Google Play and the App Store by Apple have a massive chunk of mobile apps in the market right now, with the total number standing close to 5 million. Several emerging technologies, such as AR, AI, and VR, are already getting into the mainstream across different industry sectors. The dynamic nature of these technologies makes it all the more hard for tech investors to fund the apps.
Let us take a quick look at the app development trends over the past few years:
- 2017– It was the year of the Blockchain, where it was seen how a virtual currency could actually change the world around us, instead of hearing about the benefits of a society run by it
- 2018– In this year, mobile app startup funding became applicable to business models in different sectors. P2P travel booking and eScooters became popular in 2018.
- 2019– Investors from various parts of the world started investing in projects that made Fintech reach underdeveloped and developing countries. A special interest was seen in combining the domain with disruptive technologies like AI and Blockchain. The grounds for app investment trends 2020 were set then.
Although a tech investor will always be willing to put in money into new mobile apps capable of making money, you will need to break down the business and show how app development will integrate with it.
Read Our Blog on: How to Get Investors for your Mobile App
Where will the tech community invest?
Tech innovation has certainly skyrocketed in the current year and certainly doesn’t seem to be slowing down. While the S&P 500 has been found to be struggling with a YTD daily total return of -0.32%, the tech-heavy stock exchange NASDAQ has gained 20% in the same period. As a result of the public health pandemic, there isn’t a single person who is not using technology to get his or her jobs done.
Some of the promising areas for tech investors are as follows:
- CleanTech- The Earth is gradually moving into an area where we will have no choice but to adopt only sustainable practices. Climate change as an issue is bigger than ever in 2020, and this movement is being guided ahead by CleanTech startups. CleanTech is the name for clean technology that spans across several industry verticals. It is a combination of solar energy, energy efficiency, water and waste management, and geothermal energy. There is no other segment that possibly has more scope for innovation than this one. Examples of a few CleanTech startups are Sono Motors, NorthVolt, Zolar, and Zeleros.
- EduTech- One of the sectors that has been heavily funded by tech investors in India is EduTech. From January to July 2020, VC investments have tripled from $310 million a year ago to $998 million. Investors have also focused on the less regulated segments such as test preparation and tutoring. The boost in mobile app development across education has been a positive consequence of the pandemic lockdown. A large part of the capital in this sector is in the hands of well known startups Vedantu, Unacademy, and Byjus.
- FinTech- Advances in mobile technology have led to explosive developments in the FinTech industry, which has also become a part of app investment trends 2020. It has been taken forward due to a tech-savvy millennial generation that makes use of mobile banking. Today, companies are also providing mobile stock services, digital loans, and e-commerce payment platforms. Robinhood. Bluevine and Brex are three of the fastest growing American companies here.
- IoT- IoT or the ‘Internet of Things’ refers to all devices connected to the World Wide Web, and this does not include just mobile phones, computers, and televisions. Now investment in IoT can become a little tricky for tech investors due to other companies being involved, including the ones manufacturing cloud computing solutions, software platforms to manage IoT, and consumer devices like fitness trackers. A few companies in this space are Armis Security, Cartesiam, and Eta Compute.
- Cyber security- It is only natural that with a huge number of connected devices in the market, security is an absolute necessity. However, cyber security technologies do not always include cyber security as part of their core business models. Beyond Identity, Cyble, and Darktrace are startups popular in this sector.
The year 2020 is clearly one for several investments on technology, and this has been further accelerated by the pandemic and global climatic conditions. Tech investors will literally be spoilt for choices this year.