The Investor’s View: Is The App Boom Over?
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Lately, in the entrepreneurial and tech-centric media, there’s been some discussion on whether the app boom days are over, especially in light of the ever-climbing CAC costs reported by tech startups. We asked investors based in the Middle East, from angels to VCs, to talk back and give us their views on whether startups in the app space still have a chance to make it (and get looked at seriously for capital).
THE Q What is your opinion on the idea that the app boom has already gone through a life and death cycle, and that it’s now an overly optimistic (and unlikely) area for entrepreneurs to succeed in?
“It has not gone through a life and death cycle. The market is closer to maturity than it was in the past few years, but there will always be room for innovation in apps, albeit in a more crowded market with exponentially decreased barriers to entry. Mary Meeker’s 2012 Internet Trends report gave a huge boost in the credibility of mobile app investment, and I would say the investment frenzy spurred by that report is nearing a close with more informed investors reducing allocation in that direction. On the upside, investors now have more user data for apps and can isolate apps that have higher chances of success and thus allocate funds more wisely.”
Related: What Investors Look For When Evaluating Your Pitch: Chantalle Dumonceaux
Lately, in the entrepreneurial and tech-centric media, there’s been some discussion on whether the app boom days are over, especially in light of the ever-climbing CAC costs reported by tech startups. We asked investors based in the Middle East, from angels to VCs, to talk back and give us their views on whether startups in the app space still have a chance to make it (and get looked at seriously for capital).
THE Q What is your opinion on the idea that the app boom has already gone through a life and death cycle, and that it’s now an overly optimistic (and unlikely) area for entrepreneurs to succeed in?
“It has not gone through a life and death cycle. The market is closer to maturity than it was in the past few years, but there will always be room for innovation in apps, albeit in a more crowded market with exponentially decreased barriers to entry. Mary Meeker’s 2012 Internet Trends report gave a huge boost in the credibility of mobile app investment, and I would say the investment frenzy spurred by that report is nearing a close with more informed investors reducing allocation in that direction. On the upside, investors now have more user data for apps and can isolate apps that have higher chances of success and thus allocate funds more wisely.”
Related: What Investors Look For When Evaluating Your Pitch: Chantalle Dumonceaux
