Angel List · App development

Can you get Funding for an app idea?

Farroghi Realestate The Best Ideas are the Simplist

February 15th, 2017

I got a quote from a local app development company and the first stage of UI and prototyping will costs 8-12k for basically a blueprint. Then it will cost 150k-250k to develop the idea. I have done the market research and know paying customers. I'm just a sales guy but determined to get this product to market.

Amitesh Mishra Founder & CEO - TAS (sociota.net, shabdanagari.in)

February 15th, 2017

It depends. Usually the funding takes time and it's not a wise idea to depend on only funding for taking your product live. What if it doesn't come? You should look at alternative ways to bootstrap till that time.

Conor O'Nolan Business Manager / Developer of mobile apps

February 15th, 2017

You should look into a minimum product at much lower cost (150k+ is seriously high). I suspect you have a lot of backend development at that price.

You should get some sort of prototype from 5 days work. Then you can validate by showing to customers. Then maybe someone will fund next stage.

Ish Singh

February 15th, 2017

Farroghi, Here are a couple of suggestions based on my experience:

  1. There is no need to spend any money on building a blue print or prototype. There are sufficient ways available online to make a visual wireframe and/or prototype.
  2. The most important thing you can do is to talk to potential customers, and make sure there is sufficient market/demand for your idea. Highly recommend doing this before you spend a dime or time on developing anything. Many times the potential users will tell you things that will either change your idea completely or you will need to discard it completely or modify it to meet the demand. So make sure you have a clear picture of what customers will pay for before building it.
  3. Startups/development is an ongoing process, one time costs are not an accurate way to plan your startup. There is maintenance, bug fixes, technology upgrades and new features that come up all the time, so plan for those as well.

I would suggest narrowing down your concept to a MVP (minimum viable product), and invest a little bit of money to get it built and see how users respond before spending time on investors.


Cheers,

Ish

Theodore Caravellas

February 16th, 2017

As previously mentioned, you only need a mockup/wireframe to talk to an investor (angel). Actual product is not a requirement to get funded but team is. The investor will check if you have a good team that will take the idea and make it a killer product.


As Ish previously mentioned, building an startup is an ongoing process, especially technical one. A tech co-founder is the best investment you can do if you want to move forward...


Good luck!


Paul Haris Business Development manager at mindinvetory

February 18th, 2017

Wouldn’t it be a lot easier if there was a secret formula to get money for your app startup? Unfortunately, raising approximately $1 million for your mobile application startup isn’t a child’s play, more so if you haven’t proved that customers desire your product.


But then of course, it is a part of every startup journey, right?Many entrepreneurs assume that investors would be interested to spend in their mobile application right at the idea stage.


However, they fail to understand that even a great app idea cannot intrigue investors unless it is validated that customers want your product.


And when you are able to prove how you plan the execution, you gain a better chance of raising funds for your app startup business.Here 6 Easy Steps to Get Funding for Your App Startup



James Wilkoszewski Executive Director at JV Corporate Pte Ltd

February 18th, 2017

I agree with Conor. You need to source more realistic quotes keeping in mind what you need it to do. The last app we did cost me a fraction on what you have budgeted but to get back to your question of can you get funding for an idea? Yes and no. Normally you need to get an interactive mock up done at a minimum before you will be able to generate interest leaving you with only one source of PE available (Friends, Family and Fools) All of which come with its own type of issues. Ask yourself who do want to allow to be a shareholder? As a start up it matters as they will have a certain degree of control.


Allow me to add a year ago many investors were throwing money at tech ideas.Now pre-revenue company's are finding it hard to raise capital if there is no near sign of a revenue stream. I realize you are eager to get to the market but I'd you need to be aware of the dangers of just getting the money through the door from anyone. I am sure that your question will be a nonissue once you have the development costs down where they should be.

Milan Lesichkov Lead Software Developer

February 16th, 2017

Sometimes IT quotes are grossly overestimated. I can probably give you much better price.

kraig Web App Tech Dev,desperate to brexit

Last updated on February 17th, 2017

That's ridiculous. I can't believe $43k isn't enough to develop a MVP. (I'm assuming you don't care what coding languages/framework/back-end/front-end/OS mashup the dev uses, as long as it works.) I'm also assuming that your happy to negotiate on the MVP functionality, prepared to work remotely)

Jacob Judah innovative iOS developer

February 18th, 2017

ideas mean nothing. Don't just hit up 1 agency, do your research. I recommend starting with finding/ interviewing freelancers.

you have a long way to go my friend, good luck

Fahad Uddin Computer systems engineer and investor

February 20th, 2017

You can bootstrap it and outsource development to Pakistan.