SmallWorlds creator’s mobile game debut

Outsmart co-founder Mitch Olson says the time was right to have a crack at creating games for mobiles.

Kiwi game development company Outsmart, which created global hit SmallWorlds, has “dipped its toes” into the mobile space for the first time.

Five members of the 35-strong Karangahape Rd studio dedicated themselves to creating Gopher Launch, which went live on iTunes and Google Play on June 13.

Although the game is free to download, Outsmart will generate revenue through advertising and by charging players to access an ad-free version of the game.

Outsmart will launch a second mobile game called Roost Raiders in the next six weeks, Olson said.

Both new games are based on the ‘freemium’ model, where users play for free but can then choose to pay for add-ons to enhance the game.

“These games cost between $250,000 and $1 million to make. If you’re giving it away for free you have got to make sure your monetisation models are robust,” Oslon said.

Although Outsmart had managed to survive before now without going into mobile, delaying the move any longer would have been unwise, he said.

“We haven’t been affected to date. We continue to grow and that’s been supported by shifting into other markets like Brazil.”

Outsmart last year launched a version of SmallWorlds in Brazil, calledMiniMundos, which now has four million signed-up users.

SmallWorlds - an online environment where users create personal virtual spaces and share experiences with other players – has in the meantime attracted bigger audiences and now boasts 10 million registered players.

SmallWorlds’ backers include Disney’s venture capital arm and Trade Me founder Sam Morgan.

First published in the New Zealand Herald on Thursday July 4 2013

Photo / Sarah Ivey

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Bike crash leads to retail software start-up

Discount scheme that does away with loyalty cards was conceived during convalescence from motorbike smash.

Every cloud has a silver lining, so the cliche goes, and for Enis Bacova it was a road accident, which nearly killed him, that led to the establishment of an internet start-up.

“It took me six months to recover and Rippr came out of those six months of thinking,” he said.

Rippr was launched in February and is a web-based system that grocery retailers, restaurants and cafes can use to offer rewards to customers.

Instead of getting yet another loyalty card to put in their wallets or lose in a drawer at home, customers give their mobile number to the retailer to join up for free.

After activating their account online they earn “Rippr dollars” with each purchase (usually 5 to 20 per cent of the purchase price) that can be earned and redeemed on subsequent visits by entering a pin number at the store.

Users can also earn extra rewards based on the total amount of Rippr dollars that build up in each retailer’s “pool”. They are also encouraged to promote the service – and subsequently the businesses that use it – through social networks like Facebook, Twitter and Google Plus.

Ten companies are offering Rippr so far, including Dante’s Pizzeria in Ponsonby and the Covo restaurants in Fort St and Grey Lynn, as well as a number of grocery stores.

Around 3000 users are signed up, Bacova said, adding that he was focused on lifting the number of retailers using the technology to 100.

At that point Rippr – which charges a weekly subscription fee to its business clients – would become profitable, he said.

Bacova, whose brother Remion developed the technology that powers Rippr, said it was a challenge convincing companies to introduce the loyalty scheme because it was a “new thing”.

But it encouraged repeat visits from customers, as well as providing a database of clients that retailers could target in their marketing.

“Eighty per cent of revenue comes from 20 per cent of customers so these loyal customers who repeat business are very important,” Bacova said. “It’s much easier to keep a loyal customer than to bring a new customer in.”

Bacova graduated with a degree in political science from the University of Auckland in 2005 and gained an MBA from AUT after returning to this country following the motorbike crash.

“My move to New Zealand was a good thing … I feel alienated in Albania,” he said. “The way I see it is I want to give something back to New Zealand – I got educated here.”

Auckland business incubator The Icehouse owns a small stake in Rippr, while the other shareholders include members of Bacova’s family.

First published in the New Zealand Herald on Thursday June 20 2013

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NZ fashion firm crowdfunded to $170k

Kiwi clothing brand start-up which set out to raise $20,000 through a crowdfunding campaign has been left stunned after receiving more than eight times that amount.

Ohakune-based Opus Fresh was looking to get off the ground with enough money to fund the initial production run of its locally-sourced merino wool clothing line.

After turning to US crowdfunding website Kickstarter, the company has ended up raising US$139,000 (NZD$172,000) from 638 backers, with two days still to go in the two-month long campaign.

James Simpson, who founded the brand with partner Laura Currie, said people from all over the world had bought into the brand story and the product.

“We’ve got a good product but I think the story we sold was something a little different to what everyone else has done.”

