The cloud-based drone software platform, DroneDeploy, recently announced that it has received $25 million in funding, according to Suasnews.com. DroneDeploy’s newest round of funding, for Series C, brings the total funding sum to more than $56 million. The company plans to use the Series C funding to grow its inventory of eighty platform apps.
Anyone who wants to bring a hot new app to market may wonder how to get adequate financing. This quick guide will detail some alternative lending options, such as crowdfunding, business loans from third-party financiers and angel investment.
Is Crowdfunding a Smart Choice?
Crowdfunding gathers people who commit their cash to companies and projects that they believe in. Crowdfunding is really growing and is anticipated to become a $300 billion industry over the next seven years, according to projections from the Massolution Global Crowdfunding Report.
Kickstarter and IndieGoGo are popular crowdsourcing platforms. Pros of crowdfunding include access to affordable money without equity loss and the capacity to pre-fund projects. Cons include pressure (entrepreneurs must deliver rewards to donors) and the possibility of poor payoff if a crowdfunding campaign fails.
Business Loans from 3rd Party Lenders
According to Maximizer.com, alternative lending solutions such as business loans from third-party lenders, are popular choices for modern entrepreneurs. Big banks can be stingy with credit if digital entrepreneurs don’t meet their strict criteria. Banks shy away from risk.
There are third-party lenders who specialize in catering to the needs of those with sketchy financial track records, such as poor credit or lack of credit history (9002 credit). Pros of business loans from third-party lenders may include shorter loan terms, easier access to loan approval and quicker loan processing time. The downside is the possibility of higher interest rates.
Angel Investors Help Start-ups
Angel investment happens with a wealthy person offers capital to a start-up company, in return for ownership equity or convertible debt. It may be worth looking for one of these investors, as they are typically more willing to take on risk. Also, the cash that a company receives from angel investment is not a loan.
However, you should be aware that angel investors are generally very discerning. They expect a lot from companies that they invest in. In terms of pros, the odds of success will go up with an angel investor on board. As for drawbacks, there will be strings attached and an entrepreneur won’t retain complete control of her or his company.
Anything Is Possible
If you have a great idea for an app, you may someday be in the position to access serious funding, just like DroneDeploy has. Everything starts with a superb idea. Now that you know some of the best alternative lending solutions for digital app entrepreneurs, you’ll be ready to choose what’s appropriate. After you do, you may start moving towards your dream of bringing your app to market.