MOBILE ENTERPRISE

TRENDS
2015
Kevin Spain September 8, 2015

OVERVIEW
Mobile represents the next major technology
platform shift for businesses. Like the SaaS
platform shift, mobile will create tremendous
opportunities for enterprise-focused entrepreneurs.
We estimate that mobile enterprise will ultimately
represent an annual revenue opportunity for
entrepreneurs of at least $100 billion.
This report will review the current state of the
enterprise mobile market and will share our
predictions as to where this market is headed.

WHY MOBILE
MATTERS TO
ENTERPRISES

WHAT IS DRIVING GROWTH IN

MOBILE ENTERPRISE?

4
DYNAMICS
DRIVING
MOBILE
ENTERPRISE
GROWTH

SOURCE: Tech Pro Research, Pew Research Center, IDC

WORKERS LOVE IT

BYOD TAKES HOLD

MORE MONEY FOR MOBILE

THERES AN APP FOR THAT

Nearly half of workers state that their mobile device is very or

somewhat important for their work.

Businesses are increasingly allowing workers to use their own

mobile devices for work. 74% of organizations have or plan to
have bring-your-own-device (BYOD) policies in place.

Enterprise spending on mobility-related technologies is expected

to more than double over the next five years.

As mobile budgets grow, entrepreneurs are focusing more on

building mobile applications for business. As a result, there are
more apps available to solve a wide range of business challenges.

WHERE ARE
WE TODAY?

MOBILE ECOSYSTEM:
APPLICATIONS & ENABLERS
APPLICATIONS
Native or web-based
mobile applications that
are: (a) used by
businesses and (b)
valuable to users in large
part because of their
mobile functionality.
These applications may
also have a desktop
interface.

ENABLERS

&

Technology solutions
that help mobile
application developers
do their jobs more
effectively.

MOBILE ENTERPRISE
APPLICATIONS
Emergence publishes a landscape of mobile
enterprise application companies annually
Our 2015 mobile enterprise landscape includes 313
companies, up from 258 companies in 2014 and 95
companies in 2013.
The landscape is segmented by key application categories,
both functional and industry-related.

The landscape is segmented by key application

categories, both functional and industry-related.

MOBILE ENTERPRISE APPLICATIONS

LANDSCAPE 2015 ACQUIRED
EDUCATION

V
E
R
T
I
C
A
L

HEALTHCARE

REAL ESTATE/CONSTRUCT.

OTHER VERTICALS
TRANSPORTATION

KURADO

RESTAURANTS
HOSPITALITY
OrderAhead

RETAIL

MANUFACTURING

BANKING

GOVERNMENT

PRODUCTIVITY
CONTENT

H
O
R
I
Z
O
N
T
A
L

COMMUNICATION

TASK MANAGEMENT &

CALENDAR

MOBILE FORMS

EVENTS & CONTACTS

SALES, MARKETING & SERVICE

HR & RECRUITNG

ACCOUNTING, FINANCE, IT

BI & ANALYTICS

PAYMENTS

MOBILE ENTERPRISE APPS:

LANDSCAPE TRENDS
The number of mobile enterprise application
companies has grown by 20% in the last year
While this isnt a high growth rate, it is similar to the early days
of SaaS when entrepreneurs were learning to capitalize on a
new platform and the pace of company creation was modest.

Industry-focused apps are playing a prominent role

Approximately 1/3 of the companies on the landscape focus on
specific industries. This is different from the early days of SaaS
when nearly all companies were cross-industry.

Early M&A has centered around productivity apps

Microsoft has played a prominent role having acquired three
productivity-focused mobile enterprise companies to date
(6Wunderkinder, Sunrise, and Acompli).

EARLY STAGE MOBILE APP FUNDING HAS BEEN

INCREASING EVERY YEAR SINCE 2010, GIVING RISE TO
A HANDFUL OF LATER STAGE APPS WITH MASSIVE
GROWTH ROUNDS
LATE STAGE MOBILE APPS
FUNDING* TO-DATE

EARLY STAGE MOBILE APP FUNDING*

(2010-2014)
$700,000,000

120

WHERE ARE
WE TODAY?
97

$500,000,000

99

100

80

$400,000,000

55

60

$300,000,000
34

40

$200,000,000
20

20

$100,000,000
$-

# of deals

Total Amount Raised (USD)

$600,000,000

Dropbox

$600,000,000

Box

$544,000,000

Square

$480,500,000

Slack

$338,450,000

Evernote

$181,250,000

ServiceMax

$120,000,000

Doximity

$81,800,000

Airstrip Technologies

$65,000,000

0
2010

2011

2012

2013

2014

SOURCE: Emergence analysis based on Crunchbase data

*Early Stage is defined as companies that have raised less than $50M total funding; Late Stage is defined as companies that have
raised more than $50M.

MOBILE ENTERPRISE APPS TOTAL FUNDING BY CATEGORY

EDUCATION

V
E
R
T
I
C
A
L

HEALTHCARE

10 companies
$140M

OTHER VERTICALS
TRANSPORTATION

7 companies
$49M
RESTAURANTS

REAL ESTATE/CONSTRUCT.

