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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: