How to Get Your App Funded in 2024 (App Funding Guide)

App funding is challenging but if done in the right manner, it benefits both the parties, the app owner and the investors.

Have you ever heard a conversation that does not have app usage terminology in it? Probably no. Living in the world of digitization it is merely impossible to talk without addressing online payments, shopping, e-bills, and stuff. According to Sensor Tower, the global app revenue reached $50 billion in the first half of 2020 with an increase in CAGR by 23%. This surely states that the users are inclining more and more towards the app world.

Now, obviously, with the increasing users and adopters, there is an increase in online business ideas. Being a newbie, you might think about how will you succeed in the business? Where will you get enough app funding to keep up with your business and expansion? How to draft a business plan like Uber, Spotify, Tinder? Sit back and relax. We are here to answer the burning question of money and where will it flow for your mobile app idea.

Are you having a great app idea?

The one which can probably give a revolutionary change in people’s lifestyles like GrubHub, Bumble, and more?

Are you afraid of the market and the pitching methodology for getting fundings? Don’t worry as we have got you covered. Being in the mobile apps development business over a decade we have come across many apps who were barely able to stand the competition because of their poor ideation and no further business plan for app fundings.

Thus, it is very much necessary for you to think beyond feature curation. App startup investors around the world are no longer ready to invest cash and resources in a project where they have to wait for access or you can also say it as where they do not see any point of profit coming in at regular intervals. So before jumping into the whole app funding idea and financing, let’s just get the possibility into your head and get the basics right.

The very first thing before coming to a conclusion to get funding apps is to ask yourself a certain question. Herein we’ve narrowed down some of them for you.

4 Questions You Need to Ask Before Approaching Someone for Fundings

Questions to Ask Before Approaching App Funding

  1. Who will invest in my mobile app idea?

    You are in a competitive marketing space where every day there are thousands of applications deployed on the app stores. So, before you promise anything on the numbers, without confidence or overconfidence about your idea, study the facts and investments of goliaths like Uber.

    There are two kinds of possibilities you’ll need to consider in mind when it comes to vision, ideas, and potential investors to make a deal.

    Your idea has the power to draw the investors towards the product

    Uber had a unique app development concept at the stage that an individual can book a ride through his smartphone and avoid hailing a ride and mistakes with the wave of his hand. This attracted Silicon Valley to invest cash and resources in Uber by summer 2015, with the fact of total funding of 10 billion dollar. Other app investors that contributed to the deal’s funding for an app were Fidelity Investments, Jeff Bezos of Amazon, Goldman Sachs, Blackrock, Lone Pine Capital, hedge funds as well as private billionaires in fields.

    You go and sell your idea to the investors with utmost faith in your thinking

    Spotify app, the revolution in the music streaming industry is a freemium model that earns money through advertisements and app fundings. But it is still not able to lure venture capitalists (VCs) like Google Ventures because of its biggest competition Apple music (iOS). It is still struggling with its idea and investors’ approach but is stable with the buzz revenue of hundreds of tens of thousands of millions in the form of advertising royalty.

    So, you must understand that your mobile apps have to have a backup in the form of such freemium models and things that can churn some revenue and keep yourself moving till you get big investments for your app development.

    Both of these tactics will bring you, investors, sooner or later with apt funding for your app. But, the crust of this is your “app idea.” Prepare a modular structure choice with all the possibilities of profit-making and growth with or without the investment from the fundraiser, so that you have all the roads that will take you towards the online app fundings success of your business.

  2. Why should one be interested to fund my online business app?

    In this era, everything is about finance and financial stability. There is no barter system running in the economy that balances out the business equations. It is a vicious cycle, wherein a company or person needs a ton of money to get customers but it also needs customers to get money.

    When you decide upon a mobile application idea, then there comes a decision for needs to figure out the sectors or people who might get influenced by the business idea for app fundings. Let’s go step by step with your app idea that will help in knowing the interested angel investors and venture capitalists.

    Step 1. Know Your App’s Niche

    No investor will get you app fundings with an existing idea. Make sure you study your competitors and marketplace to stay in a free of risks environment. Be sure about your offerings, in-app features, UI/UX design and tool. There should be a kind of connection to lure the investors. Ask a question to yourself like which problem and error is solved by my app? What is the unique selling point (USP) of my app? How is my app different from the others in this service genre?

    These are the generalized number of questions asked by many investors and will help you analyze your own thinking for a while. Work on your specifics because investors are not looking for haywire answers. Before getting app fundings, you should know your targeted consumers, what features your app includes, and other small details of your app. So, narrow down your app idea to turn into reality and earn the investor’s assurance and trust in the funded apps rounds service making relationships smooth.

    Step 2. Branding the App

    Branding makes your app realistic. No founders or CEOs will rely only on average words and the place timeline version, so you must create your logo, online domain, and start some online activities. Investors are not your colleagues and friends and family who will hear you blabber the idea and appreciate it. They want proof and an up-and-running plan of action of your mobile app startup.

    If you want to pitch venture capitalists for app fundings, this is a great way or you can say a tool. Make a mockup of the website or app – so that things become easy for the investors, users or for someone who has the potential to visualize your idea, place, understand the minute features and functionalities and eventually help them to put hands-on trust with the consent.

    Step 3. Work on Your Elevator Pitch

    A vision of startup funding for your app and software is critical, so you are supposed to prepare a quick brief about your app idea. Investors do not have a whole day of times to listen to your plan. Prepare a short speech of something less than a minute summing up your whole idea for projects. App fundings pitch should consist of the crux, punch line, problem and limitations elimination, key feature integration, and a vague plan of future goals.

    As examples, imagine an interviewer asking the question in order to describe yourself in three words, you will respond to this as accurately as possible. Same goes with your app size and software, so prepare a gist about things as an “elevator pitch” and get your investors hooked up to it.

    If you are not able to precisely state the nature of your app project then you must go back and do proper research on it for app fundings. Elevator pitch is a small speech that helps you to reach the angel investors list for projects. If you are on that list, the networks of angels are interested in knowing about you and your app products.

    Step 4. Prepare a Pitch Deck

    After your elevator pitch gets selected and is on the list, you need nothing but to start prepping up for a pitch deck. This is similar to a PowerPoint presentation or a slideshow representing some more key factors about your great idea and market research done precisely for mobile app fundings. You are not supposed to put the exact script that you’ll probably use for further meetings with investors.

    This is an ideal chance for you to show some graphs, statistics, and make your online business more viable for investors. They can also have an in-person discussion with you after looking at your presentation which will make it more interactive for both.

    Step 5. Create an MVP

    If you do not want your apps for funding to fail miserably, it is very much necessary for you to make a minimum viable product (MVP) or prototype before launching it full-fledged in the market as well as approaching any angel investors. It will help you in savings of sources and visually help early adopters and users understand the working flow of the mobile app.

    Moreover, it lets you find a road where there are glitches in the early stage of apps in the online world to take you to the next level.

    How to get funding for your app idea?

    Next, if you are wondering about how to get funding for an app idea, consider building partnerships and mentorship with venture capital firms. Further, MVP always helps bring out the best your mobile app has ever had.

    We at Space-O have also made it easy for everyone to understand the mere concept of MVP by just gathering the specifics for you in our blog posts – Minimum Viable Product Definition, Examples, Process and Plan. This will surely help you in knowing and setting your funding goals much better than the other app entrepreneur or app companies.

  3. Have an App Idea and Want to Convert into a Reality?

    Let’s make it successful together. Share your app requirements and validate your app idea from our consultants. Start the journey with us.

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  4. How much money will I actually need to make my app successful?

    This is a burning question before starting any of the above tactics. How much will you quote for your app? For anything that starts with an app funding process to go smooth, you need to have an approximate idea of the apps funding amount you want to meet for the future expansion of your application level.

    If you fund your app with more money, then you are likely to give away your venture capital firms to the investor. And if you quote less amount you will not be able to achieve your goals and will not even be able to bear expenses.

    You have to work hard and figure out the estimated cost of developing a mobile app with specific functionalities and user-friendly navigation. Your app end funding goal is to justify the approximate amount in front of the investor.

    You can also ask yourself a question range like,

    • How much money will I require to create an app or software?
    • How much money will I want to lure the majority of the audience and talent acquisition?
    • How much money will I want to maintain the mobile app once it is deployed on the app store?

    These will push you towards making a couple of decisions for a mobile app development agency and know the exact job costing of iterations in industries. As we know, the maximum app fundings amount will go into making an app and the rest will be settled down among others.

    Even if you’re funding your app through friends and family and even colleagues support, then also you need to have the mere idea of the money.

    Finally, after studying the cost, and figuring out your pitch deck, it’s time for you to think about the available funding options for your application idea.

