Need some money? Start an iPhone business

On July 15, 2009

The iPhoneIf the economy has left you in the lurch and you need some quick cash, you could always start your own iPhone software development company.  That’s where venture capitalists are currently investing over 100 million dollars of their money.

This sounds like the beginnings of yet another tech bubble (at least, a small one).  Given the low barriers to entry of becoming an iPhone developer, plus the standard cost of 99 cents per app (and less than that in profit), it seems that it would be difficult for investors to make back their money.

Of course, that depends how much is being invested in each individual company.  If you look at the stats, the minimum investment is $15,000, and the maximum, a whopping $15 million!  What?  15 million dollars?  I don’t know what kind of app (or apps) that the 15 million dollar company is creating, but it better be amazing.  Particularly in this economy, venture capitalists have a low tolerance for a lack of profit.

On the other hand, with over 1 million 3GS phones sold in a few days around launch, the potential audience is only growing  (and at this rate is projected to surpass even the mighty Nokia by 2013).  Maybe the VC’s know something we don’t about the time it takes to make back 15 million with that kind of audience.  It’s a big gamble in order to find that killer iPhone app,  but, the market is still growing and who knows what the future will bring with regards to iPhone development?