The question has been asked about whether there has been a business that has come to my attention this quarter that I’d be inclined to invest in. While I continue to be intrigued by the number of startups I come across I generally find myself confounded with questions about how they actually aim to survive. One such company I’ve become interest in is GrowMobile. While this company is admittedly founded by a friend of mine I find it compelling for a number of reasons.
For one, even for a technology neophyte like myself the business concept and value proposition are clear and simple to understand. GrowMobile is a value-add intermediary that helps large scale advertisers acquire blocks of mobile ad space from the inefficient and highly fragmented ad distributor networks that can’t adequately service them. By contracting large blocks of ad space and dispersing it to smaller distributors, GrowMobile creates efficiency and cost savings for its advertisers. Not only is the market space extremely deep (and growing) but GrowMobile’s business has a legitimate ‘secret sauce’ in its technology that produces better performance tracking data than its competitors can offer. The company also has clear cut results from its single revenue stream (again, simple), as sales growth has been rampant and it has obtained some major household names as clients, which eliminates a lot of the speculation about the product’s legitimacy.
Perhaps one of the greatest sources of comfort I have in this company is the team behind it. The founding team has the right components: 1) a highly capable business development head, 2) a product guru who understands the industry inside and out, and ) a technical specialist capable make the vision a reality. To reinforce the business team they also have high quality backing – seed funding from a legitimate VC fund. In all, GrowMobile seems to have a great business idea with a unique competitive advantage in an expanding market. With a strong team backstopped by what’s likely highly competent capital, it seems like they have a lot of runway in front of them.