  5. What are the available funding options?

    1. Seed Funding
      Seed funding or angel investors are very hard to please as they enter at the idea stage of the app. The seed stage does not require much control which allows the company or person to function at its own will. These angel investors just need proper strategies related to income and return on investment (ROI), and one of a kind idea that can revolutionize the existing online world and nothing else in case. So make sure that you have done enough market research to answer each and every question asked by them in a polite tone via email, phone or another communication medium.
    2. Bootstrapping
      This is the most convenient part and easy way of funding for app companies other than seed funding or angel investors because you are your own boss. There is no one to rely on or share your profits-loss with. Bootstrapping role is also easily done with the help of friends and family.

      Initially, if you’re capable enough to fund your own app startups then with such a start you might not even need outside investors in the future when you will raise capital from the online business. But organizations can always go for investment loans and tools that are proportional to burn rate as a backup plan part for funding your app.

    3. Crowdfunding
      With collaborative effort on crowdfunding platform, one can raise funds for its app. There are three types of crowdfunding ways of interest like donation, reward-based, and investment funding. These are done online or through sources of the social media contest, accelerators, or incubators. It can also work as a barter system to restaurant owners and risk cases where you can give a reward or share of the business for expenses. This technique is easy compared to the other app fundings sources.

      In donation, the donor and founder do not expect any reward or benefits in return. While in reward-based tactics, one is bound to provide some perks like a free product, names in the credits, access to the app, and more. Investment funding is one of the chances where the angel investor will invest an amount of resources for the sake of gaining a good return on investment (ROI).

    4. Bank Loans
      This is the most common trend and known investment technique, especially for app funding. The banks lend you the loan on credit and keep your assets on a guarantee for evidence. Plus, these days startups are well supported by the government and banks with a reasonable price of interests, so there are less problems while developing software.

      For example, there are dozens of types of financial institutions, group network aspects or individuals who give you opportunity by offering funds and assets and a loan for the debt to the app startups. Thus, you have a high chance of gaining investment in terms of loan here.

      Now, when you consider a way for fundings for the app and sites like kickstarter, you also need to understand the reason for structured rounds that are heard by professionals. These will majorly help you in funding for your mobile app development.

How to Find Investors For My Mobile App?

How to Find Investors for Mobile App

Many of you, newbies, will be confused about networking of investors and the rounds, so herein we have simplified all aspects of interest that you’ll need to consider on how to find investors for an app.

  1. Seed Round

    This round is at a very early seed stage where your idea is not materialized yet. You have to constantly sell your idea and ask for fundings. Such app fundings are usually used in making MVP, laying a team foundation of app developers, and increasing the traction to see whether they need or support the idea or not.

    This money will give you chances to enter the market at a very small scale but you will get an idea of being rejected or accepted by the online user’s world. Here are some steps which will help you in how to get seed funding for an app startup.

    • Justify your idea, process and rules without any finances of burn rate
    • Approach your potential buyers before meeting the seed stage investor
    • Bootstrap during that time period for email marketing campaign or advice and feedback from beta testers
    • Introduce yourself to investors for app funding with proper data, track record and proof points places
    • Pitch deck that answers a question in a one-on-one interview with speed or even with articulated accelerator programs.
  2. Angle Round

    It is similar to a seed stage but is more formal. In this round outside investors, staff, incubators and accelerators can buy common stock in the company. The only common thing between both rounds of seed stage and angel stage is pitching the idea. Here the investor will be straightforward in tallying their cash and resources for investments and costs with the return on investment (ROI) of your app business.

    Thus, to get app fundings, you will have to win him over the argument and reason as to why your idea is worthy of his investment. In the seed round the investor will not take much charge of the profits and losses but with Angel round, you’ll need to prove every single functionality and the benefit of it to him.

  3. Series A

    If you have reached this far, it means that you have got your clarity of concept and have already been in market contests for a while seeing the success of the product development. You are now at a stage where focusing on product growth matters to you a lot.

    The series A funds help in achieving the scalability of the product pitches and organizing the business optimistically. This round can approximately bring you $2 million to $15 million, and if you get through some typical venture capitalist (VCs) then you might as well be able to bag home a huge amount of venture capital funding.

  4. Series B, C, D

    After series A it is all about expanding your business in a new direction or growing globally, for which you will need bigger investments. Series B round can actually get you an overall investment of a 25million dollars from a potential investor and entrepreneur.

    Followed by Series B other rounds like Series C, D, E, etc. investors usually go for public appearances with your venture capital firms or look for acquisitions in other companies for app fundings, or even expanding their business in new market services.

