Tag Archives: Mobile Application

VCs Bet on Mobile App Development

Venture Capital Bet on Mobile App from The Startup Garage

VCs Bet on Mobile App Development

Mobile is the Rage & VCs are Taking Note

Corporations from banks to fast food to software firms are turning to mobile app developers to build mobile app devices for their customers.  Given the popularity of mobile devices and the apps that make them great, venture capital investors are chomping at the bit to get a piece of the pie.  Since the beginning of 2012, mobile app development startups have raised $262M across 36 deals.  This represents 59% of the $446M that mobile app development firms have raised overall!

M&A Spurring Growth

In addition to the increasing popularity of mobile apps and enterprises deploying mobile apps as a result, M&A activity has helped to make investors bullish in the sector.  Notable recent exits that have caught the interest from strategic investors include:

  • Facebook’s $85M acquisition of Parse; and
  • IBM’s $70M acquisition of Worklight

On a broader note, VC funding to the developer tools category as a while hit $646M in the last year, an increase of 77% over the previous year.  The following chart outlines VC funding to the mobile app development since 2011:

VC Funding To Mobile App Development from The Startup Garage

All data and graphs thanks to CB Insights.

 

Whether you have a question about venture capital financing or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Mobile is Transforming Consumer Retail Behavior

Mobile Retail Development Trends from The Startup Garage

Mobile is Transforming Consumer Retail Behavior

Multi-Device Retail Preference

Multi-device usage is quickly becoming the norm in consumer behavior.  Consumers will research a product on their phone or iPad, test the product in a brick-and-mortar store, and go home to purchase the product online from their laptop computer.  While this shift to multi-device usage can make it difficult for marketers to reach their consumers, it does come with added benefits.  This behavior evolution enables brands to engage their audience multiple times across devices with the same marketing campaign, thus increasing brand awareness, recall and ROI.

The Move to Mobile

Consumers are turning to their mobile platforms now more than ever for research and purchasing retail items.  The consumer market has experienced a rapid increase of in-store mobile usage.  Furthermore, thanks to mobile, consumers have changed the way they engage with brands.  Thanks to a research study conducted by JiWire, we’ve discovered the following shifts in consumer retail behavior:

  • 42% of consumers prefer to research retail-related shopping on their smartphones and tablets over other devices, while 45% prefer purchasing in-store.
  • Consumer engagement with retail ads increases 42% within a two mile radius of the store’s location compared to ads inside the store.
  • Of all the commercial venues where people use their mobile devices, retail venues are #1, representing 31% of all mobile usage.
  • Smartphones replace laptops as the device connecting to public WiFi for the first time in history.

 

Whether you have a question about consumer mobile behavior or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Angel Investment Trends in Q1 2013

Angel Investor Trends in 2013 from The Startup Garage

Angel Investment Trends in Q1 2013

Angel Investor Valuations Remain Strong

Angel investor median deal sizes increased as valuations remained strong in the first quarter of 2013.  The majority of deals went to healthcare, mobile and internet startups.  Highlights from angel investing in the last quarter include:

  • The median angel deal size for Q1 2013 reached $680K – up 5% since last quarter and 24% since the same quarter last year.
  • 81% of deals were completed in angel groups’ home states.
  • Median pre-money valuations for angel deals remain unchanged from 2012 at $2.5M, dispelling the great ‘bubble myth.’
  • Internet, healthcare and mobile dominated angel investment dollars, receiving over 72% of overall angel deal flow.
  • The most active angel groups in Q1 included Alliance of Angels (CA), Desert Angels (MA) and Golden Seeds (NY).

All data thanks to CB Insights.
 

Whether you have a question about Angel Investment or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Seed VC Funding in Silicon Valley On The Rise

Venture Capital Investment Trends from The Startup Garage

Seed VC Funding in Silicon Valley On The Rise

Seed VC Funding in Bay Area on Pace for Record Year

Seed funding in the San Francisco area appears to be on pace for another record year.  Seed deals in 2013 have seen a massive push towards the mobile sector with a contraction to the online sector.  Seed funding to both San Francisco and Silicon Valley reached over $192M across 242 deals in the first half of 2013 alone.  To put this in perspective, this is more than all of 2010 and nearly comparable to 2011 investment funding and deal levels.

Seed funding in the San Francisco area appears to be on pace for another record year. The Startup Garage

 

Funding By Sector

The Bay Area seed investment portfolio has seen a steady increase in internet seed deals since 2010.  Though, unless there is a large push in the back half of 2013, it looks like internet see deals will be less than 2012.

Seed funding in the San Francisco area appears to be on pace for another record year. The Startup Garage

On the other hand, mobile deals are already at 75% of the funding levels seen in all of 2012 and is poised for a steady growth trend.

 

Most Active Seed Investors in the Bay Area

The following chart depicts the largest investor groups in the Bay Area.

All data and graphs provided by CB Insights.

Whether you have a question about Angel Investment or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Investment in Mobile App Development Industry is Soaring

Mobile App Development Trends from The Startup Garage

Investment in Mobile App Development Industry is Soaring

VC Funding in Mobile App Development Still Hot

Since 2012, mobile app development companies have taken $262M in VC funding across 36 deals, which accounts for 59% of the $446M to the mobile app development space overall.  Some of the largest acquisitions included Kony Solutions at $18.3M in a Series D round from Telestra Ventures as well as Mobiquity at $12M in a Series B round from NewSpring Capital and Sigma Partners.  On a broader note, VC funding to the developer tools category as a whole reached $646, a 77% increase from the previous year.

M&As Are Also Hot

Investors bullish outlook on the market has been spurred by the increasing number of enterprises utilizing mobile apps as well as numerous M&As in the space.  Some of the large M&As include Facebook’s acquisition of Parse for $85M and IBM’s acquisition of Worlight for $70M (highlighted in the chart below).
VC Mobile App Development from CB Insights

Graph and data thanks to CB Insights.

With growth projections for the mobile industry as a whole in the double digits, mobile app development companies will likely continue to see an increase in VC funding in the years to come.


 

Whether you have a question about Mobile App Development or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

6 Classes of Mobile Startups That VCs Find Interesting

6 Classes of Mobile Startups That VCs Find Interesting from The Startup Garage

6 Classes of Mobile Startups That VCs Find Interesting

As most consumers nowadays would agree, one of the most useful consumer devices is the smartphone.  VCs happen to concur.  With that said, they find some spaces in the mobile tech sector to be more exciting than others.  Below is a list of the 6 top sectors that get VCs excited:

1. B2B Business Solutions Mobile Applications

More and more, businesses are turning to mobile applications to streamline their business and/or adopt an entirely new business model that is dependent on these technologies.  Some usch mobile applications include Flurry (mobile analytics), AdMob (mobile advertising) and Urban Airship (mobile push messaging).  What makes these solution providers so attractive is their straight forward business models and large market opportunities.

2. Location Enabled Applications

Businesses such as Uber (ordering a ride when you need it) and HotelTonight (finding a place to stay overnight) also employ a straightforward business model, they take a percentage of every transaction.  Noticing a trend?

3. Mobile Automation

Another space that VCs are investing in are mobile applications that control non-mobile products such as Nest (mobile control of building thermostats) and eSecure (mobile control of building alarm systems).  These applications make other services much more useful and provide on-the-go access.  They also provide opportunity for large acquisitions by major industry players.

4. Mobile Payments

Mobile payment applications such as iPhone’s square also employ a simple business model, they take a transaction fee.  They also provide businesses with loyalty programs and couponing services.  The beauty in the business model here is that they have a strong value proposition for all parties involved.

5. Mobile Games

Though mobile games are a dime-a-dozen and it is very much a hit driven business, the leaders of these simple games (Angry Birds, Minecraft, etc) generate hundreds of millions of dollars in sales.

6. Photo Applications

The success of companies like Instagram, Snapchat and Vine is no secret.  In a similar boat are mobile messaging applications such as WhatsApp and Voxer.  While these companies do not have early proven business models, those that make it big can implement one down the road.

Keep in mind, the key to VC investment in mobile and the internet in general is to invest in what hasn’t already been introduced.  Rather, VC investors are looking for the next best thing.  Nonetheless, what we can learn from the categories above is that they like simple business models that can scale, quickly.


 

Whether you have a question about 6 Classes of Mobile Startups, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

Create an Effective Online Presence

Create An Effective Online Presence from The Startup Garage

Create an Effective Online Presence

The environment of the web is continually changing, the weighted importance of real-time content, social integration and mobile compatibility rising significantly in the last few years. These changes are creating opportunities and challenges for companies and organizations of all scales and experience depending on adaptability and preparation.

Online Integration ImageYour online presence is created by the ongoing conversation between the website (your virtual storefront), fresh and relevant content, and your community (social media integration).

The first step is to lock down your brand, define your identity and stick to it. Create your website to reflect your company’s purpose and ideals, while keeping visual elements consistent. If you removed your logo, would visitors still recognize it as your brand?

The ease of use of your site for both the visitor and the content manager is one of the most important elements for online success. Establish a clear purpose and goals for the site’s foundation. Develop a strategy to encourage visitors to take action and draw out a sitemap to support your goal. Navigation and layout should be simple and intuitive, promoting the visitor to explore.

Create your site in a content management system that allows you to easily and comfortably update and add content. It is increasingly important that your site stay fresh and offer your audience a reason to return. This not only positions you as a knowledgeable resource, but also improves your position in search results.

The shift to mobile web browsing is expected to overcome traditional browsing in the next few years, making the effectiveness of your website heavily reliant on its ability to maintain functionality across devices. You should know your audience and what devices they use, but your site should ideally perform across all platforms. The recommended method is to create one responsive design layout, versus creating and updating multiple devise-specific sites.

Integrating media outlets will allow you to operate more effectively and efficiently, while stimulating real-time conversation in the community. Your involvement in the various social media platforms will vary depending on your business. Carefully select which of these will be the most effective in achieving your goals and commit to evolving your brand’s presence in each. Tools are readily available to integrate posts from one platform to another, saving you time and increasing exposure. Even with a wealth of content, only posting to your own site will most likely not create the following or involvement you desire.

In the era of the web, creating your presence online can be equally, if not more important than a brick-and-mortar establishment as many people start the purchasing process with research online. Integrating your brand’s vision with its website, relevant content, and community will establish your company as an authority in the industry and could be the deciding factor in whether or not you make the sale.

 

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