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1. Get Funds For App Development As A Tech
Startup And Give Wings To Your Dreams

2. For startups of mobile apps, funds can be a real challenge. If you, too, are
thinking of building a high-tech software product, do consider funding at
the very beginning with a proper analysis of the pro and cons associated.
In this article, we will discuss how fund generation happens for On-
Demand Fintech App Development process. What all you need to know
and the most famous business finance sources. An idea of what venture
capital firms are and who are angel investors.

3. How to get funding for an app?
First things first, no one just comes from anywhere and gets due of money.
There is a stepwise process that everyone has to follow for their idea to
deserve an investment. The funding is amount should be enough to finance
the growth of the startup and can take a period of 3 months to one year.

4. Let us go through the different stages of fundraising for
the startups.
1. Pre-seed stage
At this stage, the founders of the startups try executing the idea financed by
their own money. Here are different ways for startups to get funding for app
development.
1. Looking for a genuine co-founder for launching the startup.
2. Starting a crowdfunding drive.
3. Raising funds through a personal website.
4. Being a part of the funding contests.
5. Focusing on angel investing from the very beginning.

5. 2. Seed Stage
This stage involves attracting angel investors for mobile app seed funding
for the startup. The investment required for the startup is a modest
amount that shall cover the plan of the business, team’s salaries, rent,
production cost, etc.

6. 3. Series A
It aims at attracting third-party investors for the further growth of the
business. This is the stage of the business in which you are making money
from the business and have a business model and an adequate client base
for running the business.

7. 4. Series B
At Series B, businesses and startups scale up and are turning into
enterprises. Moreover, Business viability is about focusing on the
business that is now entering into new markets.

8. 5. Series C
This business stage is very demanding, and considerable results
expectations are from you at this stage. Now the business has
reached the $100+ million mark. Now you are on a hunt for
equivalent funding for the business.

9. 6. Initial Public Offering (IPO)
This is the final stop to the existence of the startup. It is basically about the
sale of a private company’s share to the public. IPO provides great funding
opportunities with transparency.
Fundraising for startups requires time and a contemplative business
strategy.

10. Funding Sources for Tech Startups
The primary sources or app funding companies for a tech startup are
as follows.

11. 1. Crowdfunding
In this fund generation process, funds generation is by pre-ordering the digital
product before the development of the product. After the required funds’
generation happens now, you can start the Finance App Development
process. This method has the setback of stealing ideas before their execution
in the market. But still, it makes a great way for the fast launch of the startup.

12. 2. Business Incubators
These are the organizations that mentor the early-stage development of the
startup. These organizations provide the seed capital, organize lectures, share
insights, organize business meetings with the owners of the startups.

13. 3. Bank Loans
Bank loans help startups with short-term financing. Business loans are
sources from various financial institutions that help businesses gain
complete control over the business. But it can get hectic as a lot of
documentation goes behind the procedure of a business loan approval.

14. 4. Venture Capital
It is a business investment type in which different organization groups
collectively invest their money in various projects with the help of a venture
capitalist. VCs invested their money in startups with a great and functional
plan and aimed towards profit generation.

15. 5. Angel Investors
These are individual groups that distribute funds to different startup groups,
even the risky ones. They study the risk factor of the business and guide them
accordingly. These study on various factors like the market needs, team
associated with the business, initial clients of the business.

16. Before coordinating the angel investors, make sure you are very well prepared
with a business plan, professional-level presentation, and an answer to why
the investment should be in your startup beforehand.
Among all the above-discussed different financial sources for your business,
the most demanded are venture capital and angel investing. Let us gain a
detailed understanding of these two financing sources in detail below.
Relate: A Smart Investor’s Guide: What Are The Best Investing Apps of
2021?

17. Venture Capital as a primary source of funding for
startups
As we have already got a brief on who a venture capitalist is and helps
startups that have some potential to reshape their market and can grow
rapidly. The investment made by a VC on startup comes from different
sources like millennials, institutional investors, insurance companies,
corporations. In a VC firm, there is a partnership in which a certain group
of individuals or organizations decide whether a startup needs financing
or not.

18. The money lent by a VC is short-term money. The idea of finance by a VC is
to help you scale your startup and earn huge profit margins. However, the
downside for the owners of startups herein is that while getting funding
from a VC firm, it gets participation in decision making along with the share
of the equity.

19. Benefits a startup can get while getting funds by a
venture capital
● Experience and expertise of VCs help in facing business challenges.
● Expansion of business network.
● Improvement in public reputation of the startup.
● Risk management.

20. Angel Investors and their role in helping startups
An Angel Investor is an individual who willingly funds your startup. These
investors do finance in groups also and are a great help to fund your
startup in the initial stage of the business.
Moreover, venture capital and angel investor are the two very popular
financing sources. Both help startups execute their innovative ideas and
deal specifically with technology companies.

21. Differences between venture capital and angel investors
1. Investment amount
The amount invested by venture capital in a startup is in millions, but angel
investors can’t invest this big sum.
2. Returns on Investment
Venture capital’s engagement in the startup a lot, so expect higher returns, but
angel investors are not engaged solely, so there is less return on investment.

22. 3. Role in the business
Both the investors have equities in the startup so that they get higher returns
on the investment. But comparatively, angel investors demand total control
over a business. VCs just demand a seat in the Board of Directors.
4. Motivation
Angel investors are more personally involved, are willing to invest even in risky
projects just by seeing the potential of the business. Venture capitalists study
every aspect of the business they are planning to spend their money on. They
prefer spending on stable projects ahead of the competitive market.

23. Why do tech startups need investments?
There are various factors to why startups need mobile app funding and
investments, which are as follows:
● Market Research.
● Analysis of customer issues.
● Defining the features of your tech product.
● Hire a team.
● Software development process.
● Feedback.

24. How one can calculate the investment cost of a startup?
Pre-planning and considering various budget factors is essential to represent
the rough investment costs to your investments. This way, both investors for
app development and you will have an estimate of the cost of your project.
Tips on the calculation of the budget of a startup are as follows:
● Select the platform on which you are planning to launch your app.
● Estimate the features of your app.
● Have clarity of revenue goals and your profit margin.
● Hire the best team for efficient and profitable business results.
In conclusion, these are all the tips and tricks on how a tech startup can get
funding for the mobile app development process.

25. Web & Mobile App Development Company
https://concettolabs.com

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