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An online community where members use

3D avatars to meet new people,


chat, create and have fun with friends
Agenda

•  IMVU

•  Virtual Goods

•  Key Learning
Company Overview

•  Founded in 2004

•  Based in Palo Alto, CA

•  90 employees

•  3 institutional rounds

•  $30M raised
Snapshot

Cumulative Registrations
•  3D avatars
Millions
•  50M+ registered users
•  10M+ uniques/month*
•  User Generated Content
•  4 Million Items in Catalog

*Source: Quantcast, global

Jan ‘06 April ‘10


2009 Results

•  Raised $10 million in January, led by Best Buy Capital

2009
•  Doubled revenue to $22 million in calendar 2009
•  Became profitable and cash flow positive
Attractive Demographics

70% Female

60% 18+ years old

60% USA
User Generated Content

4 Million Virtual Items

April 2004 April 2010


2010 Outlook

•  Double revenue again to $44 million

2010
•  End year at $60 million annualized revenue run rate
•  Invest profits into hiring… from 60 to 120 employees
•  Extend reach beyond English- and PC-only
•  Begin pivot… Virtual World to Social Entertainment
•  “From Dress Up to Level Up”
•  Game Mechanics
•  2D and 3D Games
Virtual Goods
“Free to Play” Leads the Way - %

Thanks to PlaySpan & VGMarket Survey (n=2,425; 7/09)


http://corp.playspan.com/pressroom.html

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“Free to Play” Leads the Way - $

Thanks to PlaySpan & VGMarket Survey (n=1,736; 7/09)


http://corp.playspan.com/pressroom.html

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What are Virtual Goods?
Digital Items with Contextual Meaning
(A) Functional Virtual Goods
(B) Decorative Virtual Goods
Why Virtual Goods?
1. Enhance Game Play (kill more, run faster)
2. Express Your Identity (dress up, decorate)
3. Build Relationships (gifts)
4. Shop (browse & buy)
SOCIAL CONTEXT Provides Meaning & Emotion
Key Learning
Key Learning

  It’s all about community


  Virtual goods are consumer products
  Payment options must be flexible
  UGC is hard
  Patience is a virtue
Q &A

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