Digi-Capital analyst Tim Merel recently released a 500-plus-page report on the state of mobile Internet investment, and the results may surprise even the savviest tech industry observers. According to Merel, there are more than 20 billion-dollar mobile Internet companies, with several of them posting mind-boggling growth rates.
“Mobile Internet first mover advantage is more extreme than in any other technology market in history,” Merel said while noting that there is a “direct relationship” between the amount of value created on an annual basis and the total value accrued in a company over time. “First movers have delivered unprecedented value at an unheard-of rate, so dominating quickly is worth its weight in gold.”
For an example of what Merel is saying, look no further than WhatsApp. The incredibly popular instant messaging application was recently acquired by Facebook for a reported $19 billion. That pegs WhatsApp’s growth rate at a whopping $4 billion per year, which translates to $11 million in increased shareholder value per day.
Other members of the mobile Internet industry’s billion-dollar club include Uber, Dropbox, Gungho, Spotify, Instagram, Airwatch and and CyberAgent. Merel’s analysis also notes that about half of the companies on the list were launched in Asia, solidifying the continent’s rise as a major industry player.
If you’re part of a mobile app development company in New York City, these trends shed light on an important aspect of successful strategies. Whenever you can get a competitive advantage, you should exploit it quickly and to the greatest possible degree to give yourself the best chance at building rapidly appreciating value.
Independent mobile app developers can also take heart in the fact that many of the companies on Merel’s list began as small ventures powered by a select group of developers and programmers. The tech industry continues to offer enormous potential for rapid and dramatic success — a trend that’s not likely to change anytime soon.Tags: airwatch, billion dollar, buyouts, cyberagent, dropbox, facebook, gungho, instagram, mobile app value, nyc tech, spotify, tech investor, tim merel, uber, valuations, whatsapp