Will Jobs Follow As VC Funding Chases Mobile?

GivitVideo-app maker Givit is one of the latest mobile developers to catch the wave: It’s received $2.5 million in second-round funding from ATA Ventures and JK&B Ventures.

Companies like Givit are popular right now, which means they’re receiving a lot of money from VCs. In the second quarter, the mobile firms snagged 102 funding deals, says researcher CB Insights, of which nearly 30 percent went to mobile photo and video businesses.

This translates into potential hiring. Although Givits CEO Greg Kostello says he hopes to keep his team to a lean 10 people for now, he’s always looking for good talent. He’s typical, so developers and engineers who want to work in the space should keep an eye on who gets funded and how their technology is embraced.

Mobile Darlings

Givit initially started out as a B2B company, but about a year ago changed course to video focus to video sharing. This spring, it began working on an app that would allow video editing on the fly with an iPhone.

The Givit Mobile app, which launched in early October at DEMO 2012, allows users to select video snippets, string them together, add special effects and music, then share the result on social networks. One of DEMO’s review panelists said he was intrigued enough to downloaded Givit’s app, while another noted that “editing on a mobile phone is powerful.”

Here’s a look at the app:

Younger Companies

Another company to keep an eye on is LifeStyleFeed.com. The brainchild of founder Leon Harvey, Jr., its app allows users to get a virtual taste of restaurants or entertainment venues through a series of videos. Users drill down to check out an establishment’s interior, cuisine and general ambiance. An example:

Harvey’s bootstrapping the company right now, devoting 100 percent of his time to the business, assisted by a part-time CIO. The company has received $15,000 in angel funding for far, but, of course, is looking for more.

Other mobile companies seeking to gain traction include MyPref, creators of a location-based app that identifies merchandise users like and delivers a list of local retailers that offer it. The company’s raised between $100,000 and $500,000 in seed funding and hopes to find more capital later this year or early in 2013.

As intriguing as these companies are CB Insights notes that seed or Series A funding accounted for just 19 percent of all venture investments in the second quarter. Later-stage companies reap most of the money. So if you’re not particularly comfortable with risk, you may want to hold off on sending your resume to companies like Givit, LifeStyleFeed and Givit. At least for now.

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