App development · Friends and Family

A How To Guide To Friends & Family Fundraising

Patrick Caulfield Managing Partner at Plugin Group

February 23rd, 2017

I have an app concept that I've discussed with enough friends, family and associates to feel confident that I'd be able to raise the 50-60K I believe I need for a decent MVP. My obstacle now is that I have no idea how to conduct a friends & family fundraising round from start to finish. Can anyone recommend a good book or other resource that walks me through it?

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

February 23rd, 2017

You don't need a good book. You need a good lawyer and a good advisor. Before you hire either make certain that you have a solid business plan and have an accurate idea what the MVP will cost.

Adam Pressman I've helped make a number of people millionaires. I'd like to do it a few more times.

February 23rd, 2017

The most important thing about a friends and family round is that they are not backing your idea...they may not even understand it. They are backing you. Show them why that belief is sound. Show them how you'll responsibly use their money, how you'll get and share the revenue. Make it clear to them that you know they are doing it because they cherish you and that they shouldn't suffer for doing so. One of the interesting "side-effects" of our Crowdfund Guarantee, which repays investors who back startups that fail, was how it helped entrepreneurs feel better about asking those they love for money. Knowing they had a way to ensure they couldn't lose helped them surmount the obstacle of getting the most important fund raising commitment you can get. If you don't have the support of people who know and care about you, what can you possibly expect from strangers?

kraig Into ICOs, fintech and saas

February 24th, 2017

Good for you. Get the lawyer asap.

Mateusz Grzegorzek Mobile App Developer/Consultant. Sport person.

Last updated on March 16th, 2017

Although I can't say much about the family fundraising process, what caught my attention is the estimated budget for the MVP around 50-60K. One piece of advice I can give is that maybe you can revisit your budget (30K) which will make the fundraising easier?

I'm an app developer myself and build most of my MVPs in a 15-25K budget. And for that you can get quite a lot (both iOS & Android support, native, custom UI, backend, etc). Not to mention that I'm not a low-cost developer, so could go cheaper , although with some extra risks.

I'm currently guiding few people on how to build their apps and I know they get quotes ranging from 5K - 60K for the same product. My observations are that the large price doesn't always guarantee the quality, but on the other hand low price almost always ends in pain :)

Steve Procter ... Venture Technologist Tech Entrepreneur seeks sales & referral partners for

March 17th, 2017

I love some of the responses... whatever the question, the answer is always "You need a good lawyer" ;-)