Mobile apps are fast becoming one of the top options for new investors to expand their portfolio. As of Jun, it is reported that Android users were downloading more than 1000 apps per second at a rate of over 2.4 billion apps per month. App developers are also pushing new apps to the play store at an alarming rate (appx. 3000-4000 new apps are published per day!) to try and cash in on this fast expanding market.
Apps may range from addictive ‘Billion dollar’ games like Candy crush and Fortnite to sophisticated tools for everything from video editing and road navigation to fitness trackers and finance management. No matter the genre, or whether it’s for the Apple or Android platform, behind each app is a company whose business model could be a productive complement to an investment portfolio.
Most start-up software companies remain privately held, so despite the desire to invest in them, it might be difficult. Many will ultimately go public, so keep an eye out for Kickstarter campaigns, IPOs and acquisitions or if you see potential, contact them directly to discuss investment options.
Consider the market, the app’s reach and availability on multiple platforms. Apps that reach only niche markets are less likely to be lucrative investments. Think broad genres when considering investing in an app. A solid app investment is usable by iPhone and Android platforms and on multiple devices, including phones, tablets and computers.
The app market can be somewhat intimidating, especially to novice investors, due to its newness and the volatility of software development companies. Remember, even as industries and technologies emerge and Apps are developed and launched at mind-boggling rates, the stock market will always be bulls and bears.
Always keep business models and promising qualities in mind when investing in the young yet promising mobile app sector.
Below are some apps by South African App development company, JBC Interactive, who is currently looking for investors: