Subscribe to the ForsythGroup feed ForsythGroup on Facebook ForsythGroup on twitter

Archive for February, 2016

Mobile Internet Exits hit $100B – But is this the end of growth in this sector?

Posted on: No Comments

The latest analysis from Digi-Capital shows that Mobile internet exits hit $101B in 2015, which is fantastic news for the industry. However, looking back on our last analysis of Digi-Capital’s Mobile Internet statistics from q4 2015, it is clear that, while there is still plenty of life and money in the industry, the unprecedented growth that we were seeing before is no longer prevalent, with consolidation, and the odd failure, being the order of the day.

This is not to say that there is an impending bubble. In fact, this could be a good thing. When valuations are skyrocketing, it can be disconcerting, as it can seem like people are hopping on a bandwagon, rather than valuing companies at levels that more truly reflect their worth. In the latest analysis, there is reference to four mobile unicorns that have fallen below the $1B valuation mark, showing that some companies were indeed overvalued, and are now struggling to justify that valuation. Despite that caveat, however, the report also states that 102 mobile unicorns added $130m value in the fourth quarter of 2015, making the combined value over $1T for the first time.


One interesting difference between the two reports, is the different sectors of mobile internet that saw Exits. While both saw a large spread of different areas, the main sectors in the year up to q4 2015 were messaging, games, and Social networking (with messaging given a large boost from Facebook’s acquisition of WhatsApp), with the three sectors making up almost 2/3rds of exits. The latest figures show that mCommerce (just 1% in the previous figures we analysed) and Travel/transport (1.3%) made up almost half of exits. This perhaps shows that the Messaging, Games and Social Networking spaces are saturated at the top end, whilst there is still seen to be room for growth in mCommerce and travel. Part of this might be due to the broad nature of mCommerce, which differs from Social Networking or Messaging as there are countless different uses for mCommerce, whereas people will only use a certain amount of messaging or Social Networking.


Digi capital investment returns 2 Digi-Capital-Mobile-Internet-Stocks-LTM-to-Q4-20152-1024x576

The mobile internet stock index of 92 publicly listed companies shown in the Digi-Capital report shows that it was broadly flat in 2015, with navigation companies growing by 48% and Entertainment shrinking by 31% being the biggest variables. Overall, value was down 0.5% over the year, which again tallies with our analysis that it has been a year of consolidation rather than massive growth. It will be fascinating to see how 2016 turns out.

Forsyth Group’s Brett Putter Gives presentation at StartupBootCamp

Posted on: No Comments

Our Managing Partner for Emerging Growth Brett Putter gave a talk on “Building the right team for your high growth startup” on Tuesday night, for StartupBootCamp’s cohort of insurtech startups. This was followed by a Q&A session, in which the knowledge-hungry founders picked Brett’s brain, asking questions about how to give out equity, how to hire an ideal co-founder, and how to get an advisor to become a full-time employee.

Brett gave a number of great pieces of advice to the founders present, with 5 of the best summed up here:

1. Hire slow, fire fast – As a startup, your early team is so important that you don’t want to make mistakes, and if you do, you need to rectify them quickly.

2. Be flexible – As a startup you have an opportunity to react far quicker and change direction, as you aren’t constrained by the rules or traditions of a corporate.

3. Think about the balance of your team – If everyone is outgoing, it might be best to hire somebody more circumspect, and vice versa.

4. Cultural fit vs sales capability – When confronted by the decision to hire the very best salesmen, or somebody who fits your company culture better, always choose the cultural fit.

5. Mentors aren’t forever – Sometimes a mentor or advisor can be good for 6-12 months, then their value could diminish.



Contact Us

United Kingdom
47 Barnes High Street
SW13 9LN
United Kingdom

Telephone: +44(0) 20 8878 9189

United States
118 Horizon View Drive
Vermont 05466
United States

Telephone: +1 802 448 5955

Twitter: @forsythgroup

Facebook: Forsyth Group