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How to Raise Money for Mobile App Startup in 2020?

Mobile App Startup

Mobile app startup is a creative process of transforming ideas into a workable and usable software, apps that can be adapted to do various or specific task. It’s the actual turning of ideas of practical function apps to perform a range of functions.

With advent of COVID-19 there is seemingly (or so it may seem) of a thaw in the app creative process. Yet more than ever before apps are high demand and more so apps that can help solve critical human needs and challenges. Mating the app is one challenge in itself and raising funds to transform it into an actionable idea is another.

Raise Money for Mobile App Startup in 2020

So, for a Mobile App Development Company with all negativity and recession in business because of prolonged quarantine and lockdown periods what canitdo raise money for a mobile app startup in 2020? These are some common market and private strategies to get money for that app startup running.


Crowdfunding is perhaps one of the most common ways to raise funds for an app startup. Crowdfunding simply means a group of investors fascinated by the app agree to back up or support its transformation into a full blown app or software. Crowdfunding the app is going to many investors at the same time and pitching the idea and every one of them agree or offer in principle a certain amount of money via the internet or social media platforms.

Many crowdfunding sites help innovators pitch ideas and apps to the right interested investors both single and institutional. These funds come in various ways like a donation, funds traded for rewards or shares in the business venture.

Business Bank Loans

Loans have been, still are and will always be a source for innovative app startup funding. Though winning the confidence and trust of most lenders largely depends on how practical and actionable the app ideas are. Loans for small scale, medium and large scale businesses are easily funded as the business is stated and security is derived or given.

This means the easiest way to gaining business bank loans is placing property as loan guarantee. Banks and financial institutions demand assets as loan guarantee to be able to raise app startup money. Besides, government supportive measures such as startup financial aid in the form of low-interest rates, investor tax benefits, etc.

Venture Capital Firms

Venture capital investments constitute a large chunk of how to raise app startup money. Venture capitalists are always looking for fresh, promising and actionable ideas that will be money spinners. It’s all about multiplying their investments.

Although high risk financing is involved venture capital also plays key to ensure the investments work out well and the project or app startup is a success at all costs. The catch usually is venture capital firms may demand for equity in exchange for funds especially if the app startup has promise of success.

Best App Contest

App startups may be tested on a variety of parameters especially at tech summits or tech contests. Tech and innovation app contests from various companies, institutions, angel investor’s and many other investment platforms.

This is not only just to motivate but also discover actionable app ideas that can be fully funded for the entire app software development process. Winning ideas get fast access for full app startup funding. As seen from this experience app startup funding is has a multidimensional approach.

Angel Investors

What are angel investors and how do they help app startups get required financial resources? Angel investors are high-net-worth individuals with excess capital to invest in different business opportunities. They invest capital with less control traded for the capital infused, unlike venture capitalist investment.

Business Partnerships

For long business partnerships have easily aided app startups in many ways. With huge customer base, innovation chance and adoption new technology to accomplish tasks. Business partnerships help promote the app on an extensive scale to other businesses customers.

This makes the app instantly reach a wider audience with immense investment opportunities or market. Though, business partnerships have to be negotiated clearly and everything signed in legally binding clauses to safeguard both parties in case of future complications. This is essential in all business partnerships.

Bootstrap Funding

Bootstrap is initially funding the app startup and later seeking investments into the business. The initial stage avails innumerable advantages like absolute control on the business, administrative direction, planning and execution, finance and expenditure monitoring etc. This guarantees proper investment fund flow practice early in the app startup development. Bootstrap funding is a strict regimen that needs strict funds monitoring initially.

Business Grants

Business grants for small and medium scale startups are still very much plausible investments route. Well-planned apps cross-sectorial business interest including government funding. With several small and medium business grants available, app startups especially having a social impact may find easier access to funds.

Grants are usually given free as a motivating endorsement of the app idea. Grants though require a demonstration proving the apps claim is a true game-changer in any social cause aspiration.


Like any innovation prepared by any Mobile App Development Company with painstaking attention to detail funding mobile app startups can be quite a challenge. However with right combination of strategy and technical planning mobile app startup funding can also be achieved with ease and fascinating success.

Author Name: Vanessa Chole

I have been working with VertexPlus Technologies in Canada location from the past 3 Years with an amazing job experience of mobile app development, where I keen to get lots of opportunities to serve clients while working for multiple industries worldwide.

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