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24/07/2014 by

Mobile Tectonics: The Next Billion Dollar Startups?

The rapid revolution of the mobile ecosystem makes VCs aware: mobile tectonics is their focus to scout the next game-changing startups.

Mobile Tectonics: The Next Billion Dollar Startups? Coining mobile trends, a story by pro speaker Igor Beuker

The mobile tectonics roadmap helps VC Sequoia Capital to drive superior growth.

Indeed, Facebook bought WhatsApp for $19 billion in cash and stock earlier this year. Surprised that WhatsApp is part of Sequioa’s portfolio?

Discover more about mobile tectonics and coining mobile trends.

Discover the insights here.

Sequoia Capital: The Mobile Tectonics Roadmap

Their roadmap is clear. When it comes to mobile tectonics, there are three layers. Layer number one is the foundational, the bottom. Layer 2 is the horizontal, the middle. And layer number 3 is the vertical, the apps layer at the top.

Mobile Tectonics: The Next Billion Dollar Startups? Story and trends by pro speaker Igor Beuker.

Some mobile companies that are in the Sequoia portfolio already? How about AdMob, Chartboost, DropBox, WhatsApp, and Square?

Tim Lee
, a partner at Sequoia Capital stated:

Ten years ago, the foundational layer was the only one you had to worry about. But these days you need to worry about all three.

Lee also said the app ecosystem will total about $30 billion in 2014, with another $30 billion being spent on mobile advertising. But that $60 billion estimation is only one part of the puzzle.

“But both of these are dwarfed by what we like to call ‘on-app commerce,’” Lee said, noting that in his estimation, that market by itself will total $100 billion, if not bigger, in the very near future.

Power Apps & Other Mobile Trends

When Facebook paid $19 billion for WhatsApp, many of us were suddenly mobile ready.

Mobile Tectonics: The Next Billion Dollar Startups? Story by keynote speaker Igor Beuker

Finally we understood mobile is the next big gateway to: friends, content, brands, community and commerce.

Tim Lee offered up Evernote as key example.

Instead of just pursuing a vertical strategy of being a note taking app, Evernote created the Evernote App Center that enables other apps to build on top of Evernote — thus creating a horizontal platform strategy as well as a vertical app strategy in a strategic one-two punch.

Other examples of other company’s doing it right, according to Lee, include Kakao Talk, a popular chat app in South Korea, which he said made shrewd “horizontal” platform move.

Also, WhatsApp, which Lee said is a brilliant example of a purely vertical app that made the wise decision to charge its over 500 million subscribers $1 dollar a year for the honor of using the mobile messaging play.

While some companies Lee pointed to incorporate one or more of the “mobile tectonics” equation, Apple includes all three layers.

And also Facebook, which Lee said is rapidly maturing from a purely vertical play to a multi-faceted operator who continues to show massive growth through acquisitions and in-house app development.

Facebook is an interesting story, Lee said, because just a few years ago it was looked at as a pure vertical.

But then Mark Zuckerberg and company added a horizontal layer, with Mobile App Install Ads, Facebook Connect, and other products.

This layer now accounts for more than 50 percent of their business.

Lee is watching the emergence of disruptive technology very closely. “We’re at the center of a number of burgeoning industries,” he said. “It’s an exciting time to be in mobile.”

My Opinion

For a decade mobile was not seen as the next big gateway. We looked at mobile in one-dimensional ways. Like most of us are stuck in linear thinking.

But luckily Sequoia Capital opened up its 3 layered mobile tectonics roadmap for us. I loved their insights, very actionable.

With mobile programmatic advertising on the rise, mobile advertising will also show superior growth.

And I believe that SoLoMo App Foursquare could play an important role in the future.

Smart brands, media owners and VCs have all embraced mobile.

Because mobile is our first screen and our second brain.

What About You?
Have something to add to this story? We all get smarter from peer discussions, share your ideas in the comments.

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About the Author
Igor Beuker is an acclaimed trendwatcher & pro speaker, serial entrepreneur, marketing consultant and board member at several disruptive media, technology and entertainment firms. Book Igor as keynote speaker, follow Igor on Twitter or contact him via LinkedIn.

Source: Venturebeat


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