Instead of pursuing corporate careers, they are writing business plans during MBA and master programs, and developing their products upon graduation.
Many of these entrepreneurs are also collaborating with developers from their business schools’ universities.
In the course of doing so, they are also helping to sustain a sector which many mobile developers fear is beginning to wane.
According to Deloitte, the consultancy, nearly a third of smartphone users do not download apps for their devices in a typical month. The average number of apps downloaded on a monthly basis has fallen considerably this year, Deloitte says in a survey of customers in the UK.
Smartphones have started to saturate mobile markets across Europe and the US, so users downloading new apps have become many developers’ primary sources of growth.
For start-ups, many rely on the app stores of Apple and Google, which both companies claim support a huge slice of industry developers in Europe.
Ali Ahmed, CEO of London-based Lutebox, like many in the sector allows users to download his flagship app for free in the iTunes store. “User growth – our key focus right now,” Ali said. “Once we have a large user base, there are ideas to monetize it.”
Venture capital firms are showing a renewed willingness to invest in start-up mobile companies.
According to Crunchbase, a site that gathers data on start-up investments, about 30 mobile start-ups closed funding rounds in July, an 11-month high.
Significant investments have been made in firms this year including Secret, a messaging app which raised $25 million, and organizational application Trello, which raised $13 million.
Index Ventures, the European investment group that backed mobile game-maker King Digital and takeaway website and app Just Eat, raised €400 million in June to invest in early stage technology start-ups.
But Deloitte’s survey will stoke fears that it is becoming increasingly difficult for app makers to gain market share.
The volume of apps available has made it harder for creators to gain visibility for their products. Download rates have also begun to slow – the number of smartphone users who do not download any apps has reached 31%, a steep increase on last year, according to Deloitte.
Some of the biggest app makers have struggled. King Digital Entertainment, maker of the popular Candy Crush Saga mobile game, last week cut its sales output, sending shares down more than 20%, after a torrid stock market debut in March.
Amidst the competition to find the next killer app, a troupe of MBA graduates have launched mobile development start-ups in an attempt to claim a cut of the market.
Euclides Major, co-founder of deals app MYGON, draws inspiration from Groupon, the Nasdaq-listed discounter. “We really tried to understand why the concept was booming,” Euclides said.
His free-to-download smartphone app allows users to discover local deals in Portugal. Traders sign-up to the platform and pay MYGON a fee.
“Where can I go for lunch? What am I going to do tonight? Open up the app, locate where you are, and see what deals are available to you right now,” Euclides said.
The app aggregates deals and discounts with restaurants, spas and other recreational businesses. MYGON has taken the daily deals concept and combined it with technology to create a sleek-looking app.
“It’s a very convenient way for users to book any type of service, and for merchants to build a local, real-time deals platform,” Euclides said.
He thinks that his MBA, from Spain’s IE Business School, has opened a lot of doors. He plans to expand. “We want to go to another European market and have a few under evaluation,” he said.
MYGON was founded in February 2012 and has since notched over 150,000 downloads from iPhone, Android and Blackberry users. The company raised about €550,000 through a seed round of funding, and has swelled to have about ten employees.
Sliding To Success
Robert Seo, CEO of Slidejoy, has taken a different approach. The company pays users to download their app: “In the last few months we’ve paid out between two to ten dollars per user per month.”
Clients sign up to have their products advertised on users' phones. Users download the app and are paid small amounts in return for having adverts displayed on their home screens.
“You have a choice to slide to the right or left; you get taken to the home screen if you swipe right, and if you swipe left you engage with the advertisement you see,” Robert said.
The Philadelphia-based company has delivered more than 26 million ad impressions to clients including Macy’s, Best Buy and Groupon. Robert thinks that Slidejoy stands out from the crowd.
“It’s an opt-in profile, so we have higher engagement,” he said. “It’s a lot more valuable than [a platform] within a website or an app – it’s a full-screen takeover.”
Slidejoy is a product of Wharton School – Robert, an MBA, met his co-founders there. The group won the Wharton BizPlan competition, netting $30,000. Slidejoy was launched in September 2013 and within three months was downloaded 20,000 times.
Robert believes that an MBA degree will help the company grow. “I would say in every single aspect as an entrepreneur it [an MBA] has been helpful,” he said.
Turning Phones Into Taxi Rides
Bassem Barake, co-founder of London-based Funryde Ltd, is attempting to turn smartphones into taxi rides.