35 companies
$300M

RETAIL

32 companies
$90M

HOSPITALITY

MANUFACTURING

4 companies
$30M

10 companies
$92M

10 companies
$51M
6 companies
$20M
BANKING
1 company
$9M

WHERE ARE
WE TODAY?

GOVERNMENT

3 companies
$8M

PRODUCTIVITY

CONTENT

H
O
R
I
Z
O
N
T
A
L

19 companies
$1,407M

COMMUNICATION

43 companies
$622M

TASK MANAGEMENT
& CALENDAR

15 companies
$98M

MOBILE FORMS

7 companies
$25M

EVENTS & CONTACTS

12 companies
$75M

SALES, MARKETING & SERVICE

18 companies
$108M

38 companies
$216M
HR & RECRUITING

23 companies
$94M

ACCOUNTING, FINANCE, IT

OrderAhead

BI & ANALYTICS

PAYMENTS

10 companies
$54M

15 companies
$656M

MOBILE ENTERPRISE APPS:

FUNDING TRENDS
Early stage funding is taking off
Annual dollars invested in early stage mobile enterprise app
companies has grown at a CAGR of 38% over the last 5 years.

Several late stage breakout companies are

emerging
Beyond well-known names such as Box, Square, and Slack,
other companies such as Doximity and ServiceMax are
approaching unicorn status.

Several landscape categories have been

particularly appealing to investors
Productivity app companies have been the largest recipients
of capital. Payments, healthcare, and sales/marketing have
also seen meaningful investor interest.

MOBILE ENTERPRISE
ENABLERS
Emergence publishes a landscape of mobile
enterprise enabler companies annually
Our first landscape was published this year and includes
220 companies.

The landscape is segmented by problems that

application developers are aiming to solve
Sometimes an enabler might help its customers solve
multiple problems. In this case, we show the enabler in
what we feel is its primary problem solving area.

MOBILE ENABLER LANDSCAPE 2015

ACQUIRED
USER ACQUISITION

ENGAGEMENT

MONETIZATION

APP DISCOVERY

A/B TESTING

MARKETING ATTRIBUTION

APP LANDING PAGES

ANALYTICS
MONETIZATION
APP STORE OPTIMIZATION

WHERE ARE
WE TODAY?
NOTIFICATIONS

APP STORE DATA & RESEARCH

MOBILE MARKETING AUTOMATION

APPURL

FEEDBACK & SUPPORT

API LAYER

DEVELOPMENT
DEV PLATFORM

TELEPHONY

DEMO TOOLS

APP TESTING

MOCKUP/PROTOTYPING

Babble-on

APP BUILDER
Tapku

Turnpike

EMAIL

PAYMENT

LOCALIZATION

DEEP LINKING

WireKit

MOBILE ENTERPRISE ENABLERS:

LANDSCAPE TRENDS
Judging by the number of companies in each landscape
category, user engagement and development efficiency
are key pain points in mobile
Over half of the companies on the landscape are focused in these
two areas.

Acquisition activity has been heaviest in analytics

Many mobile analytics companies continue to emerge, which may
suggest app developers analytics needs are still evolving.

The user acquisition and monetization categories are

surprisingly uncrowded
These are clearly areas of interest for app developers. Big problem
plus minimal competition could be opportunity for entrepreneurs.

EARLY STAGE MOBILE ENABLERS SAW A STEP

FUNCTION INCREASE IN FUNDING FROM 2013 TO
2014, JUST ONE YEAR BEHIND MOBILE APPS
LATE STAGE MOBILE ENABLER
FUNDING TO-DATE*

EARLY STAGE MOBILE ENABLER FUNDING*

(2010-2014)
60

$400,000,000

48

50

$300,000,000

36

$250,000,000

38

40

31
30

$200,000,000
$150,000,000

20

13
$100,000,000

10

$50,000,000

# of deals

Total Amount Raised (USD)

$350,000,000

Stripe

$190,000,000

Twilio

$99,000,000

Optimizely

$87,000,000

Xamarin

$82,000,000

Applause

$80,800,000

Zendesk

$79,000,000

Appcelerator

$78,100,000

Mixpanel

$76,500,000

Quixey

$74,200,000

Tapjoy

$51,000,000

$-

2010

2011

2012

2013

2014

SOURCE: Emergence analysis based on Crunchbase data

*Early Stage is defined as companies that have raised less than $50M total funding; Late Stage is defined as companies that have
raised more than $50M.

