# The Fastest Way to Raise Funds for Your App Startup

Raising funds for an app startup can be a challenging, yet rewarding process. It requires a lot of hard work and investment along with a compelling pitch and right approach to potential investors. The United States ranks first in the world of startups with 71,153 in 2022. Therefore, it’s important your idea should be unique to stand firm in the competition. Many app startup ideas fail for a number of reasons.

## **Importance of Raising Funds for App Startups**

Raising funds is important for app startups because it provides the necessary resources to bring the app to market. Without sufficient funding, it can be a difficult task to bring your app to market. You might need to hire a talented team, develop new features, and reach a larger audience. With funding, you can:

**Fuel growth and expansion:** With funds, you can expand your app and reach a larger audience.

**Attract talent:** Additional funding will allow you to hire a talented team. Skilled people will help you make your app a successful story.

**Increased marketing efforts:** With funds you can invest in marketing and reach a wider audience. Hence, help yourself to increase user acquisition and growth.

**Develop new features:** With funding, you can develop new features and improve the overall user experience, helping to differentiate your app from the competition.

**Build brand recognition:** By securing investment, you can build brand recognition and establish your app as a leader in its industry.

## **Overview of the Steps Involved in Raising Funds**

The steps involved in raising funds for an app startup typically include:

**Prepare an MVP** or “Minimum Viable Product.” It refers to the minimum set of features and functionalities needed to launch a product, validate its concept, and test the market demand.

**Create a Pitch Deck:** Present your business plan visually, highlighting key points and future growth potential.

**Network and Build Relationships:** Attend events, join networks, and meet with potential investors to get introductions.

**Reach out to Investors:** Identify potential investors, send your pitch deck and business plan, and attend pitch events.

**Negotiate Terms:** Negotiate the amount, equity offered, and timeline for return if an investor is interested.

**Market Research**

To ensure the success and usefulness of your product, it’s important to carry out a market research study first. One way to do this is to utilize platforms that offer paid surveys (OneOpinion) to gather insights from potential users.

**Be Clear With Your Idea**

To create an MVP, you first need to identify the problems faced by your potential customers and determine if your product can provide a solution.

**Define Features**

Before seeking a tech partner, it is important to create a list of features for your future application. Then prioritize the elements that are essential for creating a MVP concept.

**Expertise**

Once you have established your requirements, it is time to find a trustworthy technology partner with proven expertise in the relevant field.

**Development**

Once all the components of your app have been defined, begin with the MVP development. The focus should be on creating high-quality and straightforward software, rather than adding excessive features.

**Creating an Attractive Pitch Deck**

Create a pitch that starts with the introduction of yourself, your team, and the business ideas you are pitching. Clearly articulate the problem your business is solving and why it matters. Explain the product or service, how it solves the problem and what makes it unique. Provide evidence of traction, such as customer testimonials, pilot projects, and early adopters. Analyze the market size and growth potential, as well as the target customer segments. Explain how you plan to generate revenue and become profitable. Provide financial projections, including revenue, expenses, and cash flow.

**Networking and Building Relationships**

Networking and building relationships to raise funds for an app startup refers to the process of connecting and establishing professional relationships with potential investors and other stakeholders in order to secure investment capital. This involves actively seeking out new contacts, nurturing existing relationships, and using these connections to achieve specific goals, such as expanding your network, gaining new business opportunities, and increasing your visibility in the industry.

**Reaching Out to Investors**

The objective of reaching out to investors is to secure investment capital. In order to obtain this you might need to create a quick video showing some real numbers. You might need to hire an intern or maybe a team who can reach out to your target investors on LinkedIn or angel.co.

**Crowdfunding**

Crowdfunding is soliciting small contributions from a large number of people, typically via an online platform such as Kickstarter, Crowdfunder.com, RocketHub, Gofundme, etc. This is an effective alternative to traditional funding options, such as venture capital or bank loans, and can provide startups with access to a large pool of potential investors.

**How Agicent Expertise Assists You for an MVP**

Our company’s expertise assists startups in creating exceptional digital solutions across various industries. Our team is highly experienced in not just making minimum viable products (MVPs), but also helping to grow them into successful ventures. We excel in the early stages of product development, offering CTO services and support in the discovery phase. By utilizing our MVP development service, startups can differentiate themselves from those with just ideas and gain attention from investors with a functioning product.

**Source:** **https://www.agicent.com/blog/how-to-raise-funds-for-app/**