March 07 2008 / by Alvis Brigis / In association with Future Blogger.net
Category: Entertainment Year: 2008 Rating: 7
Is this just the beginning for the iPhone?
Kleiner Perkins Caufield & Byers (KPCB) yesterday announced the launch of the iFund with $100 million in venture capital to invest in companies developing applications and services for Apple’s iPhone and iPod touch. The iFund, managed by KPCB, will be invest in companies with “market-changing ideas and products that extend the revolutionary new iPhone and iPod touch platform.”
By establishing a $100 million fund dedicated exclusively to iPhone applications, KPCB is letting us know it expects ongoing iPhone market penetration to be massive, resulting in a multi-billion $ industry.
“A revolutionary new platform is a rare and prized opportunity for entrepreneurs, and that’s exactly what Apple has created with iPhone and iPod touch,” said John Doerr, Partner at Kleiner Perkins Caufield & Byers. “We think several significant new companies will emerge as this new platform evolves, and the iFund will empower them to realize their full potential.”
By “significant”, Doerr most likely means companies in $50-200 million range, which reveals an expectation that the mass of iPhone app developers could in and of themselves claim $1 billion in valuation sometime in the next few years. Just imagine how many iPhone users there will have to be to pump revenue into these new companies.
“Developers are already bursting with ideas for the iPhone and iPod touch, and now they have the chance to turn those ideas into great companies with the help of world-class venture capitalists,” said Steve Jobs, Apple’s CEO. “We can’t wait to start working with Kleiner Perkins and the companies they fund through this new initiative.”
Of course they can’t wait. This is going to be huge for the spread of their platform and for their stock price, which may well pop when the market opens Friday.
So, when will you buy your first Apple iPhone? KPCB is betting it will be soon, if you don’t already have one.