As the year is coming to an end, I had a quick talk with Nexit Ventures about their view on 2010 and how the mobile and wireless space has changed and if there are any conclusions to be drawn for 2011. There are, both in terms of industry as well as deal sizes. If you’ve followed the startup scene in the last 12 months, these won’t come to you as a surprise, but it’s great to see these being acknowledged from investors as well.
From the mobile and wireless perspective, one that Nexit Ventures represents, it has somewhat been a year of platforms. The iOS and Android platforms have become huge and very real in terms of business as well as monetisation, one that naturally interests investors. Not only have they become large enough to support great businesses in the US, but also in Europe.
In essence, the mobile platforms, as well as Facebook for the matter of the fact, has enabled developers to bring applications and software to larger groups of people in a more efficient way. The App Store, Android Market (among others) as well as Facebook has to a large extent removed the problem of the distribution channel. One of the metrics, investors view and evaluate startups on – how easily are you able to bring your products to market.
The platforms in turn, have produced a flush of app startups. A distinguished attribute of app startups, from investors’ point of view, is the lower requirement for funding. What this in turn has done to the investment industry is that venture capitalists are now competing with angel investors. Nexit Ventures confirmed this that they’ve seen a growing amount of deal flow in this sector and the competition that originated from US, is very likely to arrive to Europe in 2011 as well (if it already isn’t here, at least partially).
For app startups, this is great news – there is essentially more competition for great deals and this should in the end guarantee better terms and funding for the brightest of companies out there.
According to Nexit Ventures, app startups are currently very well represented in the mobile and wireless space. Companies working with infrastructure or hardware solutions are somewhat rarer and there haven’t been a lot of them around this year.
So what are the biggest sectors in terms of deal flow? Some areas Nexit Ventures did disclose are video, analytics tools as well as location. Video is to see huge growth figures in 2011 according to Nexit. Analytics tools are mostly focused on consumer behaviour, while location is self explanatory.
So going into 2011, it seems that mobile platforms will play a key role in distributing a whole new set of content and value to consumers. I guess 2011 will also play role in telling us how well companies are able to monetise their contents. We’ve seen some success in this sense already with games like Angry Birds, but investors as the general public following the tech scene is surely hungry for more success stories.
Image by AltoExyl
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Nexit Ventures is a mobile venture capital firm focused on wireless technologies and services. Leveraging its extensive network in the global mobile marketplace, Nexit invests primarily in Nordic and US-based earlystage companies with products and services for a global market. For Nordic mobile companies, Nexit provides a bridge to Silicon Valley markets and exit opportunities.