The infusion of technology into our daily lives has been steadily growing since wireless networks became a standard feature throughout the U.S. It’s not uncommon for people to rely on smartphones as a media center, camera, address book… and for seemingly hundreds of other uses. Along with the increasing dependence on smartphones and other tech devices, the need for file sharing and transferring has also increased.
VC investors have seized the opportunity to capitalize on this tech addiction, completing 117 deals involving U.S.-headquartered file-sharing-related companies, according to the PitchBook Platform. Deal flow has steadily increased each year since 2007, perhaps partly thanks to the birth of the iPhone and Android during that period. 2011 proved to be a good year for companies in the sector, with investment activity reaching 14 deals and totaling nearly $425 million in capital invested. Deal flow continued to blossom in 2012 at 16 deals, but this year, the trend may be abating with only five deals completed year to date.