The market for mobile app development is expected to grow from $25.2bn in 2013 to $92bn in 2018 according to Ridgecrest Capital Partners latest research study (which includes an honorable mention of CodeNgo). Backed by data from among others Vision Mobile, Ridgecrest lists a number of companies that have received VC funding in the space, and they also list companies that are likely to be the consolidators in the industry.

Ridgcrest also points to the complexity of being a mobile app developer, a concept that readers of this post are likely to not be a stranger of:

Mobile complexity (Source: Ridgecrest Capital Partners)

So how big of a problem is the complexity? Well, where there is opportunity, there is talent, and talent deals well with complexity. Asymco points out in a recent article that “Apps are becoming the universal medium for entertainment and iTunes the universal distributor. Talent is catching on to this faster than those who manage and distribute their work. The inevitable result will be a mass migration of talent away from the established content industries.”  While we disagree on iTunes being the universal distributor (surprise), especially given Asymco’s love affair with Apple, their main point on the rise of apps is quite compelling. Apps are consuming more and more of consumers time, and has taken over for where other content types, like music, has been faltering. Bring on the talent.

We believe the mobile applications space has reached an inflection point and thus will gain increased interest on both the funding and M&A front.

– Ridgecrest Capital Partners

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