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Funding · For apps that already earn

How to fund your app's growth.

Seven ways to pay for growth once your app makes money, what each one really costs, who carries the risk when growth doesn't come, and how to pick.

AppBacked growth teamUpdated October 15, 202611 min read

Most apps that make a few thousand dollars a month stall for the same reason: growth costs money up front and pays back months later. Ads, creatives, localization and paywall tests all need cash and hands before they return anything. Here is every realistic way to fund that gap, without the sales pitch.

The real question: who carries the risk?

Every option below answers the same three questions differently. Who pays for the growth? What do you give up for it? And what happens to you if the growth doesn't come? The last one matters most. A deal that looks cheap when growth works can be ruinous when it doesn't.

The seven options at a glance

OptionWho pays for growthWhat you give upIf growth fails
Reinvest revenueYouYour income, speedYou lose what you spent
Revenue-based financingA lender, then youA share of revenue until a capped amount is repaidYou still repay
Angels or VCsInvestorsEquity, often board sayYou keep going, diluted
App publisherThe publisherA large revenue share, often control or ownershipPublisher drops the app
Growth agencyYouRetainer plus a share of ad spendYou paid anyway
Growth partnerThe partnerA share of the revenue they add, for a fixed termThe partner loses its money
Sell the appThe buyerThe appNot your problem anymore

1. Reinvest your revenue

The default, and still the right answer for many apps. You keep everything and answer to no one. The cost is speed: you can only spend what last month earned, so a channel that pays back in nine months will take years to scale. It's also a skills problem. Spending your own money well on paid users, creatives and paywalls is a full-time job most solo developers don't want.

Best for: apps that grow mainly through search and word of mouth, and developers who want full control above all.

2. Revenue-based financing

A financier advances cash against your future revenue and takes a fixed percentage of each month's revenue until a capped total is repaid, often the advance plus a flat fee. It's faster and less dilutive than equity, and many providers decide from your store and bank data in days.

The catch is that the risk stays with you. If the money buys users who don't pay back, you still owe the full amount, from a smaller business. You also still need the team to spend it well.

Best for: apps with a proven paid channel and predictable payback that only lack cash.

3. Angels and VCs

Equity investors pay for growth and keep a share of the company forever. Venture capital needs a few companies to return the whole fund, so most VCs look for apps that can become very large and want to see a path there. A profitable utility growing steadily is a good business that many VCs will still pass on.

Angels are more flexible. A small round from operators who've grown apps before can bring both money and know-how.

Best for: apps aiming for category leadership, teams that want to build a company rather than a product.

4. App publishers

Publishers take over user acquisition, monetization and sometimes development, in exchange for a large share of revenue, exclusive rights or full ownership. They bring scale and a proven playbook, especially in games and utilities.

The price is control. Read the contract for exclusivity, term length, who owns the developer account and the code, and what happens to the app if the publisher loses interest.

Best for: developers who want to build and hand off everything else.

5. Growth agencies

Agencies run ASO, creatives or paid ads for a monthly retainer, often plus a percentage of ad spend. Good ones are worth it. But you pay the retainer and the ad budget whether or not anything works, and a fee tied to ad spend rewards spending more, not earning more.

Best for: apps with budget to spare that want to keep every dollar of upside.

6. Growth partners

A growth partner puts in both the money and the team, and gets paid only from the growth it creates. A typical structure: your revenue before the deal becomes a baseline that stays yours, the partner funds ads, creatives, store page and paywall work, and revenue above the baseline is shared for a fixed term. If nothing grows, the partner absorbs the loss.

This is the model AppBacked uses: our budget and our team, $0 upfront, revenue above your three-month baseline split 50/50 for 24 months, then all of it is yours again, including the users we paid to bring in. Ad accounts stay in your name.

What to check with any partner: how the baseline is set, whether the share applies only to growth or to all revenue, the term, who owns ad accounts and creatives, and whether you can walk away after a test month.

Best for: apps that already earn, with room to grow they can't fund or staff themselves.

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7. Selling the app

If you'd rather move on, a profitable app can be sold. Small apps usually change hands for a multiple of annual profit, and the multiple depends on how steady that profit is, how much it relies on paid users, how old the code is and how much work the app needs each week. Marketplaces and brokers handle the process; serial acquirers buy portfolios of apps directly.

Worth knowing: buyers pay for growth trends. An app growing for six months sells for more than the same app flat, so growing first and selling later is often worth more than selling now.

How to choose

  • Ads already pay back and you only need cash: revenue-based financing or your own revenue.
  • You need both the money and the people: a growth partner, or a publisher if you're happy to hand over control.
  • You have money but no team: an agency, with clear targets and a short notice period.
  • You're building something huge: angels and VCs.
  • You're done with it: sell, ideally after a growth run.

What any backer will ask for

Whichever route you take, the same numbers come up. Have these ready:

  • At least three months of net revenue, by month, from App Store Connect or Google Play Console.
  • Subscribers, trial conversion, refunds and renewal rates if you sell subscriptions.
  • Installs by source: search, browse, referrals, paid.
  • What you've spent on ads so far and what it brought back.
  • Your top countries and how the store page converts in each.

And run a free App Store audit first. Fixing the store page before buying traffic makes every dollar of any of these options go further.

FAQ

How do I get funding for an app without giving up equity?

Reinvest revenue, use revenue-based financing, or work with a growth partner that funds growth for a share of the added revenue. Publishers and agencies are alternatives that don't take equity but take revenue or fees instead.

What is revenue-based financing for apps?

A financier advances cash and is repaid from a fixed percentage of your monthly revenue until a capped total is reached. You repay it whether or not the money produced growth.

How is a growth partner different from revenue-based financing?

With financing you receive cash and must repay it. With a growth partner you receive no cash; the partner spends its own budget on your growth and is paid only from revenue above your baseline, so it carries the risk.

How much revenue does an app need to get growth funding?

It varies by provider. AppBacked works with apps from $1,000 a month of net revenue and six months of history, and sizes the budget at up to six times monthly revenue.

Notes

  • Terms for financing, publishing and agency deals vary widely by provider. Treat the descriptions here as typical structures and read each contract.
  • AppBacked's own terms are summarized on How it works. Estimates on this site are illustrative and are not an offer.
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