The growing use of mobile computing has encouraged the development of new technology startups globally as entrepreneurs from New York to Tel Aviv to Berlin hopes to take their slice of the smartphone and tablet markets, the Financial Times reported. Global entrepreneurs are finding it easier and more affordable to establish free-standing enterprises as new mobile devices and the "cloud" used to support them have formed large tech markets for these entrepreneurs.
Supercell Chief Executive Officer Ilkka Paananen told FT, "Now the app stores have come along and all of a sudden it is possible to reach a billion consumers by just submitting your game to the app store." Supercell is a Finland-based games company.
The report said a lot of entrepreneurs are trying to imitate the success of firms like Supercell, which divested a 51% stake of itself to Softbank and GungHo Online Entertainment in a $1.5 billion deal. Another success story is that of Spotify, also a Scandinavian startup, whose value was recently pegged at $4 billion.
The report also featured the success achieved by the startup sector in Israel in 2013. Google acquired Waze, a mobile traffic app, for $1 billion, while Facebook bought data compression firm Onavo. Apple also purchased Primesense, a maker of sensors that control computers with the use of gestures.
These visible successes and the low costs that come with making apps for mobile platforms have introduced entrepreneurs to the young startup hubs of the world reminiscent of the enthusiasm for consumer internet firms at the height of the dotcom boom. Although that bubble popped easily, the report said concerted efforts are being undertaken in cities like London and New York to establish more lasting environments for startups.
In this regard, Silicon Valley is the leader in fostering an environment conducive to the next generation of online leaders. The report said other markets don't have the financing necessary to support young firms after their early-seed stages. Getting enough talented people is also another issue markets elsewhere face, the report said.
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