According to recent reports, the mobile sector has overtaken the health care industry in terms of VC funding securing an investment of 1.2 billion in Q3’13 (1). Since 2012, capital investors have consistently invested in the mobile and telecom sector across various different technologies in the mobile ecosystem. The three most popular invested in technologies were customer relationship management, business intelligence and payment technologies.
The investments are flowing in mobile and telecom sector due to the increase in use of Smartphone and tablet usage. The extensive use of mobile devices in offices is specially being driven by the BYOD trend. With more and more investment several companies are tapping into this potential market. Some top companies that are investing heavily are 500 Start-ups, Andreessen Horowitz and Google Ventures (1). Other traditional VC investors and Corporate VCs such as SV Angel, Qualcomm Ventures, and Accel Partners are also actively pursuing the mobility sector.
Some examples of mobility companies who have managed to secure funding are Agito Networks (2) and AgreeYa Mobility (3). Agito Networks, a company specializing in providing new technologies in enterprise mobility closed its second round of financing with a $13 million investment. Some of the VC firms participating in the event included Castile Ventures, ITX International Holdings Inc. and Battery Ventures. This new increased investment will help Agito Networks to expand its enterprise mobility product market. AgreeYa Mobility has also secured funding from Saama Capital for their flagship product Onvelop. According to Reuters, these solutions will help the enterprise mobility market making significant contribution to companies with tech-enabled workforce.
With mobility changing the outlook of enterprises, it is primarily focused on increasing employee productivity to increase overall revenue. However, a report published by Dimension Data (4) has revealed that in a survey conducted, while 79 percent of the world’s companies are convinced of positive effects of embracing mobility for businesses, a mere 29 percent have a clearly thought out mobile strategy. Another revelation from the report is that mobility is not the primary focus of most companies with a 35 percent claim to have addressed trouble shooting mobility. Even though most companies are waking up to the importance of mobility in businesses, few companies have a well structure IT policy around mobility.
- Http: //www.cbinsights.com/blog/trends/mobile-record-vc-financing-quarter