Corporations from Lego to Microsoft are enlisting the help of mobile app development companies to build out secure and accessible mobile apps across multiple devices. And venture capital investors have noticed.
Since the start of 2012, mobile app development startups have raised nearly $262M across 36 deals, which accounts for 59% of the $446M to the mobile app development space overall. Just in June, six mobile app development companies received venture capital financing including Kony Solutions, which took a $18.3M Series D round from Telstra Ventures, and Mobiquity, which raised a $12M Series B from investors including NewSpring Capital and Sigma Partners.
Besides the increasing number of enterprises deploying mobile apps, M&A has also helped to make investors more bullish on the space. Facebook’s $85M acquisition of Parse in May and IBM’s $70M acquisition of Worklight in January 2012 were recent exits in the mobile app development space which highlight increasing interest by strategics for the space (these transactions are highlighted in the chart below). On a related note, venture capital funding to the broader developer tools category hit $646M in the last year as YoY funding jumped 77% so this growth looks to be part of a larger trend and increased interest in the developer tools space.