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Mobile Meets Money: Bay Area #VentureCapital Hotspot

4 February, 2015 | Article Source: Meghana Vijaykumar  |   (No Comments) | 26,043 Views
Mobile Meets Money: Bay Area #VentureCapital Hotspot

Mobile Meets Money: Bay Area #VentureCapital Hotspot

The Silicon Valley is world renown for its Venture Capital scene. There is an absurd amount of  funding flowing through the Valley, which is a well-known fact. It’s what makes the area so appealing for entrepreneurs. Specifically internet and mobile app companies are sitting in the sweet spot, with promising new companies waiting in the wings while big names continue to make headlines.

2014 included a few mammoth funding rounds for big-name startups like Uber and AirBnB. AirBnB raised nearly $500 million last year, while Uber had multiple rounds totalling over $2 billion through the course of the year. Those companies sport huge valuations and attracted a ton of investor attention. For the little guy entrepreneur, that kind of funding simply isn’t achievable, it’s easy to step back and think, “is this where all the VC money is going?

But just because those big names dominate the headlines doesn’t mean that new companies aren’t getting funded—it’s just that their funding rounds tend to be measured in millions, which is easy to overlook when a few big names are raking in hundreds or thousands of times more. In fact, analysts predict that a trend away from those big companies will now follow, so that money will be more dispersed around small startups.

Regardless of how it plays out, there is ample money being moved for new companies to get ahold of. The SF Bay Area is the clear leader in Venture Capital investment. Whether you’re talking about number of companies funded, number of exits achieved, raw funding provided, it’s clear that the Bay Area is the place to be for entrepreneurs.

The New Bubble Scare

Recently, the hot topic for VC articles has been to compare current VC trends to the late 90s dot com bubble. That’s because a whopping $48 billion dollars of venture capital investment money poured into companies last year in the United States. The question on everyone’s mind is “can that growth be sustained?”

Well, I won’t pretend to be omniscient or clairvoyant. The consensus seems to be that we have a few good years left, but it’s mostly just question marks after that. From an entrepreneur’s perspective, the long-term changes shouldn’t be as much of a problem. Whether or not there is a limit on how long these conditions will last shouldn’t really change your behavior—the time to act is now, and the resources are bountiful.

Internet and mobile startups are the core of the hot-VC trend. Recent success stories prove that despite the 1 billion apps published so far, there are lots of unexplored functions and business models that can bring in users and revenue. The demand for innovative apps has not decreased. In fact at a global market level, there are more new smartphone owners every year.

In short: the SF Bay Area venture capital community is absolutely pouring money into the creation of mobile apps. Bring them your ideas, bring them your pitches, and there are opportunities to be discovered.

Of course, before you set out to make connections and get in front of the VC’s, you’ll need to spend some time building prototypes and pitch materials. For more info about pitch preparation, you can take a look here, or simply reach out to the Software Developers Inc business strategists at 408.802.2885 or at team@sdi.lafor a free consultation. If you’re in the south bay, you can even drop by our Saratoga headquarters to chat.

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