Tips to Find a Source to Fund Your App Development Project

Developing a mobile app is in itself a complex process, involving several steps and stages of development, testing, and app deployment. This process is not only arduous and tedious but can also prove to be very expensive for app developers – especially so, if they are not already established names in the market. Developers who can successfully find funding for their project are at an immense advantage, as it lets them work with a free mind, without having to worry about the expenses they would have to incur on their app.

In this article, we bring you some useful tips to help you find a source to fund your app development project.

Find a Business Partner

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One of the best ways to get your app funded is to find a business partner willing to take care of your project expenses. A sleeping partner would not play an active role at any stage in the process but would be able to support you by supplying the capital required to complete your mission.

Before making a final decision on your dormant partner, you will have to first make sure that they are legitimate and will supply the goods that they claim they would. You would then have to ascertain if they are right for your business and would fit in into your scheme of things. Also ensure that both you and your partner are clear about the terms and conditions, the amount of investment they would have to make in your business, the profit-sharing percentage and so on.

Tie Up With Angel Investors

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Angel investors are typically affluent business individuals or establishments who are willing to fund start-up projects, in exchange for ownership equity or convertible debt in the future. While many such companies would be willing to fund your entire project, you will have to clearly negotiate all the terms and conditions with them, also drawing out a detailed business plan, so as to ensure that the deal can be carried through in a smooth and trouble-free manner.

Needless to say, finding the right angel investor or network is not easy and you would have to be prepared to face rejection more than once. However, once you succeed in finding your investor, you need not worry about your financial restrictions anymore.

Apply for a Bank Loan

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Yet another way to secure funds is to approach a bank and apply for a loan. Most banks are willing to offer loans with reasonable rates of interest. Of course, you will have to put forward your proposal, stating the reasons why you want the loan, also sketching out a detailed plan of your task at hand.

You will have no issues to get your loan appeal sanctioned once the concerned bank understands that you are serious about your project and that they would get a good return for investing in you and your ambitions

Network With Colleagues

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Many app developers today seriously consider buddy funding, that is, asking colleagues or other fellow developers to fund their project or a part of the project, in return for a certain share in the profits. Forming a network of developers willing to invest in your assignment helps you raise the required money for financing your app expenses.

This also benefits all members of the network as they get to enjoy a percentage of the profits accrued from the sales of the app. Needless to say; your app needs to be successful in the app market in order for you to make enough money from the same.

Try Crowdfunding

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Crowdfunding is one of the latest and most effective methods of finding sources to fund any venture. Here, you make a request to the general public to make a small investment in you. The ones that invest in your project get to enjoy a share of your profits.

While you can find many more investors by way of crowdfunding, the disadvantage for you is that you would have to unveil your plans to a vast section of the society, without having the security of signing an NDA or non-disclosure agreement of any kind. This could make you vulnerable to plagiarism and result in someone else taking the credit for your ideas. Considering this aspect, it would be better for you to approach a private investor instead.

No matter which method you select to fund your app development project, make sure that you are on the right track and have chosen the proper source to fund your financial requirements. Wish you all the best in your new venture!