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Mobile Due Diligence Audit

The app economy is still on the rise and its value maturing. Across all stores, consumers downloaded 194 billion apps in 2018. And this is by no means the end of the story. Mobile apps do not only generate downloads, but considerable revenue. The global app store user spend amounts to US$101 Billion and by now, mobile consumes 60% of global digital ad spend (source: App Annie Annual State of Mobile 2019 Report).

Which mobile app company should I invest in?

Are you ready to own a piece of the very lucrative app economy pie? If you are about to provide capital for a selected app business you should know how strong the product and business model is in order to compete in a highly ambitious marketplace. Our Mobile Due Diligence Audit will provide you with exactly this information for you to decide whether to invest in a company or dismiss the idea.

Investing 101: The Mobile Due Diligence Audit for investors

There are some tips and hacks potential investors want to consider before investing in an app company. In order to feel comfortable going ahead with your investment, we will perform due diligence, vetting the app publisher thoroughly. Our audit provides you with information about the prospects of the success of your chosen company. We collect information on the following topics:

Business Model

As a potential investor, you should be able to quickly and easily grasp what the product is, which problem it solves and the monetization strategy behind it. Does the business idea have the potential to ignite and inspire users? Furthermore, we also investigate the product’s degree of innovation in order to position itself in the market. Yet another food delivery app will not yield a strong market performance if it doesn’t deliver any added value. In terms of scalability we evaluate how sustainable the business model in fact is.

Market potential

As an investor, you need to get a clear understanding of whether the market promises to become a continent of opportunity and growth. A niche product will have a much harder time taking off as an app that caters to the masses. We evaluate the market potential by considering current trends in the app economy.

Market efficiency and growth

We also include an evaluation of the growth structure in the evaluation. Since our primary expertise is analytics and technology consulting, our focus will be on attribution and mobile customer relationship management (mobile CRM) activities. Here, we evaluate the technical setup to find out whether the basics for successful app marketing are met.

Founder team

An innovative idea is nice to have, but does not grant success if the team behind the product doesn’t have a lot of experience. Founders who already have a proven track record in building app products certainly maintain an advantage in this regard. We thoroughly review the know-how in product & marketing management, and design & UX. We will determine for you if the team will be able to provide enough experience in sales and app development to be successful. In addition, there should be a clear understanding of what the company’s future roadmap looks like and whether there are already plausible sales figures.

Process and execution of the Mobile Due Diligence Report

For initial screening of the app publisher, we request documents such as the pitch deck which we evaluate internally. With the progress of the audit and serious investor interest, we will get a personal impression of the founders to ensure proof of concept – that is if the concept of the product really works for you.

The audit is a decision-making tool for investors to weigh the opportunities and risks of a potential investment in an app business. Furthermore, it will provide you with undiscovered potentials.