If you are a startup, who has confusion that whether you should go with outdoor recreation app development or not, then this blog is for you. This blog reveals three major reasons why investors are turning towards the outdoor recreation startups.
In this age of startups, having an innovative idea can only take your startup to the next level. For this, you need to follow protocols from raising funds, market your business to attract customers at the same time.
The Venture Capital (VC) is not the only the one, who is making deals in the wild, even entrepreneurs, who seek to make the outdoors more comfortable and accessible, however, they are more interested to invest on the outdoors. This is the reason why customers do spend approximately US$887 billion per annum on outdoor recreation, according to the 2017 Outdoor Recreation Economy report.
All of these outdoor recreation services have one thing common is that the greater the number of services and products are, the higher the business revenues will be. It means that whether you are a startup or an Entrepreneur, who is seeking ways to invest in camping or hiking apps with better and expensive services to users, then you’ll get the better chance for return investors and referrals.
What is Outdoor Recreation?
Basically, outdoor recreation activities are those activities that are undertaken the outsides the confines of buildings, and it can be undertaken without the existence of any facility for infrastructure. Furthermore, the outdoor recreation activities, include Bicycling, Boating, Hiking, and Hunting.
The Outdoor Recreation Economy
- In the below-given image of pie chart, you can see that the outdoor recreation is essential to the American Economy.
- When it comes to outdoor recreation economy, it grows at a much faster clip than the overall economy. In the year 2016, the outdoor recreation economy grew 3.8% as compared to the overall economy, which is slower by 2.8%.
- It is estimated that the 6.1 million Americans lives are directly depended on outdoor recreation.
Essentially, the outdoor recreation economy can continue to be growing, and acts as an economic powerhouse. The continued growth and success of outdoor recreation hinge the opportunities for startups.
So, what is all fuss about in the name of outdoor recreation? And, why should outdoor recreation matter to you as a business owner or a startup?
Herein, we have gathered three reasons on why you as an entrepreneur or a startup should invest in the outdoor recreation. Let’s have a look!
3 Reasons: Why Should Invest in The Outdoor Recreation?
1. Outdoor Recreation is a Powerful Force in The U.S
Undoubtedly, North Americans spend billions of dollars at campgrounds and on camping related products every year. As per the report from Crunchbase Analysis, “North American Ventures invest in the outdoor space, which is ascending five-fold from $8.9 million in the year 2013 to $ 44.82 million in the year 2017”.
In the below-image, you can see the data about the U.S and Canadian companies that are focusing on camping hunting, fishing, backpacking, hiking, and RVs (Recreational Vehicles).
Even better, it is also predicted that there is an indication that the 2018 year will be even more lucrative for startups in order to raise money when it comes to outdoor recreation.
Top 3 Startups That Have Secured Highest Funding
Outdoorsy: Outdoorsy, a San-Francisco-based peer-to-peer RV rental startup, provides an online marketplace for motorhome or RV and its owners to rent out vehicles. Recently, the startup has secured $25 million in Series B round by Aviva Ventures and Altos Ventures.
RVShare: The competitor of Outdoorsy – RVShare (The World’s largest RV rental marketplace) has also secured $50 million from Austin-based Tritium Partners, whose managing partners led by the first investment in vacation rental giant HomeAway.
onXmaps: Montana-based mobile app startup company has recently raised $20.3 million total funding amount in Series A led by Summit Partners. Over the past nine years, the mobile app startups focused only on creating interactive and detailed map-based information for hunters and outdoor enthusiasts to help them in planning and navigating their excursions.
One of the widely famous GPS apps, onXmaps is based on the simple concept. As it says that a smartphone can communicate constantly with satellite in space. So that, all the user need is a digital map on the smartphone to know whether he/she is near the tower or not.
This app is basically useful for campers or hikers, where weak signal is a common problem while camping. If we’re talking about the app’s popularity, it is like the estimated half a million customers have purchased the products of onXmaps, called Hunt, Roam and Viewer.
Now, we can say that the outdoor recreation startups are easily raising funds from those Venture Capitals (VCs) who had not previously invested in the niche of outdoor recreation as well as from those who are known for investing only in “traditional” technology firms.
2. Venture Firms Are Diversifying
When it comes to the investors of Montana-based mobile app startup company – onXmaps, then these investors are historically known for investing in the industries like FinTech (Financial Technology), IT, and e-Commerce. However, both Summit Partners and Bessemer Venture Partners are more interested and have an enormous potential towards the outdoor recreation startups. So, it is completely safe to say that – the giant Venture firms are diversifying and looking upon the long-lasting growth in the outdoor recreation startup companies.
Furthermore, after first introduced to onX, the duo partners said that they immediately recognized the special combination of culture, performance, product-market fit, and rare fusion of self-awareness, which they found out in many world’s bootstrapped developed companies.
3. Expanding The Outdoors
Since day one, the revenue of onX has grown 100% year over year, and the app, onX has been profitable from day one. Unquestionably, hundreds and thousands of people use such map-enabled apps like onXmaps. In the niche of hunting mobile apps, there are still lots of opportunities where startups and entrepreneurs can drive expand. In a nutshell, the capital gives startups the ability not to let off, but instead take an advantage of strong ROI (Return on investment) opportunities in a whole host of areas.
Side Note: As more people continue to look for outdoors for recreation, it is inevitable that more number of startups will emerge to meet their requirements and more number of venture firms will invest in the growing space. It is also predicted that 2018 could be the biggest year for venture funding as compared to the previous years.
How Can Space-O Technologies Be Your Best Technology Partner?
Well, throughout the blog, we talked a lot about the growth of outdoor recreation like its constant growth, top startups that generate huge profit and developing new solutions.
So, being a startup or an Entrepreneur, if you have been seeking a professional Android app development company for developing hunting GPS apps and map-enabled apps, then Space-O Technologies have already developed more than 40 GPS and navigation-based mobile applications.
Nevertheless, if you may have any query regarding the development of hiking and camping apps, you can consult us through below-given form, and we will figure out how we can help you to take your startup to the next level.