DCM Is Elevating One other $one hundred Million Fund To Make Investments In Android-Based mostly Startups
It seems to be like international enterprise agency DCM plans to make extra bets on Android apps, with one other fund that appears to be dedicated to investing in startups that develop for the cellular OS. In response to an SEC submitting, it’s looking for to boost $one hundred million for A-Fund II, the second strategic fund aiming to reap the benefits of innovation within the Android ecosystem.
The primary A-Fund was raised in 2011, at a time when the battle between iOS and Android apps was simply getting began.
The A-Fund was developed in partnership with Asia’s Tencent, KDDI, and GREE to make spend money on startups based within the U.S., China, and Japan that have been constructing apps for Google’s cellular OS. The assumption on the time was that there was an enormous alternative for Android adoption in China and different creating markets, and people companies needed to make early bets to experience that wave.
It was additionally a time when different enterprise companies have been just a little extra bullish on iOS improvement. Kleiner Perkins, as an example, had created its iFund to spend money on iPhone apps again in 2008, however doubled down on the fund with a $200 million dedication in 2010 with the discharge of the iPad.
That stated, early returns from DCM’s guess on Android appear fairly constructive. The most important winner out of the fund to date was an funding in Kakao, which later merged with Daum and is now publicly traded in Korea with a $7 billion market cap. (DCM adopted on its A-Fund funding by placing cash into Kakao’s Collection A spherical via its primary fund.)
As well as, the A-Fund seeded Yik Yak, which DCM additionally later invested in via its fundamental fund. Earlier this month, that firm closed on a further $sixty one million in funding led by Sequoia.
Life360 is one other firm to graduate from the A-Fund to a full funding by DCM — in its case a $10 million Collection B funding led out of the primary fund. It has since gone on to increase a further $25 million as a part of a strategic partnership with ADT.
Different notable investments embrace Freee, which is a cloud providers startup offering again-workplace instruments for Japanese SMBs, and PlayStudios, which develops gaming options for casinos and has partnered with MGM.
DCM declined to touch upon the general public submitting, nevertheless it’s in all probability value noting there are some variations between A-Fund I and A-Fund II’s SEC data. The latter fund lists solely DCM co-founder and common associate David Chao and common companion Jason Krikorian as administrators, whereas DCM common companions Peter Moran, Dixon Doll, Tom Blaisdell, and Carl Amdahl have been all on the submitting for Fund I.
It’s additionally value noting that most of the extra profitable startups to return out of that fund might have began on Android, however at the moment are principally multi-platform. You’ll be able to embrace KakaoTalk, Yik Yak, Life360, and Espresso Meets Bagel as corporations that at the moment are on iOS in addition to Android — and a few of its investments can be found on different platforms as nicely.
There’s a good query to ask if this fund is betting on Android particularly or cellular generally, notably as increasingly more builders understand the have to be on a number of units to be the place the customers are. However since DCM’s web site nonetheless lists the A-Fund as an Android-targeted fund, we’ll take their phrase for it.