In Q1 2014, VCs poured $931M into 125 mobile deals according to the latest report from CB insights. Over the past three quarters alone, U.S.-based venture capital investments to mobile & telecom companies have hit $3.13B across 425 deals. So it’s fair to say that the app market is still pretty hot for investors. While Q1 funding was a pullback from the prior two quarters where funding eclipsed $1 billion, but compared to the same quarter last year, funding to the sector was up 30% while deal levels increased 18%. Interestingly digital health tops mobile sector deal activity (seems like it’s just a matter of time before there’s a breakout hit there, even Facebook is getting involved with their acquisition of the Finnish Moves App). On the other hand, it was mobile communication apps that dominated the amount of funding (mobile messaging app Tango landed a huge $280M Series D round). A large cross-section of mobile industries received venture capital funding in Q1. Leading deal activity were mobile applications and platforms with a focus on health & wellness and the healthcare industries which combined to take 13% of all deals in Q1. Interestingly, seeded mobile digital health startups have had the hardest time raising follow-on investment. CRM and conferencing & communication each saw 7% of mobile deal share in the three-month period. Read more on the CB Insights website.
