Are you stuck in the early stages of your app startup idea, wondering how to secure funding and bring your concept to life? You're not alone. Many innovative ideas remain unrealized due to a lack of capital or guidance on where to find investors. This article is designed to help you overcome these challenges by providing valuable insights into app funding, 6-step process to get investors on board, and 7 proven options for securing the necessary funds.

App Funding: Statistical Insights

As we navigate the digital age, it's no surprise that apps have become an integral part of our daily lives. The pandemic has accelerated this trend, with people relying more heavily than ever on mobile applications to stay connected, productive, and entertained. According to Apptica Intelligence, categories like "Business" and "Education" experienced significant growth (109.6% and 68.1%, respectively), driven by the need for remote work solutions and professional development tools.

Type of App Ideas that Get Funding in 2020

The past year has seen a surge in demand for innovative app ideas, particularly in areas like blockchain, fintech, health tech, and cybersecurity. These emerging technologies offer unique opportunities for entrepreneurs to create groundbreaking applications that can attract investors. For instance, blockchain-based apps provide secure, trustworthy, and cost-effective solutions, making them appealing to industries such as healthcare and finance.

How to Get Investors for an App: 6-Step Process

Securing funding for your app startup requires more than just a great idea. You need to be prepared to present your concept in a compelling way that resonates with potential investors. Here's a 6-step process to help you achieve this:

  1. Develop an MVP: Create a minimum viable product (MVP) to give investors a tangible understanding of your app's value proposition.
  2. Get to Your Early Adopters: Identify and engage with early adopters who can provide valuable feedback and support for your application.
  3. Establish a Brand: Develop a strong brand identity that sets your app apart from the competition, highlighting its unique features and benefits.
  4. Create a List of Potential Investors: Build a list of potential investors within your network, including family, friends, ex-colleagues, and acquaintances who may be interested in supporting your startup.
  5. Prepare the Elevator Pitch: Craft a 30-second-or-less presentation that effectively communicates your app's value proposition to potential investors.
  6. Present Deck to Investors: Prepare a pitch deck that provides a comprehensive overview of your app, including market statistics, forecasts, and industry conditions.

7 Proven Options for App Funding

Now that you're prepared to present your app startup idea, it's time to explore proven options for securing the necessary funds. Here are seven ways to find investors:

  1. Start Your Business with Co-founders: Partner with co-founders who share your vision and can contribute to funding your app.
  2. Crowdfunding: Leverage platforms like Kickstarter or Indiegogo to raise funds from a large number of people, typically in exchange for rewards or equity.
  3. Angel Investors: Network with angel investors who invest their personal funds in startups in exchange for equity.
  4. Venture Capital Firms: Approach venture capital firms that specialize in funding app startups and have the resources to support your project.
  5. Incubators and Accelerators: Join incubators or accelerators that provide funding, mentorship, and resources to help you grow your app startup.
  6. Government Grants: Explore government grants and programs that offer funding for innovative projects like yours.
  7. Private Investors: Network with private investors who have a passion for supporting startups in the app development space.

By following these steps and exploring these funding options, you'll be well on your way to turning your app startup idea into a reality.