Mobile Internet Investment Review Q2 2014

According to Mobile Internet Investment Review over the last 12 months, mobile-focused mergers and acquisitions are up from 5X and investment is up 2.5X from the previous year, reports Venture Beat. The report includes  USD 47 billion in mergers and acquisitions which was USD 8.9 billion last year and USD 14 billion in investments as comparison to USD 5.4 billion in the previous year.

Digi-Capital’s Tim Merel, who authored the company’s recently-released Mobile Internet Investment Review, said that “Removing the blockbuster Facebook-WhatsApp deal from the M&A record reveals a sellers market across sectors, Of the remaining $28 billion, $13.8 billion was in Q2 2014, continuing the long term growth from $1.8 billion in Q2 2013.”

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Except USD 19 billion WhatsApp deal, companies spent USD 4.1 billion in acquiring other messaging app, USD 5 billion acquiring games, USD 3 billion acquiring music, USD 2.8 billion buys Food & Drink, while finance, advertising and marketing were at USD 2.3 billion.

Apart form this M & A, there’s ongoing massive investment as well, Merel said.

“Mobile internet has seen more than $14 billion invested in the last 12 months,” he told VentureBeat via email. “Hot sectors such as travel/transport, utilities, and mCommerce have led the charge, but even smaller sectors are seeing hundreds of millions of dollars.”

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Over the last 12 months USD 14 billion invested in mobile sapce as: USD 3.1 billion on Travel/Transport, which is followed by around USD 1.5 billion each in utilities and mCommerce, Games received over a billion dollars, while the messaging, advertising and marketing have an additional USD 700 million worth of investment.

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By analyzing all the investment and spend, Digi-Capital was able to classify 18 different mobile internet sectors in a “mobile internet investment quadrant,” Merel says, there are still strong exit opportunities in lifestyle, medical, news, and social networking apps.

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Hidden gems includes Advertising/Marketing along with games, navigation and messaging, which are expanded in the number of startups over the past few years. Exit opportunities, include mobile commerce, business apps, education, and wearables, while the major opportunities having more investment,  Merel said.

Merel acknowledges, “as a numerical analysis it isn’t saying any sector, company or investment is good or bad, and there could be great successes from any sector.”

To contact the author, email at sujata@iamwire.com.

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