• October 2018
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Should I raise capital for my profitable mobile app business? It’s generating $15,000 a month in net profit, growing by 5% a month. The company is self-funded. Should I raise outside capital and try to grow faster or focus on organic growth?

A study from Adobe finds that, on average, mobile apps achieve half their lifetime usage in the first six months: 

I would certainly consider these data when thinking in terms of whether to raise capital for what appears to be a thriving mobile app business. I presume you are generating revenue from multiple apps which in this case effectively monetizing them would require a constant process of development which it appears you may be able to self fund, but if you were looking to scale up your operation to include more cost intensive apps from a development perspective outside capital may be needed if you want to effectively invest more into product development. As James points out above, investors will likely be aware of the high likelihood of mobile app fatigue among users and request a greater stake in your business so as to offset the risk of potential reduced revenue in the future. You have to ask yourself is the risk and the prospect of giving up a substantial stake in equity worth it?

LawTrades offers a variety of attorneys that can be with you every step of the way. We’ve helped over 1000 startups and entrepreneurs sort through the type of question you raise here Our process is simple: 1) tell us what you need, 2) connect with a lawyer, 3) pay an affordable flat-fee at the end. No hassle, no uncertainty with full transparent pricing Reach out to us today for a consultation. We are here for you!

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