market research. The idea of the app must draw investors’ attention. Uber is a perfect example. When the concept was shared, it was considered unique and Silicon Valley invested resources and finances in summer 2015.

Another key point here is selling ideas with confidence and keeping a backup monetization. For example, the Spotify app is in limelight, they have a freemium model and earning money via ads and app funding but it has a strong contender i.e. Apple music. Spotify is struggling with its idea and still hasn’t got venture capitalists but it has a backup in the form of freemium, and advertising royalty.  

Do not fell prey for any other app development service provider. We take ownership of what we do so that you could grow your business in actual. Contact us.

Subscribe to our Newsletter.

Thank you! Your subscription has been added to our newsletter!
Oops! Something went wrong while submitting the form.

Related Blogs.

Top Frameworks For Mobile App Development In 2022
logos
Top Frameworks For Mobile App Development In 2022
Searching the top frameworks for mobile app development in 2022? Read this blog to find the latest trends in mobile app development in 2022.
Grocery delivery app development cost, features and timeline
logos
Grocery delivery app development cost, features and timeline
Want to know the grocery delivery app development cost? Check out detailed information on this topic from a grocery delivery app development company.
How Much Real Estate Mobile & Web App Development Cost?
logos
How Much Real Estate Mobile & Web App Development Cost?
Real Estate Mobile & Web App Development Cost – what are the major driving factors and how to estimate app dev costs?
How Much Does It Cost To Build A SaaS Platform?
logos
How Much Does It Cost To Build A SaaS Platform?
In this blog post, we will explore how much does it cost to build a SaaS platform, and what our experiences are as a SaaS development company.
How To Start A Streaming Service Like Netflix?
logos
How To Start A Streaming Service Like Netflix?
In this blog post, we will dig out all the features, tech stack and costing you need to consider while thinking ‘how to start a streaming service like Netflix’.
How To Generate Revenue From Mobile App?
logos
How To Generate Revenue From Mobile App?
If you sell a product or service then you should know how to generate revenue from mobile app.
How To Make A Calendar App? Features, Tech Stack And Cost
logos
How To Make A Calendar App? Features, Tech Stack And Cost
In this blog post, we will be sharing real insight into ‘how to make a calendar app’ and the in-app calendar integration.
Loyalty App Development For A Business
logos
Loyalty App Development For A Business
Loyalty app development for your business is more like building a customer retention plan. Small and mid-sized businesses were badly hurt during Covid times in 2020.
Social Media App Development Cost
logos
Social Media App Development Cost
We have covered the social media app development costs and features for 4 major social media platforms/apps i.e. Facebook, LinkedIn, Instagram, and TikTok.
How Do Free Apps Make Money Without Ads?
logos
How Do Free Apps Make Money Without Ads?
In this blog post, we will be sharing ‘how do free apps make money without ads’ by highlighting popular ways of doing it.
How To Come Up With An App Idea?
logos
How To Come Up With An App Idea?
Finding a proven way for how to come up with an app idea is hard. We have a strategy via which anyone can build-on app ideas for any marketplace.
Average Flutter app development cost 2022
logos
Average Flutter app development cost 2022
Flutter framework is great for creating cross-platform apps. But what is the average Flutter app development cost? Read now to find out.
Mobile app development trends to watch in 2022 [#9 is winner]
logos
Mobile app development trends to watch in 2022 [#9 is winner]
Due to continuous rapid innovations in mobile technologies, we will see new mobile app development trends in 2022. Check out our blog to find out.

07 — Contact Us

heading glow
glow

Take the road to {digital transformation} with our top-notch software development services.

map
2 West Canal Bank Road, Lahore ,Pakistan
500 Grant Street, Downtown, Suite 2900,Pittsburgh, PA 15219, USA
3 Dalmeny Ave Huddersfield, Huddersfield, HD4 5NN, UK
DSO-IFZA , IFZA Properties, Dubai Silicon oasis, UAE
Don’t like the forms? Drop us a line via email.
hello@phaedrasolutions.com
no-img
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Pakistan
2 West Canal Bank Road, Lahore ,Pakistan
UK
500 Grant Street, Downtown, Suite 2900, Pittsburgh, PA 15219, USA
dubai
3 Dalmeny Ave Huddersfield, Huddersfield, HD4 5NN, UK
america
DSO-IFZA , IFZA Properties, Dubai Silicon oasis, UAE