If you’ve got a great app idea, one thing becomes clear very quickly: without the right funding, it won’t go far.

Whether you’re just starting out or already have a working prototype, raising capital for app development is one of the biggest challenges most founders face. But the good news? You don’t need to be a tech guru or a seasoned entrepreneur to attract investment. You just need the right strategy — and the right support.

In this guide, we break down everything you need to know about securing funding for your app, including 8 smart strategies used by successful startups, insights into funding stages, and the best ways to position yourself for success.

The 4 Key Stages of App Funding

Before we dive into how to raise funds, it’s important to understand where you are in your startup journey. Each stage of growth requires a different funding mindset, and knowing what stage you’re in can help you target the right funding method.

  1. Pre-Seed Stage: The Idea & Validation Phase

This is where many app founders begin. At this point, you might just have an idea or a rough outline of your concept. You may be doing early market research, validating the problem you’re trying to solve, or building your first wireframes.

According to Startup Genome, over 90% of startups fail, and a major reason is building something without proper validation. Pre-seed funding is about eliminating that risk early.

Funding at this stage is often informal — coming from your own savings, friends and family, or small innovation grants.

  1. Seed Stage: From Idea to MVP

By now, you’ve taken the first leap. You likely have a prototype or a basic version of your mobile app — also known as a Minimum Viable Product.

Seed funding deals have grown substantially over the years, with the average seed round now exceeding $2.2 million globally (Crunchbase, 2024). This funding helps you turn your prototype into a usable product and get real feedback from users.

This is typically the first time external investors like angel investors or seed-stage venture firms come in. It’s your opportunity to raise enough capital to get your app in the hands of users and gather real feedback.

  1. Series Rounds (A, B, C, etc.)

These come after the seed stage when your app is in the market and showing growth. You’ve found product-market fit, built a solid user base, and are ready to scale.

In 2023, Series A rounds averaged around $10–15 million in tech sectors across Australia and the US, reflecting investor confidence in proven business models.

  1. Late-Stage Growth

Once your startup has reached maturity and consistent revenue, you’re ready for larger-scale investments. These are used for acquisitions, entering global markets, or preparing for public listing.

8 App Funding Strategies That Work

Let’s now explore eight proven strategies that founders use to raise the capital they need — from early ideation to high-growth stages.

  1. Bootstrapping

Many founders start by investing their own money. It’s risky, but it offers full control. You make the decisions, you own the equity, and you’re building on your own terms.

This is still the most common startup funding route. According to Exploding Topics, nearly 77% of startups bootstrap their early stages.

It’s how platforms like eBay and many successful apps today got their start. At Appomate, we’ve worked with bootstrapped founders who chose to invest in their ideas with focus and determination — and it paid off.

  1. Friends and Family

In early stages, close connections can be your biggest supporters. A small raise from people who believe in you personally can help fund your prototype, MVP, or initial marketing.

Research shows that 38% of startup founders tap into friends and family funding during their initial development phase (Kauffman Foundation).

  1. Angel Investors

Angel investors are individuals — often experienced entrepreneurs or professionals — who invest in early-stage businesses they believe in.

There are over 20,000 active angel investors in Australia and New Zealand alone, and angel investments typically range between $25,000 to $500,000 depending on the stage and industry.

  1. Venture Capital

Venture capital is best suited for startups with a clear path to rapid growth. Globally, VC investment in mobile and SaaS apps hit over $330 billion in 2023, despite a tighter market (CB Insights).

However, fewer than 1% of startups ever raise VC funding, making this the most competitive path. If you’re aiming for fast growth in a large market, it’s worth preparing for.

  1. Crowdfunding

In Australia, equity crowdfunding has become increasingly popular thanks to platforms like Birchal. In 2023, Birchal reported over $100 million raised across 200+ campaigns, with some tech startups raising over $1 million in weeks.

Crowdfunding works when your idea resonates with the public. A compelling story, sleek prototype, and clear traction can bring in more than just funds — it builds your future customer base.

  1. Debt Financing

While not the first choice for many startups, business loans can work when there’s clear revenue or collateral.

A 2024 NAB Small Business report revealed that over 23% of tech-enabled small businesses used debt financing to support their growth.

  1. Accelerator Programs

Globally, programs like Y Combinator have helped launch billion-dollar companies including Airbnb, Dropbox, and Stripe.

Closer to home, Australia’s Startmate Accelerator has funded over 180 startups with a collective valuation above $2 billion.