    If you have got these stages straight into your heads, you’ll be able to crack the mobile apps development funding of 2024 whether you go for series c or b or d. Before ending the article, let’s have a quick look at how to attend the investor meeting so that you avoid any setbacks, woof-ups, or even upsides. It will also help you in the last minute preparations and give you the best results.

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How to Prepare For an Investor Meeting?

How to Prepare for an Investor Meeting

  1. Research your investor: The common mistake done by the mobile app startup is approaching any investor they come across on the ground. This can actually waste your time in the early stage, you need to find a specific angel investor or venture capitalist (VCs) who specializes in your kind of business. Do proper research on them through public crowdfunding platforms like social media, articles, and more. Know their current portfolio and develop an understanding of their investment, brand, investing, success, failure.
  2. Write your elevator pitch and business plan: A gist about your business has to be summarized well. They will look forward to your executive speech which should consist of an understanding of the market size, demographics, your future goals. You must also mention the core value edition of your application in your target audience’s lives (if any) and how it is different from your competitors. Now coming to the business plan, make the potential investor understand several milestones that you are likely to achieve with raising funds. You should portray a realistic return on investment in the meeting with investors for app fundings where he can rely on your facts and figures.
  3. Practice your presentation: To avoid any mishap in the process, it is necessary for the app fundings to practice your presentation on paper as well as the speech following it. A confident presentation makes a lot of difference. Do not exceed it more than 30 minutes, make sure you are not speaking the exact same words written on the slide but actually explaining them through your verbal representation.
  4. Estimate and explain how much money will you need: A man who is investing in your business plan, has all rights to know about the bifurcation of raising money, it might also happen that he can help you save some with his experience. Avoid asking for less money, directly break-down actual costs, and make them understand its vital importance. Projections and shares should be fair for app fundings, and a reasonable split that should favor both the parties equally including your businesses for validation purposes.
  5. Take a Q&A round with the audience: When you are done with an exchange of presentation, story or speech, open yourself to a number of questions from their side. So, you can resolve any confusion or query right at the moment. It will also allow investors to pass suggestions, feedback, information, projections, reviews, guidance or advice on the revenue category for app fundings which you should take in a positive way and improve your product opportunities accordingly.

FAQ About Mobile App Funding

  1. How do mobile apps get funding?

    • Crowdfunding
    • Donations
    • Funding contests and app contests
    • Bootstrapping
    • Strategic business partners and Angel investor
    • Bank Loans
  2. How to find investors for mobile app?

    There are two successful tactics that will help you in the course to find a suitable investor. One is the websites like, Angel Investment Network, and more. Also, there are special meets for entrepreneurs and seed investors to discuss a way to get app funding options and revenue. It is kind of setting a nationwide app startup funding stage or startup capital, that you can also attend with your startup app product ideas and goal.

  3. What are the funding rounds?

    Once you have decided on the idea based on the product-market fit of your app or a site, you have to get ready to meet your startup funding sources – the potential investors. There are also several self-funding rounds that have different importance for startups depending on the app ideas.

    With each of the rounds – the CEO, founders, entrepreneurs, and developers will come across vivid investors with different requirements and skill sets that he might be looking for in you and your product. Here are the rounds:

    • Seed round
    • Angel round
    • Series A
    • Series B, C, D, etc.
  4. How many users do you need to get funding?

    If you’re aiming for $1m-$10m than you must have a minimum of 1,00,000 users. This will help you in finding appropriate investors and they will be equally interested to know about your online brand. Thus, you have to justify your fundings with the engagement in your application.

  5. How do you start an app with no money?

    • Outsource your app development project
    • Generating revenue for your venture capital
    • Pitch your app developer with an equity split
    • Make your proof-of-concept
    • App contests and funding contests



There is always room for improvement.

This saying goes apt with the apps. Once you fund your app, your work does not end there. You’ll have to strive for better and launch new features, functionalities to maintain the engagement and grow for better investment and app funding options.

Of course, for this, the pre-requirement that you’ll need is an experienced app development company like us.We offer full-fledged services from native app development to custom software solution development.

If you have any query or confusion regarding funding app, venture capital, crowdfunding platforms, funding campaign, app development costs, you can discuss it with us. Let us know your requirement through our contact us. The consultation is absolutely free.

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Rakesh Patel

Written by

Rakesh Patel is the Founder and CEO of Space-O Technologies (Canada). He has 28 years of IT experience in business strategies, operations & information technology. He has expertise in various aspects of business like project planning, sales, and marketing, and has successfully defined flawless business models for the clients. A techie by mind and a writer at heart, he has authored two books – Enterprise Mobility: Strategy & Solutions and A Guide To Open311

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