Bubble may be looming in mobile startup market

Portland

THE number of mobile Internet startups with valuations crossing US$1 billion has jumped by a third in just eight months and that's spelling trouble for some venture capitalists looking to cash in on their investments.

Already, there are signs of worsening returns. The ratio of mobile Internet exits - startups that are either sold or go public - to investments has plunged over the past six quarters, excluding one outlier deal, according to consulting firm Digi-Capital.