$600 million invested in mobile app industry in 2010

Over $600 million was invested globally in mobile apps in 2010, according to investment firm Rutberg & Company, highlighting the massive growth in the mobile industry, but is further growth being held back by the long app approval processes of the likes of Apple?

The mobile app industry received venture capital investment of $601.6 million in 2010, making it 9.8 percent of total investment for the mobile industry, which was given $6.1 billion last year. That’s not too shabby for a sector that has only recently blossomed thanks to a smartphone boom.

At TechEye we receive hundreds of press releases about new apps, from the most basic to the most bizarre. While we only cover the most interesting of them, the sheer volume of new apps out there shows how lucrative a business it is.

In fact, the mobile industry is growing at a very fast rate, with investment nearly tripling in 2010 from its figure of $2.1 billion in 2009. More deals were made, up from 269 to 416, but deals for larger amounts accounted for the huge increases seen in 2010, with only nine deals accounting for $2.3 billion of 2010’s $6.1. billion.

The app sector is clearly a major contribution to this, but long approval processes could be holding back the industry. Apple is well known for taking many weeks to approve an app, with some people reporting waiting periods of well over a month. These delays could hold up further investment and further sales, which could otherwise see 2011 as another record-breaking year for the mobile industry.