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    1 Reply Latest reply on Jul 8, 2008 2:37 PM by LJCooper

    Mobile Internet and content services startup in Cape Town

    LJCooper Newbie
      I represent a new Mobile Content service company in Cape Town, South Africa.
      We are looking for funding to move forward, Firstly to cover TV and print advertising and secondly as working capital.
      Networks and carriers are on a "30 day from invoice" payout schedule, and positive cash flow is essential to the success of any business.

      My question is how to go about attracting investment (equity or otherwise) internationally (outside of South Africa)?
      How to we go about establishing contact with interested Private/Angel Investors?

      We do have a business plan and financial projections, but being South African seems to count against us.
      I think people generally have a total misconception of this country is all about (no Elephants of Lions in the streets - Heck, I've only seen a Lion in a Zoo!)

      The South African mobile content/internet services market is highly active, with South Africa being a top 5 Country in terms of mobile peneration and mobile Internet usage. Content, Internet and mobile subscription services are leaps ahead of markets like the US, and in most cases are on par or eclipse europe.

      Some Facts and Figures:

      South Africa has 5.2 million "traditional" PC based internet users. In comparison, mobile internet can be accessed by approximate 30 million mobile subscribers in the country and this figure grows on a daily basic as new device models enter the market.

       

      BBC reported 20% of their international WAP (mobile internet) traffic originating from South Africa while Opera Mini, a leading mobile browser, report South Africa as one of their top five territories worldwide.

       

      According to Admob, the world's largest mobile advertiser, in January South African users generated 151.78 million page impressions, compared to the UK which generated 151.88 million impressions. This compared to December where South African users generated a total of 142.28 million impressions clearly demonstrating an upward trend of mobile internet access in South Africa.

       

      Analysis from Frost & Sullivan, (http://www.mobileandwireless.frost.com), South African Mobile Content Services Market, finds that the market is set to grow by an average of 15% up until 2013.

       

      In a country where the mobile device penetration is 83 percent of the population it is plain to see that mobile focused internet access is the way forward for Africa and specifically South Africa.

       

      Combine this knowledge with a recent study by Google which states that adult content is the most sought after mobile content by mobile search users with cell phones. Google's team found that 20 percent of searches on cell phones were for adult content. A surprising finding is that only 8.5 percent of searches on desktop computers are for adult material.

       

      The researches sifted through 1 million searches by users of their mobile search software.

       

      Google's explanation for the popularity of such searches on cell phones is that users regard their handsets as intensely personal devices which leads to more comfort in querying these search terms, browsing, downloading and interacting with this type of content on their mobiles. Users are more confident that others won't discover their activities. According to Google users are more likely to search for adult content on their handsets because it's easier to get away with it.

       

      A new Juniper Research study forecasts the mobile adult content market will grow from $1.4 billion in 2006 to over $3.3 billion by 2011. According to Juniper, adult content will generate $14.5 billion in revenues during the projected 2006-2011 timeframe. Europe looms as the most lucrative regional market, contributing 39 percent of revenues, followed by Asia Pacific at 33 percent. By 2011, video will account for over 70 percent of adult content revenues.

       

      "The mobile channel will provide a different way of presenting adult content to traditional delivery channels and will reach new audiences. Mobile is about fun and instant gratification. I think the biggest opportunity is at the casual and 'softer' end of the adult market--lads in pubs sharing a video clip after a few pints and people looking for a bit of fun when they have spare time to kill."