In today's fast-paced app startup landscape, founders need to be more strategic than ever when it comes to fundraising. With evolving investor expectations, the rise of alternative funding options, and economic fluctuations shaping decision-making, it's crucial to adopt a lean and agile approach to your fundraising in 2026.
The Shift to Agile Funding
Based on our data at SeedLegals, we can see that the shift to more flexible ways of raising capital continues to gain popularity. Using agile funding tools, companies are raising in faster, smaller rounds to extend their runway and fund the work needed to hit key milestones. This approach allows founders to take control of their fundraising journey and make informed decisions about when and how they raise capital.
Top 3 Agile Funding Strategies for Your App Startup
1. SeedFAST: The New Seed Round
SeedFAST is a type of Advance Subscription Agreement (ASA) that enables you to raise money before your traditional funding round. This approach allows you to take in cash quicker, when you need it, without going through the time-consuming and often inflexible process of a priced equity round.
2. SeedNOTE: Convertible Loan Notes for Your App Startup
SeedNOTE is a type of convertible loan note that gives investors debt in your company. This debt will then be converted into shares at the next funding round, providing an added layer of protection for investors and giving you more flexibility when it comes to raising capital.
3. Instant Investment: Top Up Your Round and Add New Investors Anytime
Instant Investment is a legal agreement that allows you to top up a previous round and add new investors anytime. This approach enables you to raise small amounts as and when you need them, based on your last valuation, without having to go through the hassle of a full funding round.
The Benefits of Agile Funding
By adopting an agile funding strategy, you can:
- Get the cash you need instantly
- Skip the valuation and wait until you can raise at a higher valuation
- Buy yourself time before your next funding round
Tips for a Successful Agile Funding Strategy
When using SeedFASTs or Instant Investments, remember to:
- Set a longstop date (six months or less from the date of signature) to qualify for SEIS or EIS
- Choose a longstop valuation that reflects your company's true value
- Use SeedLegals to convert a SeedFAST into shares using something called Instant Conversion
By adopting an agile funding strategy and leveraging these tips, you can revolutionize your app startup ideas and take control of your fundraising journey in 2026.