Mobile Bits and bobs

I've been a bit slack on the blogging front....busy times.So I thought I'd write another summary as the last one proved quite popular....

Michael Mace continues to deliver the goods over at Mobile Opportunity with a great article and some original analysis on mobile data and handset segmentation. Mr Mace argues the existence of three main handset segments (entertainment e.g. NGage, communication e.g Treo, and information e.g. PDA) and that what lies intersecting all three is the "Zone of Death". IMHO, the "zone of death" presents the biggest opportunity IF the device manufacturer can get the UI and marketing right, and I dont mean market it as a Swiss/army phone. Surely, the mass market needs a credible combination of all 3 capabilties? Communication, Entertainment and Information are converging right? (2ndLife, WOW, Habbo, Pica etc)

Paul Fisher of FirstCapital has written a great overview of VC activity in Europe during 2006. This was a great read as most of the coverage I see is about the US with little to no European specific coverage (except TornadoInsider). Looking at who raised what and from who is also interesting - I'm still amazed that one of my favourite mobile services Zyb only raise 0.6m - a very slick backup service that works on most mobiles - i'd happily pay for that.
And while were on the subject of VC, AlarmClock Euro has a good summary of mobile-related 3i trade sales and an interview with Snr Partner, Ian Lobley.

I noticed that Steve Ives (former founder of trigenix which was sold to Qualcomm in 04) has started a mobile search company called Taptu - nothing to see but one to watch.

And again, while we're on mobile search, i came across a refreshing approach to mobile content search from MogMo - take a look.

Hedge-funded Start-ups

I heard an amazing quest for funding story last week...about a UK company in the mobile space that raised an undisclosed (about $5m) Series A. They spent quite some time talking to VC's but opted for hedge-fund funding instead. The entrepreneurs behind the venture rationalised the funding intake arguing that they already had a strong network in place, it took very little time for the two parties to agree a structure and valuation, the funds were made available very quickly, there was no board-seat requirement, and because the fund was based in the US there was minimal day-to-day intrusion.

So I get home last night and open up my freshly delivered copy of Red Herring, and theres an article describing this new source of funding as an example of "financial convergence". It says that in the US, this is now quite common-place.
With the emerging trend of Micro-VC, hedge-funds and traditional VC, entrepreneurs are now witnessing a refreshing innovation wave across available finance sources, broadening choice and increasing the total amount of available funds.
P.S I would add that the hedge-fund route appears and makes sense only for the experienced and proven, so if you're starting out in this business, best probably to stick to the usual financial watering holes.