The mobile app market has expanded significantly over the past few years. The main reason is that mobile devices have become predominant in our everyday lives and there's a high demand for new features that will make those devices more useful than they already are. Aside from growing exponentially, the mobile app market has become quite competitive as well.
Consumers want good-quality apps that are meaningful and functional, but such apps cost a lot of money to develop. That's why it's oftentimes quite a struggle for independent developers to acquire such funds. Fortunately, even if you lack the proper initial capital, there are still ways you can raise enough funds to properly develop your app and ensure its success in a crowded market. With that in mind, here are a few ways to raise funds for your mobile app.
Angel investors
The most effective way to raise enough funds to develop a mobile app is to secure the support of an angel investor. Unfortunately, that's easier said than done. Angel investors can provide you with enough funds to finish your project but they expect at least a 25% return on investment (ROI).
The trick is in securing their support, to begin with. Investors won't give money to just anyone. You have to prove that your app will be successful and that your profit margin will be exceptional before investors will even begin to consider whether to support you or not.
Bank loans
Whenever someone thinks of raising funds, going to the bank is the first thing that comes to mind. Banks are a reliable source of funds but only if you get the right deal out of it. In other words, you need proper payoff conditions and a suitable interest rate so that a bank loan will actually work in your favor. However, banks tend to be picky when lending money.
As an example, if your credit score is bad, you might get denied for a loan altogether or be charged with very high interest rates. In that case, you should consider opting for easy loans from alternative lenders. That way, you won't have to worry about some random factor affecting your loan and you won't have to wait to get approved as nearly as long as you would wait in a bank.
Crowdfunding
One of the best and probably the most reliable ways to raise funds for mobile app development is crowdfunding. Crowdfunding is a fairly new concept that quickly became very popular and widely spread. The way it works is that you get in touch with your target audience and encourage them to financially support your project over online platforms, such as Kickstarter, Indiegogo, GoFundMe and others.
In return for audience support, you provide them with special features, early access, royalties and other benefits. It's a good way to not just raise funds but also build a bit of awareness and visibility for your mobile app, even before it's actually created. Simply put, if you pitch your idea to consumers the right way, they might be willing to financially support your endeavor.
Bootstrapping
A lot of developers don't want to bother with pitching ideas to investors or applying for bank loans. Instead, they opt for the bootstrapping method. In other words, developers raise funds by tapping into their own personal savings accounts and use their own credit to fund their projects. The main advantage is that your project is 100% self-funded and you get to keep full ownership and equity of your mobile app. On the other hand, bootstrapping can be quite daunting, because it requires a lot of control and financial discipline.
Raising funds for mobile app development can be a challenging task, especially if you don't have the budget to see the project through completely. However, that's no reason to despair because there are various opportunities to raise funds available to you and you just have to pick the one that suits you the most.