Launching and developing a mobile application can be a difficult process as well as present several difficulties to those involved. The complexity, as well as the need to differentiate from fellow competitors of the industry, can act as a hindering factor to app developers.

That being said, developers who are able to acquire the funding to assist their projects are provided an advantage over those who are not.

Thus, EVAMAX contributes to this by helping innovators realize and discover the potential funding and benefits their company is eligible for. Listed below are a few different strategies and techniques to acquire the desired funding.

#1: Venture Capitalists and Angel Investors

Essentially, venture capitalists and angel investors are those interested in funding start-up businesses in exchange for some form of ownership equity or future convertible debt. The process of attracting these individuals is very difficult as investors need to truly believe in your app or product before they place significant amounts of money into your project, which often leads to several occasions of rejection.

Despite the difficulties in identifying an investor who is willing to invest in your app, it can provide long term benefits regarding the elimination of your financial restrictions. Collaborating with venture capitalists and angel investors is an excellent strategy to acquire the needed funding to develop your app successfully.

Related: Three Ways to Apply For a Business Grant in Canada

#2: Crowdfunding

Crowdfunding is a funding technique in which you open investments in your product to the public in exchange for a share in the company. You are essentially pitching your app to the public in hopes of receiving multiple small investments by those looking for a share in the profits.

The one downfall of seeking financing through crowdfunding is the fact that you are releasing your plans to the public without any way to ensure non-disclosure. This can expose your app to plagiarism and others stealing your idea by playing it off as their own.

If you have a sensitive app idea, negotiating with private investors may be the better option for your app development.

Related: BDC Capital’s New Innovation Fund is Transforming the Canadian Economy

#3: Bank Loan

As long as you have an organized proposal and business plan, another technique to acquire funding is through bank loans. For the most part, banks are willing to offer loans if there is a reasonable rate of interest and the economy is in good shape.

In order to acquire a loan, however, app developers must ensure they have a detailed business plan/proposal outlining their intentions and goals. As long as the bank recognizes a feasible way to earn a sufficient return on their investment, you should have little to no problems securing a bank loan.

#4: Government Grants, Tax Incentives, and other Funding Programs

In Canada specifically, there are several programs available to app developers that can provide funding throughout the development of their product.

Canada is home to one of the most generous tax incentive programs in the world, in which they offer tax incentives to those seeking innovation or conducting technologically advancing activities.

There are numerous sources of funding to Canadian businesses that apply to app development. Whether this is through the SR&ED (Scientific Research and Experimental Development) program or government grants, app developers have a wide range of potential resources they can use to their advantage.

Developing your app can be positioned in a way that categorizes your project as an eligible SR&ED activity or qualified under a specific government grant in order to receive financing. All in all, these programs can provide the financing needed to successfully launch as well as operate the app.

Listed below are a few examples of the many programs other than SR&ED and government grants available to app developers in Canada.

Listed above are just a few of the many strategies you can take to acquire app development funding. There are several opportunities and pathways to connect with those who can assist you in successfully launching your product. Programs, such as those that support innovation, can provide benefits and funding to your company.