These programs typically offer $50,000–$150,000 in funding plus mentorship in exchange for 5–10% equity.

  1. Grants

Grants are often overlooked but can be incredibly valuable. For instance:

  • LaunchVic offers up to $300,000 in matched funding for pre-accelerator and startup programs.
  • Business.gov.au lists dozens of grants tailored for tech, disability, health, and education.

They require detailed applications but provide non-dilutive funding — a smart path for mission-driven founders.

Choosing the Right App Funding Path

Here’s a simple framework:

  • Want control? Start with bootstrapping or grants.
  • Need mentorship or scale fast? Look to angels or accelerators.
  • Have proven traction? Go for venture capital or debt financing.
  • Want to test market support? Try crowdfunding.

There’s no single answer — many successful founders mix and match app funding methods across their journey. What matters most is your long-term vision and the kind of company you want to build.

How to Improve Your Chances of App Funding Success

Whatever strategy you choose, here’s how to make it work:

Raise in Phases

Start with a prototype, then raise more as your app shows results. This gives you leverage and allows you to retain more equity.

Build a Solid Business Plan

Investors want clarity. Your plan should clearly outline the problem you’re solving, the market opportunity, your unique solution, monetisation model, growth strategy, and your team.

Have an amazing team
Your team is your biggest asset. Investors bet on people, not just ideas. A well-rounded team with technical, business, and marketing capabilities increases your credibility and ability to execute. Even if you’re a solo founder now, showing plans to bring on advisors or co-founders can boost confidence.

Growing market
Make sure you clearly highlight the market size and why it’s growing. Demonstrate with data and trends that your solution fits a rising tide. A growing market means more opportunity for users, revenue, and returns — and that’s what investors are looking for.

Create Momentum

Build something first — even a simple prototype or waitlist — and show investors that the wheels are already turning. It shifts the conversation from “I need your help” to “We’re building this — are you in?”

Momentum builds confidence. Confidence attracts capital.

How Appomate helps founders
At Appomate, we support first-time app founders beyond just design and development. Through our founder coaching, pitch deck support, and access to a network of investors and accelerators, we help you craft a compelling story and get investor-ready. Our clients have gone from idea to investor pitches — and some to profitable exits — faster and safer than going it alone.

App Ideas Most Likely to Get Funded

Some app categories are seeing major investor interest right now:

AI-Powered Apps

Investors are prioritising apps with AI integration, particularly those using automation, predictive analytics, and generative AI.

Apps that use AI to solve real-world problems — in healthcare, customer service, education, or content creation — are highly fundable.

  • According to CB Insights, AI startups raised over $50 billion globally in 2023, despite a cautious funding climate.
  • Gartner reports that more than 80% of enterprises plan to deploy generative AI by 2026, indicating long-term demand.
  • A 2024 IDC report showed that AI-powered mobile apps saw a 30% increase in funding interest year-over-year, especially in verticals like health tech, fintech, and edtech.

At Appomate, we’re seeing increased founder interest in building AI MVPs, and our AI toolkit helps non-technical founders leverage AI from day one — from strategy to prototype to scalable product.

 

Health and Wellness

  • Projected to reach $35.7 billion globally by 2030
  • Fitness tracking, sleep, nutrition, and wellness coaching apps are leading the trend

Sustainability

  • 66% of consumers in the US are willing to spend more on sustainable products
  • 82% globally prefer eco-friendly packaging
  • Startups in this space raised over $11 billion in 2023

Finance and Budgeting

  • Over 573 million finance apps were downloaded in 2021 alone
  • The rise of digital wallets and personal budgeting continues to fuel investor interest

Education and Upskilling

  • The global eLearning market is expected to hit $476.5 billion by 2032
  • Demand for reskilling in an AI-driven job market makes this a hot sector

Mental Health

  • The global mental wellness app market is projected to reach $23.8 billion by 2032
  • Mindfulness, therapy, and emotional wellness are now mainstream investment areas

Final Thought: Start With Belief

You don’t need a million dollars to start. You just need clarity, commitment, and a support system that believes in your vision.

At Appomate, we’ve walked this journey with dozens of founders — some bootstrapped, some funded, all driven. We help you not just build your app, but build it the right way: validated, focused, and ready for growth.

Have an idea worth building?
Let’s explore how to fund it, launch it, and grow it — together.
Book a free founder strategy session now