{"id":1598,"date":"2021-10-04T09:24:14","date_gmt":"2021-10-04T09:24:14","guid":{"rendered":"https:\/\/www.appomate.com.au\/blog\/?p=1598"},"modified":"2021-10-04T09:24:14","modified_gmt":"2021-10-04T09:24:14","slug":"10-smart-ways-to-fund-your-app-idea-in-australia","status":"publish","type":"post","link":"https:\/\/www.appomate.com.au\/blog\/2021\/10\/04\/10-smart-ways-to-fund-your-app-idea-in-australia\/","title":{"rendered":"10 smart ways to fund your app idea in Australia"},"content":{"rendered":"

10 smart ways to fund your app idea in Australia<\/b><\/p>\n

Startup ecosystems are on the rise from locations all over the world. Many entrepreneurs have been able to build profitable businesses from small towns by getting funded through angel investors and venture capitalists.<\/span><\/p>\n

The same is not yet true for Australia where a significant portion of startups either relocate or pivot their teams towards India or Silicon Valley to get the initial funding they need to grow their business.<\/span><\/p>\n

But here’s the good news: there’s now a growing interest in early-stage investments in Australia as more companies look to invest in interesting ideas. Venture capital firms that previously only looked at software as a service (SaaS) startups, are now showing an interest in other product-oriented companies as well.\u00a0<\/span><\/p>\n

“Most Australian startup founders aren’t aware of the potential benefits of seed funding. Even the ones who are aware, see seed investment as a last resort,”Seed funding is not easy to get in Australia, but it can definitely give your business a head start.”<\/span><\/p>\n

In this article, we look at 10 ways Australian entrepreneurs can raise funds for their startup idea.<\/span><\/p>\n

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  1. Bootstrapping\u00a0<\/b><\/li>\n<\/ol>\n

    Although this might seem counter-intuitive, bootstrapping is perhaps the best method for getting early-stage funds because it forces you to focus on revenue generation.<\/span><\/p>\n

    “Bootstrapping can be tough, but focusing on generating revenue from day one makes good business sense,”\u00a0<\/span><\/p>\n

    BlackStar has bootstrapped its entire operation over the last 12 years without any external funding. “And we are very happy with this decision because starting out with zero money means that every dollar we earn goes back into our business.”<\/span><\/p>\n

    \u00a0Also many entrepreneurs don’t realise how difficult it can be to start a small business. They tend to underestimate the amount of work needed before their companies start seeing profits and overestimate the amount of money they\u2019ll make through investments.<\/span><\/p>\n

    Running your own business is much harder than many people think, especially if you are doing it alone, You need to be committed and patient because it takes time to establish your company.<\/span><\/p>\n

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    1. Fundraise from friends & family<\/b><\/li>\n<\/ol>\n

      There are many sayings about making money, but the old ones are often the best. The same holds true for funding your startup \u2013 if you can get other people to fund it, it’s probably the quickest way to get an early injection of capital into your venture. Crowdfunding sites have made this easier than ever before. KickStarter, one of the most well-known crowdfunding sites in Australia, hosted around 26,000 projects and raised over $690 million since 2009.<\/span><\/p>\n

      A major advantage of this method is that there isn’t an expectation on you to give up equity, nor is there any need for documentation or financials (although they may provide useful information). You can also get valuable feedback from people in your network.<\/span><\/p>\n

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      1. Seek government funding programs<\/b><\/li>\n<\/ol>\n

        The Federal Government has a number of grant schemes in place to support entrepreneurs and startup companies in Australia. These include R&D grants, Commercialisation Australia Program grants, Enterprise Connect grants, HR & More grants and Mentoring for Investment grants. There are also other state and territory government programs that can give you a leg up. Do your research and find out what’s available to support early-stage companies in the industry you’re involved with.<\/span><\/p>\n

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        1. Seek equity crowdfunding<\/b><\/li>\n<\/ol>\n

          Equity crowdfunding is a relatively new concept; it only became legal in Australia on 1 January 2015, but has been taking off since then. The idea behind it is that anyone can invest small amounts of money into a startup business for an equity stake, as opposed to traditional models which required large investments from wealthy individuals or institutions. One example of equity crowdfunding in Australia is CrowdfundUP, who launched their product late last year after working closely with the Australian Securities and Investments Commission (ASIC). On their website they claim that in the next five years there could be up to $500 million in equity crowdfunding deals.<\/span><\/p>\n

          However, some of the challenges associated with using a crowdfunding platform include:\u00a0<\/span><\/p>\n