Better App Ideas Can Get Funded Easily

4 Mins read

You may know how funding works but may not know how to fund your app. However, right at the outset you should know that anything and everything commercial can be funded today through diverse channels.

If you are into mobile app development business and looking to fund it then all you need to do is have a great app idea. Once you have it designed you can submit it directly to the funding company that will run a series of tests and reviews on it. The company will look into several aspects during the testing and reviewing process that will include:

  • The design
  • The development
  • The deployment as well as 
  • The marketing of the App.

Sometimes, the companies working with you will even share the profits with you.

There are lots of prospects in this field especially given the fact that different types of mobile devices, Apple iPad, and the Apple Watch has transformed the app market. Modern apps have also changed the way in which the consumers live their lives. It is for all these factors and the extensive use of the mobile devices that warrants for creating an entire new category of mobile apps and tools, especially for the smartphone users as well as the small businessowners all over the world.

The Primary Focus

Different online funding sources such as and others look to put in their money along with the investors on small businesses that have considerable if not huge prospects. They are on the lookout for creative and brilliant entrepreneurs all around the world who need aproper and clear access to capital for different stages and requirements of their business such as:

  • The seed development stage
  • The proof of concept stage
  • The deployment stage as well as for 
  • The marketing stage of their appideas.

In order to make sure that you tap the right person to fund your mobile app development company business you will need to focus on a few particular areas apart from having a revolutionary app idea. You must be focused around:

  • Providing dynamic B2B as well as B2C solutions through your app for different enterprises and small business 
  • Provide collaborative entertainment consumption
  • Us platforms for unique streaming and over the top or OTT content distribution
  • Use social networking along with GPS Location Services that involves different aspects such as dating, connections, shopping and shared experiences
  • Artificial Intelligence and Machine Learning
  • Augmented Reality and Virtual Reality
  • Payment integrations that includes Peer to Peer as well as Bitcoin and similar other cryptocurrencies
  • Design Watch kit apps for Apple Watch and different other wearable devices and 
  • Design apps for everyday use in the house, office and even in the car.

In short you will need to develop apps that will make the everyday life of the user easy as well as help any business that uses it to grow. You will be able to get some priority when it comes to funding your app business if you app ideas revolve around targeting the following:

  • The early adopters
  • The urban dwellers
  • The users within the age group of 15 to 40 years and 
  • The people with higher income.

It is also required that you incorporate several other capabilities in your app such as:

  • Live streaming of video
  • Audio
  • Gaming
  • Interactivity
  • Payments
  • Features that is unique to the smartphones and iPads and Smartphones
  • Have a long shelf life and 
  • Have a huge prospect to become a ‘hit.’

Provided you have all these in you as well as in your app then you can manage to get funds anywhere ranging from as little as $5K to get your idea started and up to $1M for a complete scale designing, development, distribution, and marketing of your app.

Types of Apps

Well, when it comes to funding mobile apps, there are three primary types of apps that are most likely to get funded easily. This is because all apps are not created equal and almost all companies now are some sort of technical in nature, you will need to develop apps that are specific inside the software category. The most funded and hottest app industries happen to be:

  • Fintech: In 2018, Fintech funding created a new record at $41.7 billion made across 788 deals, according to a research. This shows that the confidence in the market overall is very high though there has been a downward trend noticed in the deal count.
  • Blockchain: As you may know recently there was a Bitcoin crash but in spite of that in the world of finance politics and real estate, cryptocurrency still play a very significant role making it a valid business app. There are several app builders in this specific category that are still managing to get considerable investments in spite of the decline in the consumer interest.
  • Cybersecurity: This is another area that is growing importance and concern with each passing day, if not hour since the past decade. It is for this reason that service solutions and software that deals with cyber security receive noteworthy amounts of funding. A 2013 research showed that VC investment in cybersecurity startups increased by 300% up to $5.7 billion!

Therefore, make sure you move around these industries and draw up your term sheet accordingly. 

The Term Sheet

Lastly, make sure you draft the term sheet carefully to protect your interests. A term sheet is a legal document that is exchanged between the investor and the startup. It details all the legal terms and intricacies of the investment made along with the responsibilities and duties of each party involved in such investments.

Ideally the agreement should cover important aspects including:

  • The type of shares
  • The option pool
  • The valuation
  • The milestones
  • The dividends
  • The reinvestment clause
  • The payment clause
  • The liquidation benefits and 
  • The founder shares.

Take care of two things: accept enough money but do not give up too much equity. It is best to take the help of a lawyer for that matter or a good accelerator who is familiar with investment laws and will help you through this.