We had an interesting panel in Mobile Apps Conference in CTIA in this week. We talked about business models and funding for mobile apps business. I was there with some great mobile entrepreneurs and Tarang Shah from Softbank Capital. Tarang pointed out that most of mobile apps companies are not really relevant for traditional VC’s. VC’s focus more on those companies that can make something disruptive. It was nice to see a common understanding that new funding models, like Grow VC, are needed in this space.

Mike Merrill from SmartPhone Technologies had a good comparison. This year for mobile apps is like 1851 in California, two years after the gold rush. Mike wanted to remind that not so many gold miners made big money, but there were many other people like Levi Trauss and Wells Fargon founders that created then a great business. We can also say it was an important time for the development of California. Now we live similar times in mobile.

Only the market can decide, which mobile apps companies are successful. You must make an app, launch it, and improve it. And you must be capital effective. It also makes sense take funding step by step. It is the only way avoid too high dilution.

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Tags: Business model

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