Mobile Internet-Based Startups Are The Next Big Thing, Research Reveals
UK-based mobile internet industry consulting firm, Digi-Capital, conducted research to conclude that venture capitalists, private investors, corporate investors, and equity groups have funded more than $19.2 billion worldwide into mobile internet-based technology start-ups over the past 12 months.
The research was carried out by Digi-Capital for its Mobile Internet Investment Review Q3 2014 report, which found that the multibillion-dollar venture capitalist investment in mobile internet-based tech start-ups for the year represented a whopping 232 percent increase compared to Q3 of 2013.
Digi-Capital director, Tim Merel, said that the largest share of the total investment went into mobile-commerce businesses, followed by travel/transport platforms, and utilities. Even games came by fourth in investment.
“The big money went into m-commerce ($4.2 billion), travel/transport ($3.3 billion), utilities ($1.8 billion), and games ($1.1 billion), with 10 other mobile internet sectors raising over half a billion dollars each: food and drink, enterprise/B2B, social, tech, advertising/marketing, messaging, medical, photo and video, music, and finance,” said Merel.
While the amount of investment in mobile internet businesses rose, the potential for returns did so too, simultaneously. This helped in a strong and reliable relationship being made between the investors and the company during the period.
“Institutional investors have seen their faith in mobile internet justified, with the Digi-Capital Mobile Internet Index of 78 public companies in and around mobile internet giving a 28 percent return in the last 12 months,” said Merel.
The report revealed that there were strong returns across the 15 individual mobile internet sector indices that were studied:
- Travel/transport: 78 percent return
- Social networking: 45 percent
- Navigation: 43 percent
- Messaging: 40 percent
According to the research, global mobile internet revenue is expected to grow to a staggering $700 billion by 2017. This exponential increase in the revenue will be mainly due to the promising field of m-commerce and app-as-a-service platforms, with other maturing market opportunities in several sector categories, like wearables, education, and navigation.
“There have been lots of big numbers already, but for Mobile Internet investors the best is yet to come,” Merel says.
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