This document provides an overview of mobile app development and investment options. It discusses the massive size and growth of the mobile app market. It then covers the main app development options of native, web, and hybrid apps. Finally, it discusses tactics for investing in mobile apps, including where to look for investment opportunities, challenges in valuation, and ways to de-risk investments.
2. HELLO!
‣ iOS developer at Mind Fund Studio
‣ Previously worked in Venture Capital at AAIC Ventures
‣ Originally a suit wearing management consultant in London (for 5 years)
CHARLIE MORRIS
3. AGENDA
‣ Brief overview of the mobile app market
‣ Understanding your app development options
‣ Investment tactics: How to get started with app valuation and investing in mobile
apps in Hong Kong
10. ‣ Paid app
‣ In app purchases (often associated with
"Freemium")
‣ Subscription model
‣ Advertising
- Direct advertising (banner / full page)
- Indirect (sponsored content)
4 MONETIZATION METHODS
MOBILE APP DEVELOPMENT AND INVESTMENT
11. ONLY 9% OF IOS
DOWNLOADS ARE
PAID...
MOBILE APP DEVELOPMENT AND INVESTMENT
Source: Statista 2015
13. IN APP PURCHASES ARE KEY
MOBILE APP DEVELOPMENT AND INVESTMENT
Source: AppTopia
Note: More case studies at http://www.bluecloudsolutions.com/blog/13-top-grossing-apps-revenue/#
14. Games is the
largest genre
on the Apple
app store
MOBILE APP DEVELOPMENT AND INVESTMENT
Source: Statista 2015
15. IT IS A HUGELY COMPETITIVE MARKET
MOBILE APP DEVELOPMENT AND INVESTMENT
Source: LukeW Ideation and Design
17. 1. What platform should you develop for?
2. How should you develop for your chosen platform(s)?
3. Should you build it yourself or get help?
3 KEY DEVELOPMENT QUESTIONS
MOBILE APP DEVELOPMENT AND INVESTMENT
19. ‣ iOS
‣ Android
‣ Windows
‣ Blackberry
‣ FireFox OS
‣ Sailfish
‣ Tizen
‣ Ubuntu
‣ Others...
MOBILE APP DEVELOPMENT AND INVESTMENT
APP PLATFORMS
20. MOBILE APP DEVELOPMENT AND INVESTMENT
‣ Smartphone
‣ Operating system
‣ Marketplace (App Store, Google Play, etc)
‣ Payment infrastructure
‣ Additional Services (iCloud, Game Center, etc)
‣ Marketing tools
‣ Developer tools
‣ Integration with other devices (IOT, wearables, iBeacon, etc)
ECOSYSTEM CONSIDERATIONS
21. ‣ C level executives are more likely to own an iPhone
‣ Finland has a higher propensity of Windows Mobile
‣ Africa and Latin America have a deeper penetration of Blackberry
MARKET CONSIDERATIONS
What does your target market look like?
MOBILE APP DEVELOPMENT AND INVESTMENT
22. WHAT ABOUT HONG KONG?
MOBILE APP DEVELOPMENT AND INVESTMENT
‣ Mobile:
24%- iOS
74% - Android
2% - Other
‣ Tablet:
82%- iOS
17% - Android
1% - Other
Source: ComScore
23. 2. HOW TO DEVELOP?
MOBILE APP DEVELOPMENT AND INVESTMENT
24. APP TERMINOLOGY
MOBILE APP DEVELOPMENT AND INVESTMENT
WEB APP NATIVE APP HYBRID APP
‣ Mobile-optimized
webpages that look like
an app
‣ Accessed through the
phone browser
‣ Not on any app store
Built in native code for a
specific operating
system
Downloaded from an
app store
Can use all device
features
‣ Built in web languages
for use on multiple
operating systems
‣ Downloaded from app
stores
‣ Can use all device
features (kind of)
25. WEB APPS
MOBILE APP DEVELOPMENT AND INVESTMENT
‣ Refers to websites that behave like applications
‣ Advantages:
- No need to install app
- Easy to share and organically spread
- Instantly updated on the server-side
‣ Disadvantages
- Not on the app store... is it even a "real" app?
- Device capabilities - push notifications, GPS, camera, etc - are unavailable
Note: iOS 1 had no app store; this is all we could do then!
26. MOBILE APP DEVELOPMENT AND INVESTMENT
NATIVE APPS
‣ Apps built using the toolset that Apple or Google
provide
‣ Advantages
- Able to use all of the device’s capabilities
- High performance
‣ Disadvantages
- Need to start all over to build app on the
other platform
27. ‣ IDE (integrated development environment): Xcode
‣ Languages: Objective C / Swift
‣ Testing: Simulator / device, Testflight
HOW DO YOU BUILD IOS NATIVE APPS?
