Mobile startup exit dollars have dropped below new fundings, new research says


Dollars made from mobile startup exits — that is, acquisitions and IPOs — have dropped below the number of dollars earned from venture capital investments (per quarter) for the first time since 2013, says a new report from Digi-Capital.

The firm says that during the past 12 months investors put a record $50 billion into mobile startups.

Meanwhile, as Digi-Capital says in its quarterly mobile Internet report, returns from exits fell steadily to half of last year’s peak level. “So even before the current market troubles, there was already a huge pile of locked up cash waiting for an exit,” the firm said in an email to VentureBeat.

In early stage markets, more money is generally invested than comes back to investors, the report says. Exits began to heat up in 2012, with investors seeing more than three and a half times the money invested coming back as returns by the end of 2013.

The first half of 2014 saw an almost 3X ratio. Then something happened.

Digi-Capital says returns from exits fell below the amount of investments in Q2 2015. (This, however, excludes the outlier Facebook/WhatsApp deal, Digi-Capital says.) In other words, less money came back to mobile investors than went in during the last quarter.


“The mobile internet exit (M&A + IPO) market stayed in the low single digit billions of dollars per quarter from 2011 to mid-2013,” wrote Digi-Capital managing director Tim Merel in a blog post. “It took off in the second half of 2013, cresting at just over $25 billion by the middle of last year.”

He continued: “But then the market began to turn. Mobile IPOs started to dry up. While mobile M&A continued to grow until Q1 2015, it dropped dramatically in Q2 towards 2013 levels. Combined exits have now fallen steadily (excluding Facebook/WhatsApp) for 2 straight quarters, and are half what they were at their peak.”

0 Comment

Leave a Reply

Captcha image


  • 5300c769af79e

    Microsoft Thaws Windows 10 Anniversary Update Login Freeze

    As reported by PCWorld, Redmond on Wednesday announced the patch, available via an upgrade to the latest version of Windows 10.First discovered in early August, the login hitch, according to a Microsoft forum post, occurred when "a small fraction of users" had moved app information to a second drive.
  • 5300c769af79e

    GameGuardian 8.0.4 APK | Download Apps For Free

    In essence - similar popular GameKiller , for PC Artmoney, for Symbian Sorcerer, for VinMobayl Pocket Game Trainer and Pocket Game Spy (PGS).Gingerbread (2.
  • 5300c769af79e

    T-Mobile BlackBerry Priv Updated to Marshmallow

    At long last, for those waiting, Marshmallow is rolling out to the BlackBerry Priv on T-Mobile.This announcement is coming somewhat late, as it was first mentioned back in April that this update would be rolling out as a beta relatively soon.
  • 5300c769af79e

    Crafting an Online Strategy, Part 3: How to Get Paid for Your Wares

    ManageEngine OpManager, a powerful NMS for monitoring your network, physical & virtual (VMware/ HyperV) servers & other IT devices.Crafting an Online Strategy, Part 2: Where to Sell What You Make If you're just starting to sell your crafts or other handmade items online, one of the first decisions you'll need to make is how to accept payments from your customers.