Once you have developed a sound business plan for your app, it’s time to get started with development. For many mobile app startups, the biggest obstacle to developing an app is money.
To fund the beginning stages of your app creation, you need to create a functional product while looking for different types of investors at every level of development.
Where to Seek Funding for Your App
There is a diverse range of funding options for mobile app development. You’ll use different options based on the stage of your app development.
Bootstrapping: Your savings or money from a partner, family, or friends.
Crowdfunding: Money raised from small contributions from many people.
Angel funding/Seed funding: Investment from individuals with a high net-worth who are willing to invest in riskier startups.
Venture capitalists: Private equity investors who look for high risk-high reward investments
How to Fund Each Stage of App Development
Here is a rundown of the different stages of app development, along with the type of funding you should seek.
The brainstorming period of app development needs the least funding. Generating prototypes should be quick and easy.
This stage will help you refine your idea and get as many kinks out as possible before pouring money into the project. Get your idea out of your head and onto something that other people can see.
You should use bootstrapping at this point since these are funds from people who believe in you and your idea while it’s still in its infancy.
Minimum Viable Product (MVP)
A Minimum Viable Product (MVP) is the leanest product you can create with limited resources. It’s an evolution of your prototype, but it’s nowhere close to a finished product.
Think of your MVP as a prototype that you wouldn’t be embarrassed to show to the world. While your prototype can be messy, you want your MVP to draw people in, so you can get feedback from users and attract investors.
Decide which MVP to use based on the bare minimum you need for users to envision your product. Some examples of MVPs for mobile apps are:
• Demo videos
• Incomplete versions of your program
The goal of an MVP is to attract angel investors who are eager to invest in new, innovative ideas. You will also use your MVP for user testing, which will allow you to move to the implantation stage.
Branding your app and creating an investor pitch
Now that you’ve listened to the feedback of your users, refined your product, and found an angel investor, you need to move your focus to establish your brand and writing your 30-seconds-or-less pitch for investors.
Create a look and a voice for your product to make it memorable and professional. You want a “wow” factor and personality to give your app an identity and make it stand out.
Your pitch is the snappiest description of your product possible to hook investors. Aim for two sentences that give the how and why of your app. Publish your pitch on crowdfunding websites, and turn it into a short presentation to get funding from venture capitalists.
We’re Here Every Step of the Way
From prototype to launch, we are here to help with every step of your mobile app development. Contact us today for a free consultation and learn how StackBench can help you become a digital entrepreneur!