Since many venture capital firms use Zuput for Venture portfolio management, and due diligence research prior to investing we get a lot of questions from entrepreneurs on aggregate data that helps them target investors better.
Our platform features over 1.5 Million startups from over 350 categories, so we have extensive proprietary data that can help guide decisions for entrepreneurs.
There are over 23,000 mobile app companies worldwide in our database. Of these over 22,000 are privately held, so for the purposes of this post I eliminated large app companies such as Google and Facebook.
Of the over 22K, 1893 (8.57%) have raised some form of money from investors, whether angel, venture or some form of institutional capital. Compared to SaaS ventures (10.14%) that raised capital this is lower, but compared to eCommerce startups (4.31%) this is significantly lower.
We correlated data from other sources such as App Annie and app stores, we can roughly review the # of downloads for these apps, which is a proxy for # of users but not an accurate one.
The data below shows the distribution of these companies post funding.
Since we get data from companies typically 3-6 months after they actually raise the capital, the graph above is a great proxy for when they raised funding. Most companies raised money when they were between 250K to 1 Million downloads. Over 80% of companies that raised with more than 5 Million downloads were in China, and over 80% of companies with fewer than 50K downloads who raised capital were from the US.
I’d love your comments on if you have been able to raise money for your mobile app. Please comment below and dont forget to share this post if you like it on Twitter.