Opus Fresh aims to produce garments for fashion-conscious travelers and outdoor enthusiasts. The brand tagline is ‘Adventurewear that doesn’t look like adventurewear’.

The massive funding boost meant the business could take its product to the market as a self-funded entity.

“We’re now in a pretty strong position not having to give up as much of the company. If we were to try and raise US$140,000 from scratch just off the idea or business plan, most likely we’d have had to give up 51 per cent of the company.”

Backers do not get shares in the company, but are given rewards ranging from a thank – you video for people putting forward small amounts to clothing packages for backers pledging US$79 or more.

Most backers were in the 25-40-year old age bracket and 98 per cent had pledged enough money that they were effectively pre-purchasing items of clothing.

We’ve heard from a lot of people who want to stock it but our sole focus at the moment is delivering to backers.”

Crowdfunding websites raised US$2.7 billion worldwide last year, an 81 per cent increase on 2011, according to a study conducted by research firm Massolution.

First published in the New Zealand Herald on Friday May 31 2013

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Safety-vest light system attracts international clients

Auckland start-up Lightknight has just begun selling its worker illumination system but the firm already has an impressive list of customers and is focused on taking the New Zealand-developed technology worldwide.

The St Johns-based company has created a lightweight, waterproof lighting system that can be retrofitted to existing high-visibility vests, which it says makes users stand out more at night than they would wearing conventional safety gear.

Managing director Mario Vulinovich said the potentially life-saving electro-luminescent technology solved the problem of conventional vests being ineffective after dark.

In addition, the Lightknight system could be transferred to new vests as older ones wore out, he said.

Funding, including from Auckland’s Ice Angels investment group and the Government-backed New Zealand Venture Investment Fund, was secured in 2011.

The Lightknight system, which is manufactured in China, was launched late last year and its local customers already include construction firms Fulton Hogan and Fletcher Building, as well as the Auckland Motorway Alliance, which is responsible for the upkeep of the city’s motorways.

Across the Tasman the Victoria Mounted Police are testing the technology, with the illuminated strips going on the horses’ backsides as well as riders.

Australian construction firm John Holland, and Leighton Contractors – which provides services to a range of industries including mining, infrastructure and telecommunications – have also ordered units. Ports of America, which operates 42 ports in the United States, and global miner Rio Tinto had ordered trial units.

The Lightknight system costs $195 a unit, plus $10 for each retrofitting.

He said the Ice Angels investment had allowed the firm to establish a solid board of directors.

Lightknight’s chairman is Ron Halls, a New Zealander who was the chief executive of international footwear retailer Foot Locker from 2006 to 2011.

Also on the board is Nigel McLisky, Sigrid’s father, who co-founded Innovair, the developer of the RoboCan pest control product that was sold to household goods giant SC Johnson in 2008.

Vulinovich said there was potential to supply to consumers, including cyclists. He added that Lightknight was likely to break even by the end of this year.

First published in the New Zealand Herald on Thursday Mar 14 2013

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Forbes praises LanzaTech

New Zealand-founded biotech company LanzaTech has been included in a Forbes Top 100 list of America’s most promising privately held companies.

LanzaTech’s technology converts waste and low-cost resources into sustainable, valuable commodities. It uses a microbe to convert gas from industrial sources like steel mills, processing plants and agricultural waste into fuels and chemicals.

The clean energy and renewable chemicals technology company was ranked 48th and was the only clean energy or bioscience firm in the top 50.

Headquartered in Illinois but with its scientific base in Auckland, LanzaTech was founded in early 2005 and raised funding through grants and New Zealand-based angel investors.

US business magazine Forbes said it compiled the Top 100 most promising listbased on variables including growth, quality of management, team and investors, margins, market size and key partnerships.

Alongside its ranking, LanzaTech was described as having 125 employees and revenue of $4 million in the year ended December 31, 2012.

Forbes said the company raised US$56 million in venture funding from Khosla Ventures, Malaysian Life Sciences Capital Fund and others in January 2012.

Last year, LanzaTech was ranked number three on the list of the “50 Hottest Companies in Bioenergy” by Biofuels Digest, an industry website in the US.

The firm also made number seven on the list of the “30 Hottest Companies in Renewable Chemicals”.

In October, LanzaTech secured another US$15 million (NZD$18.3m) in funding from a Silicon Valley investment firm, which brought its total capital raised to date to more than US$100 million.

The company has indicated it may list on the NZX at some point.

First published in the New Zealand Herald on Thursday February 7 2013

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