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.
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.
Farroghi, Here are a couple of suggestions based on my experience:
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.
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.
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...
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
If you can use PowerPoint and the like you can build a mock or playable demo with fake data even (Balsamiq)
I use things like https://balsamiq.com/products/mockups/ to make demos or even things like https://www.lucidchart.com have prototyping tools for you to mock with.
If you can't figure out Balsamiq there is a course on Udemy that's like $15 on how to do it.
Also, I would have someone do a blind review of your quote.... Here is why...when tech people or their salesman read something they interpret it one way and you may have meant it a completely different way and that will affect cost.
Think about a segmented / staged launch....You could be asking for the sun, moon and stars from the start when just the sun would generate enough revenue to pay for the moon and stars.
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.
There are startups out there that will develop the app for you in exchange for equity. It just has to be a good idea and fit for them.
Sometimes IT quotes are grossly overestimated. I can probably give you much better price.
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)