August 2, 2019

Reports indicate that more than US120 billion is

first_imgReports indicate that more than US$120 billion is flowing through the mobile application ecosystem. About half of that is generated by game companies and venture-backed unicorns; the other half from small and medium-sized businesses.Venture money doesn’t reach those companies, the ones who build mobile apps that sell for 99 cents, or that offer a free download for the app and hope to get users to buy additional features or (in a move that smacks of playing both ends against the middle) pay to remove ads. These smaller companies often find it hard to raise the capital they need to market their apps, and themselves, due to restrictive underwriting that favors the bigger players.Mark Loranger and Sergei Kovalenko are hoping to fill that critical funding gap with their new startup, called Aprenita, which offers a new way for mobile app developers to get the funding they need to grow.(Related: NVIDIA is working on an autonomous system for cars) “We think of it as Capital-as-a-Service for mobile app developers,” Loranger told me recently. “In order to grow, they need to invest in marketing.” Hasn’t that always been the case for business?Aprenita is building a unique automated system that pulls data by integrating across a company’s BI tools (its bookkeeping system, app store results, and analytics, to name a few) and building a model around the characteristics of the application portfolio to determine where the business is going and whether lending it money would be a good investment.On the other side of that coin, Loranger said, “For every dollar they spend, they’ll see the return if their analytics are set up right. We’ll know if they’re spending effectively, and they’ll know if their borrowing makes sense. It’s capital as needed with clear returns for us and the customer.”To do this, Aprenita has created business rules that drive the algorithmic system to make decisions based on the data. “The rules can be tweaked over time. If we see a potential customer that we think is a good fit,” even if the data doesn’t support it, “we can tweak the rule,” he said. “There is a human element.”last_img