VCs Bet on Mobile App Development

Venture Capital Bet on Mobile App from The Startup Garage
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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!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.