iFund manager KPCB sees vibrant future for iPhone, iPad app firms

“Startup firms that make games and other applications for Apple Inc. devices are increasingly being wooed by companies looking to buy an instant foothold in the rapidly growing mobile market, said the manager of a fund that invests in smartphone app makers,” Poornima Gupta reports for Reuters

“The mergers and acquisitions market in the mobile space will be active over the next several years, said Matt Murphy, who manages a $200 million iFund investing in iPhone and iPad tablet app makers for the storied Silicon Valley firm Kleiner Perkins Caufield & Byers,” Gupta reports. “‘A number of our companies have gotten acquisition offers in the last six months and I assume that will continue to go on,’ he told Reuters in an interview on Wednesday.”

“The well-known iFund has invested in popular app companies such as game designer ngmoco, social news aggregator Flipboard, texting provider Pinger, and music discovery service Shazam,” Gupta reports. “Ngmoco, one of its early investments, was acquired by Japanese company DeNa for $403 million last October. Kleiner Perkins made about $100 million from that sale.”

Gupta reports, “Despite that rich payday, Kleiner Perkins and the companies themselves are less than eager to accept acquisition offers, given that Apple’s platform is now reaching over 100 million consumers through its three blockbuster devices. Murphy said it may be too early to sell as the companies are now able to generate revenue faster because of Apple’s massive — and growing — reach.”

Read more in the full article here.

Related articles:
KPCB doubles iFund for iPhone, iPod Touch and iPad to $200 million – March 31, 2010
KPCB-backed iPhone game dev Ngmoco raises $25 million, acquires Freeverse – February 24, 2010
KPCB: Apple iPhone will ‘absolutely be the driver of the post-PC world’; 1,000 apps ready-to-go – June 06, 2008
KPCB begins funding companies with $100 million iFund for Apple iPhone, iPod touch development – May 27, 2008
$100M iFund: KPCB’s first month expectations for iPhone dev business plans exceeded in 36 hours – March 12, 2008
KPCB launches $100 million iFund for Apple iPhone application developers – March 06, 2008

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