How to Launch & Fund Your Mobile App Startup

Ideal for Raising Funds

Developing an app is a daunting task; it can cost tens of thousands of dollars to bring a wide-ranging app to the market. Once you launch the app, you’re not sure whether it’ll be a success or failure. Moreover, the fact is that you will need money to fund your marketing efforts and engage users to your app.

Raising funds is very important for every startup while making business plans.  App startups go through many funding rounds to maintain progress until profitability is reached. With ever-increasing competition in the market, having a good mobile app idea is not enough.

If you have just an idea for your mobile app and you haven’t made any prototype yet, there are chances that investors might not be interested. Investors get approached by a large number of startup entrepreneurs with different working models. So, if you are approaching investors with just an idea, they don’t really care.

Investors will happily invest only if your idea carries million-dollar importance. They actually want to see what that app idea looks like in reality. Therefore, it’s good to go for MVP development or a prototype to show something to the investors. It will increase the chances of getting funds for your app and this is how your idea will be executed.

“90 percent of startups have failed dramatically not because they were not funded but had bad execution.”-

Therefore, a proper execution is only possible if the idea is extraordinary. In this blog post, we have mentioned some of the ideas that can help investors raise funds for your mobile app development idea. But, before that let’s have a look at a few other things.

Who gets funded?

Investors will probably fund and take a risk on business visionaries that have a background marked by achievement in the industry of establishing and running different other companies. Likewise, they should have strong investor connections developed through years of interaction and engagement.

Why do you need funding?

In the initial days, as an entrepreneur, you should have a clear idea of why your app needs funding? Of course, to get traction or advertise the products or services that you are offering to the people. Your only goal should be to build a mobile app for the people and by the people.

So, how do you go about developing a mobile app that satisfies a genuine need, and have a positive impact on the global arena? That we’ll go to achieve by having investors raising funds for your app.

Best mobile app ideas that help investors to raise funds

Implementation is very important, but every app idea needs to start from somewhere.  Below given are the ideas that will enable you to develop and validate ideas that could turn into a golden ticket.

Start with a real problem

When we discuss the best apps in the market, doesn’t mean we are simply discussing the latest and the noteworthy technologies. One must develop an app that solves customers’ issues and provides user-friendly features.

You may look at the most famous apps in the market today, for example, Uber, WhatsApp, Instagram, Seamless, and see how they directly solve customers’ issues or benefits them with what they might be in need of.

Look at the problems they’re all trying to handle and check whether you could find an alternative or do it better. Consider executing a SWOT analysis to see if there are any loopholes that you could plugin or pain points that you could fix.

Know your competition

Know your competition

Quite obvious that your app idea might fail as there might be any other people around the globe who come up with a similar thought. Maybe there are apps that already exist in the market and offers the best solution to the problem that you are focusing on.

However, you need to be expressive in defining your unique point and differentiate your app from others. Your app must include unique interactive features to engage users getting interested.

Keep in mind that investors not only invest a lot in the idea but in the businessperson as well. So, prove to them that you are better than your competitors.

Pitch is important

When you come in contact with an investor, it’s crucial to understand that there are many other entrepreneurs like you who have approached him to raise app fund. However, it’s important to hone your sales pitch before communicating the app idea to the investors.

Pitch is important

Organize a startup pitch deck, and ensure that you cover all the nuts and bolts of raising funds for a business, including numbers about current development and how you will scale the business.

Build a strong sales pitch by focusing entirely on the things that you need to convey to your target customers.

All you need is to mention three inquiries –

Make it presentable

  • What are your target customers struggling with?
  • What do they want to accomplish?
  • What are the main problems to avoid to achieve goals?

Usually, everything is explained and mentioned in the business plan and pitch deck. When it comes to raising money for your app, it’s important to have a solid plan. This shows the potential of your business and offers a strategic schematic on how you will get there.

And, you just have 15 and 20 minutes to put your plan in front of them. You have to manage your time wisely during the pitch and have the ability to energize financial experts within the given timeframe. Moreover, if you have an MVP app that you can display through the pitch your chances of getting funding for your app increases.

Make it presentable

Domain name and landing page play an important role in improving the credibility of your mobile app. If you have any past experiment in something that may demonstrate your aptitudes and realness, then do use it as your advantage. However, buying a domain name isn’t a daunting task.

A prototype or MVP of your app shows your actuality towards the task. An actual app and client base that proves your hypothesis will truly up your game in the market.

Try till you find the best fit

It is improbable to assume that you will hear ‘yes’ every time. Sometimes the investors will toss off your idea and at times you might have to reject the offer if you don’t get enough value. With every ‘no’ make a note of the simple explanation behind the dismissal.

Possibly, the point of objection raised by an investor might be genuine. You can keep trying your ideas that suit the individual needs. This will help fill the provisions in your plan that could be tricky in future.

Angel or Seed Funding

Angel or Seed Funding

Angel investors are rich business people and organizations who invest in ideas they believe in. They can aid you in raising money to start your mobile app development project. These people can fund your entire project if the plan is explained well to them and it is achievable.

Prior to financing your thought, they might need to know the total amount of cash you will require, your monthly expenditure, your promotion plan, your go-to-market strategy, your business with technical abilities in addition to other things.

However, entrepreneurs need to show a prototype as a proof that they are serious about their development project and should be able to clarify the doubts if questions are asked.

Apart from funding, angel investors can also advise and guide in specific areas of your business. A large number of them can contribute their own cash since they’ve effectively made their fortune somewhere else, and hence, would have the ability to control you along a parallel path to win based on their experiences.

Later on, they can even help engage other investors down the road. If you have legends like Paul Graham, Peter Thiel, and Kevin Rose in your line-up, you most likely wouldn’t have to worry about money for quite a long time.



Bootstrapping is considered as a good option if you have a regular salary, access to savings, and can keep a strict cash flow practices in the earlier stages of improvement. You need to launch an MVP of your app.

Once you build an MVP with your own money, you may get customers and also scale up by reinvesting the profit again into your application. In fact, once you start getting traction, securing a big amount of investment from outside becomes a bit easier.

So, how can you get ready to bootstrap your app? Here are a couple of tips:

  • Reduce personnel costs and start saving months in advance
  • Firstly, do what you can on your own, even if it’s about learning a new skill
  • Use resources that you already have like a home office, your computer, and so on.
  • Be thrifty wherever possible and search for good deals

Participate in app contests

One good way to raise money is to participate in app contests. All you need is to be confident about your mobile app idea. There are many app contests held globally, where great ideas win money in order to fund the development process.

Participate in app contests

Most of the contests are organized by angel funds and business incubators, aiming to motivate developers for building unique apps.

Obviously, these kind of contests are very competitive, and you need to create a strong sales pitch to influence the investors. In the meantime, you should even have an incredible app idea and show how it is foreseen to change lives.

Bank loans

Bank loans

Most banks, as well as financial institutions, offer small business loans to startup business visionaries; though, getting a loan to develop an app out of the blue is still in its early stage.

Well, if you are able to present your bank with a strong business plan along with an effective market research, budget estimations, etc., it might turn out to be an easy task to raise money for your startup’s app. In the meantime, you should even convince them for your business, product and service, and its market.

Your own social network

It is difficult to secure investors as many don’t like to engage outsiders. If you need to get your foot in the door, then get somebody to introduce you. Your family and friends may help you here if they have good links.

Your own social network

Make a practical list of everyone in your family or friends who would believe in your app idea and spend enough money on it. At least you can have them to help you build the initial prototype.

However, it’s a risky way, and you should not depend on it entirely, it is crucial that you need to be clear and genuine with them about the risks of investing.

Best way to convince your friends or family is to take them through your business strategy for success, and if possible, include them at some places. In this way, they won’t even feel special but would also give relaxation in some way than investors.

They would not just feel imperative and think of them as a piece of the task, however, would likewise be pardoning enough than your speculators and blessed messenger reserves.

Credit cards

Credit cards

Last, but not the least, if you start developing your mobile app while you are assessing other options, credit cards can give you that underlying push. Though using a credit card can be a pricey thing to fund the development, yet on the positive side, it can help you to start instantly.

In fact, if you can get your mobile app off the ground through this means, you would then be able to return to different sources to indicate verification of your work and get trust in getting the second round of financing.

4 Platforms to know while getting funds for your app

Platforms to know while getting funds


Kickstarter is one of the biggest crowdfunding platform that supports creativity and uniqueness. Not only do they help in financing your app development project but also provide valuable feedback or guidance in order to make your project a winner.


Indiegogo is a worldwide crowdfunding site that permits funds for entrepreneurs. It works on rewards-based system, which means investors, donors, or clients who are willing help to fund a project.


AppBackr is a platform that connects app developers with buyers, also known as backrs, who are interested in buying wholesale copies of the mobile app. Developers get paid instantly, and buyers get profit once the app is sold in the market.


AppStori is a funding platform that focuses mainly on funding for mobile apps. Developers raise funds, find beta testers, promote their requirements, build an audience, and create a general “Stori”, allowing friends or family, and shoppers to be a part of their team that introduces the app to the market.

A Word of Caution

Do keep in mind, that what works for others may not work for you. Therefore, evaluate your mobile app idea and business objectives carefully before you choose which routes to follow. No one else but you can create the future you need. Whichever way you pick, don’t let rejection get the best of you.

Contact Us

Amit Manchanda

About the Author

Amit Manchanda is working at Net Solutions as Project Lead and has over 9 years of experience in technologies like ASP, Adobe Flex, and Android. He has been part of SME (Subject Matter Expert) Group for RIA applications. He possesses a sound understanding of technical requirement/problem analysis and resolution for providing the best solutions to clients. He is passionate about his work and enjoys interacting with his team. In his leisure time, he loves to listen to music, watch cricket, and play with his daughter.

Leave a Comment

Contact us

Pin It on Pinterest


Join our mailing list to receive alerts on latest insights, updates, and exclusive offers. No spam.