Report: Mobile venture financing on the upswing

According to a new report issued by M&A advisory services provider Rutberg & Company, private wireless companies announced $2.7 billion in venture financing in the first six months of 2007, a 9 percent increase over the first half of 2006. Rutberg reports 30 private companies announced rounds of $20 million or greater in 1H07, with  illustrative late-stage subsectors attracting investor focus including mobile device management, service management and delivery platforms, enterprise Wi-Fi equipment, enterprise sales/field force applications, and healthcare monitoring systems. In addition, 91 private start-ups announced financing rounds of less than $10 million, which Rutberg said highlights the emergence of a new set of private companies, particularly in the consumer mobile applications market. Illustrative early stage subsectors include mobile VoIP, mobile social networking, mobile video UGC, mobile content sharing, mobile shopping, mobile advertising, mobile video production, and voice-based search.  Ad-based mobile games and book content also generated VC heat. 

Sectors with sharp decreases from 1H06 to 1H07 include carrier infrastructure and carrier applications, as previous years represented substantial venture focus on carrier-based mobile data software and services. In all, carrier applications accounted for $233.1 million in investment over the first half of 2007--consider that in July 2006, carrier application investment totaled $93.5 million alone, compared with $10 million in July 2007. Consumer applications accounted for $264.2 million in investment in 1H07; in July 2007, consumer apps registered $48.1 in financing, compared with $39.8 million in July 2006.

For more on the Rutberg and Company report:
- contact the firm at www.rutbergco.com