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Is it worth it to raise money right now? (alien.top)

submitted 11 months ago by LavonnaTeti@alien.top to c/entrepreneur@indiehackers.space

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I am a single founder working on a consumer mobile app for the past 2.5 years. Primarily working on the apps retention rate to try to get some semblance of product market fit. Then when I do, going to focus on growing revenue. I have been working basically full-time on this app since my main job doesn't take up much of my time.

I've held off on raising money so far, partly because I see no point in raising money unless I can hire at least 2 app developers which I estimate to require at least $500,000 in funding to do so. I don't believe I can raise this amount. (Correct me if I'm wrong, I've never raised money before)

If I can only raise enough money to pay myself + expenses (<$120,000 in funding) then I might as well stay at my main job and continue working full time.

However, I've recently been asking myself a few questions.

Can I just hire app developer contractors instead of app developer employees for cheaper to reduce how much I need to raise?

How much do I need to raise to hire at least 2 app developer contractors?

How much can I realistically raise for my business?

If I could hire only one app developer contractor/employee would that be worth it to raise money and quit my job?

Hoping you guys could guide me in my situation. :)

My Apps 6 Month Retention - 10%
My Apps Monthly Revenue - $500 (Have not focused on this as much as retention)

TL;DR - Single founder, working on mobile app for 2.5 years. Only want to raise money if I can hire a few app developers. Not sure I can raise minimum amount I need to hire a few app developers.

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[–] Focus_Forge@alien.top 1 points 11 months ago

Most of my experience is in the realm of physical products, but one workaround that helped was going to universities and hiring students part-time. Because I technically had students in my team, I could sign up for student business competitions to raise equity-free capital. Use that to see where the app goes and like another commenter said, if you’re seeing traction, you will become more appealing to potential investors.