MOBILE ENABLERS 2015 TOTAL FUNDING BY CATEGORY

USER ACQUISITION

ENGAGEMENT

MONETIZATION

APP DISCOVERY

A/B TESTING

MARKETING ATTRIBUTION

4 companies
$72M

10 companies
$96M

11 companies
$111M

ANALYTICS

APP LANDING PAGES

32 companies
$395M

8 companies
$1M

MONETIZATION

10 companies
$94M

NOTIFICATIONS

11 companies
$80M

APP STORE OPTIMIZATION

10 companies
$82M

8 companies
$101M
FEEDBACK & SUPPORT

13 companies
$107M
TELEPHONY

API LAYER

5 companies
$237M

DEVELOPMENT

LOCALIZATION

DEV PLATFORM

12 companies
$29M

16 companies
$152M

8 companies
$192M

MOBILE MARKETING
AUTOMATION

APP STORE DATA & RESEARCH

11 companies
$100M

DEEP LINKING

APP BUILDER

5 companies
$82M

4 companies
$1M

PAYMENT

EMAIL

2 companies
$190M

6 companies
$73M

MOCKUP/PROTOTYPING

DEMO TOOLS

17 companies
$91M

APP TESTING

18 companies
$121M

MOBILE ENTERPRISE ENABLERS:

FUNDING TRENDS
Early stage funding of mobile enterprise enablers is
accelerating
Dollars raised by enablers in 2014 nearly doubled from 2013.

Many of the later-stage enablers service both mobile

and web developers
This is unsurprising as many app companies have both mobile and
web-based interfaces to their applications. Additionally, many
leading enablers that started as web-only have added good mobile
capabilities to their offerings.

Analytics, deep linking, and telephony categories have

received the most funding
Payments and development platforms have also seen heavy
investment.

WHATS NEXT?
PREDICTIONS & OPPORTUNITIES

WE PREDICT THREE AREAS OF

GROWTH FOR MOBILE ENTERPRISE
1

DESK
EXTENSION

Continued growth of horizontal mobile

apps, many focused on productivity
improvements.

DESKLESS
ENTERPRISE

Expanding use of mobile apps for

non-desk workers, with a focus on
key verticals such as healthcare,
construction, and field service.

GLOBAL
MOBILE

Adoption of mobile enterprise

applications in emerging markets
that are inherently mobile-first.
These applications will be some
of the first business apps used in
these markets.

PREDICTION:
GROWTH OF DESK EXTENSION APPS

Continued adoption
of horizontal mobile
apps, many focused on
productivity
improvements. Nearly
all of the top 20 most
downloaded apps on our
landscape are
productivity-oriented.
SOURCE: AppAnnie, Emergence analysis

TOTAL
RAISED:
$3.7
BILLION

KEYS TO SUCCESS

Leveraging and blending mobile and

web, as the workers that use these
apps are deskbound at times and
mobile at others.
Utilizing mobile native access to
email, calendar, and contacts to
make integration with key data
sources easier, while enhancing
virality.
EXAMPLE COMPANIES

PREDICTION:
GROWTH OF DESKLESS ENTERPRISE APPS

Expanding use of
mobile apps for nondesk workers, with a
focus on key verticals
such as healthcare,
construction, and field
service. Non-desk
workers represent 80%
of the global workforce.

TOTAL
RAISED:
$855
MILLION

KEYS TO SUCCESS

Deep domain expertise in an industry

that is dominated by deskless
workers.
Extraordinary focus on simple user
experience; Apps for deskless
workers must be easy to use in the
field.
Robust offline functionality so that
the app is functional when online
access isnt possible.
EXAMPLE COMPANIES

PREDICTION:
GROWTH OF ENTERPRISE APP USAGE IN
EMERGING ECONOMIES

% OF MOBILE ENABLED WORKERS IN 2020

Adoption of mobile
enterprise applications in
emerging markets that
are inherently mobilefirst. These applications
will be some of the first
business apps used in
these markets.

50%

10% LATIN
AMERICA

10%

SOURCE: Citrix, IDC, Emergence analysis

ASIA
PACIFIC

MIDDLE EAST
+ AFRICA

MOBILE ENTERPRISE
OPPORTUNITY: $100+ BILLION
3.0 BILLION
GLOBAL
WORKERS

$40+
PER WORKER
PER YEAR

$100+ BILLION ANNUAL REVENUE

OPPORTUNITY

MOBILE
ENTERPRISE
REVENUE TODAY:
<$500 MILLION

SOURCE: Emergence analysis

CLOUD
REVENUE
IN 2005:
<$500 MILLION

SUMMARY
Enterprises are shifting more IT budget to mobile
initiatives
In response, a growing number of entrepreneurs are
developing mobile enterprise applications that help
both desk workers and non-desk workers become
more productive
Growth in funding for mobile enterprise applications
and mobile enablers is growing rapidly
We are in the early innings of the mobile platform
shift in enterprise. Ultimately, the opportunity in
mobile enterprise applications is over $100 billion
annually.

ABOUT EMERGENCE CAPITAL

ABOUT EMERGENCE CAPITAL
@emergencecap
Emergence Capital Partners, based in San Mateo, Calif., is the leading venture capital
firm focused on early and growth-stage enterprise cloud companies. Its mission is to
invest in the cloud visionaries who are building the most important business applications.
The firm's investments include companies such as Salesforce.com (CRM), SuccessFactors
(acquired by SAP), Veeva Systems (VEEV), Yammer (acquired by Microsoft), and Box.
Emergence Capital has $910 million under management. More information on Emergence
Capital can be found athttp://www.emcap.com.
Published by Kevin Spain, General Partner, Emergence Capital, @kevinspain
kspain@emcap.com