MOBILE APP DEVELOPMENT AND INVESTMENT
DEMO
28. HOW DO YOU BUILD ANDROID NATIVE APPS?
MOBILE APP DEVELOPMENT AND INVESTMENT
‣ IDE: Android Studio
‣ Languages: Java
‣ Testing: Simulator / device
29. ‣ Camera
‣ GPS
‣ Accelerometer
‣ Microphone / Speaker
‣ Local storage
‣ Vendor APIs
‣ Touch Gestures
MOBILE APP DEVELOPMENT AND INVESTMENT
TECHNICAL BENEFITS OF NATIVE
32. ‣ Hybrid development combines the best (or worst) of both the native and HTML5
worlds
‣ It is a web app, primarily built using HTML5 and JavaScript, that is then wrapped
inside a thin native container that provides access to native platform features
‣ PhoneGap is the original and popular container for creating hybrid mobile apps
WHAT IS HYBRID DEVELOPMENT?
MOBILE APP DEVELOPMENT AND INVESTMENT
33. HOW DO YOU BUILD HYBRID APPS?
‣ IDE: Text editor of choice / terminal
‣ Languages: Javascript
‣ Testing: Chrome / device (depending on framework)
MOBILE APP DEVELOPMENT AND INVESTMENT
DEMO
34. ‣ The beautiful, open source front-end SDK for
developing hybrid apps
‣ Creator makes it easy to rapidly build Ionic mobile
apps, with a drag-and-drop interface and real code
exporting
‣ Can be tested on the Ionic app in iOS and Android
IONIC - CURRENT BOSS OF HYBRID
MOBILE APP DEVELOPMENT AND INVESTMENT
35. ‣ Any sort of online component requires a backend service (API)
‣ This backend could be custom built: Node.js, Ruby on Rails, PHP, Python,
ASP.NET
‣ Or you might be able to use a Backend as a Service provider: Parse, Firebase
‣ Or perhaps all you need is integration with an existing service provider: Facebook,
Twitter, Dropbox
MOBILE APP DEVELOPMENT AND INVESTMENT
BRIEF WORD ABOUT THE BACKEND
38. ‣ Shoutem
‣ Mobile Roadie
‣ Mag+
‣ Adobe DPS
‣ Como
‣ GoodBarber
‣ AppPresser
‣ AppYourself
AN INCREASING NUMBER OF WYSIWYG PLATFORMS
MOBILE APP DEVELOPMENT AND INVESTMENT
‣ AppMachine
‣ Mobincube
‣ BIZNESSAPPS
‣ MobAppCreator
‣ AppMakr
‣ Apps-Builder
‣ AppyPie
‣ IBuildApp
‣ BuildFire
‣ Appery.io
‣ Gamesalad
‣ MobiCart
‣ app.cat
‣ AppNotch
‣ EachScape
‣ Zoho Creator
39. ‣ Online courses:
- Codecademy
- Treehouse
- CodeSchool
- BitFountain
- Ray Wenderlich (iOS)
‣ Real life classes:
- General Assembly (*wink*):
DIVING INTO PROGRAMMING
MOBILE APP DEVELOPMENT AND INVESTMENT
40. ‣ Agencies in HK:
- Mind Fund Studio (*wink*)
- Altitude Labs
- 42 Labs
‣ Freelancers:
- Locally (check out co-working spaces)
- Globally (Crew, Upwork, Freelancer, etc)
BUYING DEVELOPMENT SKILL
MOBILE APP DEVELOPMENT AND INVESTMENT
Reliable
Expensive
Unreliable
Cheap
43. WHAT TO LOOK FOR?
MOBILE APP DEVELOPMENT AND INVESTMENT
‣ If pure software:
- Exert extreme caution - easy to replicate
- Look for technical sophistication and prowess
- Look for exceptional marketing skills
‣ Hardware meets software is a local strength
- Insight robotics, DJI, Snaptee
‣ Hardware meets software meets logistics meets crack marketing... the dream
44. ‣ Co-working spaces: Blueprint, Cocoon, Garage Society, Paperclip, GoodLab,
Cyberport, Metta, etc
‣ Universities: HKUST, HKU, etc
‣ Crowdfunding websites: Investible.vc, EastFounder, etc
‣ Accelerator programs: Nest, DBS, Cyberport, Blueprint, etc
‣ Events: Rise, FinTechHK, Startup Weekend, Hackathons, etc
WHERE TO LOOK?
MOBILE APP DEVELOPMENT AND INVESTMENT
45. ‣ Technical audit:
- How can you gauge degree of sophistication?
- Who can you trust to evaluate the technology?
‣ Developer commitment:
- High demand for developers and low supply
- Very fluid industry
CHALLENGES
MOBILE APP DEVELOPMENT AND INVESTMENT
46. ‣ Analysis of revenue traction over time and overall profitability of the business
model:
- User growth is hugely speculative
- App usage is similarly speculative
‣ Tangible assets?
‣ Previous rounds?
VALUATION
MOBILE APP DEVELOPMENT AND INVESTMENT
47. ‣ Tranches investment offer; offering a tiered incremental investment stream based
on the owner executing to milestones correctly
‣ Backing experienced (ideally successful) founders
‣ Obtaining character references
DE-RISKING
MOBILE APP DEVELOPMENT AND INVESTMENT
48. THE MALE OR FEMALE APPROACH?
MOBILE APP DEVELOPMENT AND INVESTMENT