In the past two years, generalist venture capital firms have significantly reduced their focus on consumer mobile apps, shifting their attention to enterprise SaaS and AI startups. For example, Andreessen Horowitz (a16z), once a major player in consumer tech, has scaled back its mobile investments and reallocated capital toward AI ventures.
As a result, only 6% of the investments made by the top 100 VC firms in 2024 went into consumer/mobile startups—half the share from just two years ago.
However, several dedicated and contrarian investors still actively fund mobile apps. These firms recognize opportunities in niche consumer categories, new social experiences, and emerging mobile-first business models.
One of the key trends in app venture capital is the strong rebound in late-stage funding. Investments in Series B-D rounds surged by 83% year-over-year, driven by a few mega-rounds exceeding $100M.
This trend suggests that VC firms are doubling down on established, high-growth mobile startups rather than spreading capital across many early-stage bets.
By contrast, early-stage funding remains bottlenecked—for every five seed-funded mobile startups, only one secures a Series A round. This funding gap makes it crucial for mobile app founders to demonstrate strong traction, retention, and monetization strategies early on.
Top app investors seek mobile apps that provide innovative solutions to real-world problems. They look for unique features, user-friendly design, scalability, and evidence of market demand. Strong metrics such as user growth, engagement rates, and revenue streams are also crucial, as they indicate the app's potential for success.
Startups should clearly articulate what sets their apps apart and why they are uniquely positioned to solve significant pain points. Providing data to support claims, showcasing team expertise, and presenting concrete metrics such as user growth and revenue streams help build investor confidence. Transparency and preparedness to provide detailed information about the app, business model, and financials are also essential.
The team is a crucial factor in attracting investors. Investors invest in people as much as in ideas. A strong team with relevant expertise and experience demonstrates the capability to execute the vision effectively. Highlighting the team's accomplishments and skills can significantly enhance investor confidence.
Demonstrating traction is critical because it provides tangible proof that the app is gaining users and generating revenue. Metrics such as user growth, engagement rates, and revenue streams help investors assess the app's potential for scalability and long-term success, making them more likely to invest.
