Raise Funds for Mobile Apps

How to Raise Funds for a Mobile App Idea

As a company with offices in two of the top U.S. cities for innovation (Boulder, CO and Austin, TX), we are regularly approached by potential clients who believe they have a great idea for an app, but don’t know how to raise funds needed for development. Perhaps you are in a similar situation.

Before we delve into resources they might consider to fund mobile app development, we like to remind them that more often an app idea fails for lack of business value than lack of funds. Rather than begin by developing a “fully featured” app with lots of functionality, we encourage them – and you – to build the simplest product they can and get it into the hands of consumers to prove its worth. Often called the Minimum Viable Product (MVP), the MVP offers the bare bones of functionality – just enough to show the concept, get feedback, and learn if your idea resonates with others.

Starting small not only enables you to refine your idea with limited dollars, it also provides valuable proof of concept to help you convince potential investors your idea is worth supporting.

That said, there are a variety of investment options you can pursue to raise funds for mobile app development. Some are more appropriate early in the process, and others later. Many would argue that entrepreneurs should put off securing funding as long as possible in order to build company value, thereby having a higher valuation before raising capital and diluting equity. Here’s an overview of some of the most common options: Read More

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Book Excerpt: Billing Options When Working with Developers

Development projects are usually completed on either a fixed-price or time-and-materials basis. Additionally, revenue-share options are explored in some partnerships.

Fixed Price

In a fixed-price arrangement, you will receive a bid from your development partner to complete your project. Typically, you agree on the scope and price before work begins. It is an advantage to know up-front what you will pay for the finished product.

There are some downsides, however. Fixed-price projects require more time defining detailed requirements in the discovery phase. To deliver an accurate, reliable, and firm bid, the project scope will need to be nearly ironclad before any work commences.

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