Consumer apps encompass mobile and web applications serving individual consumers for communication, productivity, entertainment, health, finance, and daily life. The category is simultaneously one of the most accessible startup categories to enter (anyone can build an app) and one of the most difficult to scale (achieving viral adoption and sustainable retention among billions of smartphone users who already have established app habits). Consumer app investment peaked in 2021 and has corrected significantly as investors recognized that user acquisition costs, low willingness to pay, and high churn rates make most consumer apps poor venture investments. The winners are apps that achieve genuine habit formation (daily or weekly active usage) and monetize through subscriptions, in-app purchases, or advertising at scale.

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