His ride-sharing app, similar to services offered by Uber and Hailo, allows car-drivers to pick-up passengers who are going in a similar direction and earn a quick buck on the side.
Bassem says that this service is 60%-70% cheaper than using one of the city’s famous black cabs: “On average it’s less than a pound a mile.” Users have the option to increase or decrease that amount, based on their satisfaction. The company plans to take a cut of whatever price a passenger pays their driver.
Users are rigorously screened before being approved as drivers, for safety reasons. “We are raising awareness that not anyone can be a driver,” Bassem said.
The second stream of income will be from a carbon reduction initiative service, for private networks. One of Funryde’s main ambitions is to reduce the amount of cars on the road.
The business is based in Tech City – a cluster of technology start-ups in East London. Bassem says it has allowed them to learn from others. “The amount of learning we get from others is huge,” he said.
Funryde was borne from London Business School’s incubator, but Bassem has a Master’s degree from Cass Business School. He developed the app with the help of local City University and Imperial College students.
The company was founded in August last year and has plugged about 2,000 soft-launch downloads of its app so far. Funryde is sponsored by UK Trade and Investment, a government-funded support vehicle for SMEs.
The founders will not disclose the rest of the funding, which came from personal investment. Funryde is seeking an insurance deal to cover both their drivers and customer-passengers.
“The model won’t allow any profit until we find an insurance premium,” Bassem said. But he added that they were in “serious talks” with insurance firms.
Bayes Business School
Best Journalism school in Europe
When I first stepped onto the campus of City, University of London, I knew I was in for a ride - and not just on the Tube! With its vibrant energy and an impressive repertoire of programs, City U became my home away from home. The Journalism program was kind of a big deal. Rumour was that we were the best in Europe! The lecturers were not just experts in their field; they’re practically journalistic royalty. They were invested, passionate, and had a knack for turning the most flat press release into a riveting news story. With their guidance, I’ve learned to navigate the chaotic world of media like a pro. The campus was a melting pot of every culture, being that we had such a diverse international crowd. Being in the heart of London, I had the world at my fingertips - there was always a new corner to explore, a hidden gem of a cafe to discover, or a street performer! City, University of London wasn't just a university; it was a chapter in my life story that I’ll never forget.
The teacher-learner ration is manageable, giving each learner a chance to gain personal attention. It is also easier following up on the progress of a student, as the numbers per class is not large. the conducive environment for learning includes clean classes, standard desks, world class instructional facilities and the opportunity to engage lecturers even after their sessions. The team spirit at City is above board, with learners getting chance to learn both from instructors and colleagues. This is the university of choice; the place to be.
I liked that each class had a manageable number of learners, making the professor-learner ratio favor knowledge acquisition. I also liked that study schedules were manageable, and not overwhelming. The focus on talents and gifts even within the learning environment makes it possible for learners to achieve the best of their potential, and this has worked to the advantage of those that have schooled at City, University of London
The diversity at City University facilitates interactions and is a direction toward the unity of the world. The classes are well built to match the number and needs of all students regardless of the elements of diversity that set people apart. The use of technology in delivery makes learning even more interesting and achievable. At City University there is no distinction pegged on the issues that make people unique.
The team of lecturers at the Uiversity are well experienced. Their level of insight and the methodologies of delivery works for the interes of the leaeners. My learning experience was largely boosted by the level of knowledge of the professors at the institution, and their passion to transfer the same to learners. I appreciate every class I attended because of the level of insight I was able to gather
The best university I’ve been to
The campus and the people I've met have made it a wonderful experience. I was reared in a small town with a graduating class of only 88 individuals, so moving to City University was a huge adjustment for me. My dorm has more residents than my whole high school combined! I enjoy the atmosphere here, and everyone is so friendly. Outstanding academic options and a stunning campus. Really great from beginning to end. The educators genuinely love what they do, and the students are ready to learn. On or around college, there is always something to do with friends, and the social scene is particularly warm.
Bayes Business School
As a student at City university attending Bayes Business School I would totally recommend choosing this university as the experience is exceptional with great social networking opportunities . Professors are significantly helpful, delivering with excellence and professionalism. Everyone is happy to help and make you feel welcomed in such an esteem university as City, offering exceptional development and guidance through out the course.
Economics and Politics
Incredibly amazing university, the way they polish students and help them boost their morale and think intellectually is worthwhile. Many universities have international partnerships to allow exchanges between their students. The most obvious subjects for these opportunities would be those that involve languages, and the study of people and places.