"ClassPass Raises $285 Million to Accelerate International Growth and Scale Corporate Program.” Headlines like this aren’t uncommon when it comes to big fish in the tech pond. "How the heck does one raise $285 million!?” “Is that what creating a successful app takes??” *throws in towel* ⚰️ Before you decide to shelf your app idea and open a bakery instead because bread is cheaper to get rolling on *pun intended*, here’s the tea on funding your app idea…
To pitch-deck or not to pitch-deck?
Answering 3 simple questions (honestly) is your north star.
1. Define the ultimate goal behind your app.
Are you trying to create something that’ll afford you an extra vacation or two per year or something that’ll buy you a private island one day? What are your financial goals? (Really.) Be honest with yourself on this one and come up with an actual dollar goal amount.
And no, “I want a million dollars” doesn’t qualify.
2. How big is your idea?
Are you trying to create a horoscope app or the next Uber? While small apps with few basic features could cost between $10,000 and $50,000 and are more self-funding friendly, a more complex app can run up to $500,000 in development costs.
3. How quickly do you want to grow and how much profit are you looking to generate?
If you’re looking for a little extra cash at a leisurely pace and your app is more of a fun side project, you can definitely get away with self-funding and taking your time. If you’re looking to build something sellable within 5 years, you’ll probably need to raise some money to start unless you’ve got a technically simple app idea and $10 - 50K in savings.
Are you in the “Ugh, I guess I need to raise capital” camp?
Don't worry and check out this goldmine (and Wall Street Journal bestseller) when it comes to acquiring VC funding for your tech startup.
"Whether you're trying to get a new company off the ground or scale an existing business to the next level, you need to understand how VCs think. In Secrets of Sand Hill Road, Kupor explains exactly how VCs decide where and how much to invest, and how entrepreneurs can get the best possible deal and make the most of their relationships with VCs." > Goodreads
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