Elf Island is operating in a $22 billion industry and competing against companies like The Walt Disney Company, National Geographic, Sony and Nickelodeon, by carving out quite a nice niche.
It's the first gaming company that has a laser focus on combining gaming with doing good, so much so that it trademarked "Gaming For Good." Its mission is to build an entertainment company that provides kids with a fun game and adds redeeming value to the gaming experience. It empowers kids to pull together as a community to improve and participate in the world around them. To accomplish that goal, Elf Island marries the real and virtual worlds, by partnering with non-profit organizations globally to help build villages, provide clean drinking water, and protect endangered animals.
It was founded in 2007, came out of beta in May 2009, and by the end of December it will have more than 1 million registered users.
CEO Craig Kronenberger joined me and guest host Jay Myers, partner with Seyfarth Shaw LLP, on Bold Ventures Radio to talk about industry trends, the funding process, and every entrepreneurs' need for perseverance.
Below is an edited excerpt from the show that aired live on 1620 AM on November 18, 2009. To listen to the complete show click here.
BVR: From your unique perspective, what does the future of gaming look like?
Craig: When you look at how games are being used socially for training and education, you can see that gaming is becoming a critical way that we can evolve as a society; its a powerful tool that can be used. From a community standpoint, the social aspect of gaming has become huge. And you can see this emerging on FaceBook, Second Life and there are a lot of opportunities for chat. People are conducting business inside games. So we're seeing that more people can interact on a global basis in a unique way. The social part of gaming is driving the evolution of the industry. That's very different than in the 1980s, when it was one person playing one game. Today it is multiple people from around the world coming together through one game and interacting, competing, and teaming.
BVR: As the social aspects of gaming get more sophisticated, do security issues rise too?
Craig: You constantly have people trying to breakdown boundaries. And there are different ways to provide security: common chat, chat filters, create your own dictionary, these are ways that technology can create protections. But you have to have an human element for real security. At Elf Island, we have moderators around the country who are responsible for monitoring the chat conversations on the site and what the kids are doing. The biggest investment for our company is around security.
Memorable Quote: "As adults, we're not in a good position to create this game. The kids direct us. We rely on the kids to tell us how to make the game better." Craig Kronenberger
BVR: How have you funded this company?
Craig: Through hardcore bootstrapping, and after we developed the prototype and went into beta, we were able to attract Angel funding.
BVR: What does 2010 hold for Elf Island?
Craig: To compete, we have to get bigger faster and that means being more visible. Our intent in 2010 is to own this category; we're the first game to do "Gaming for Good." So in 2010, we want access to more players, we're diversifying our revenue stream by bringing plush toys and trading cards to market, and in early 2010 we'll be globalizing first in Europe and then pushing into the PanAsian market.
BVR: Gaming is a cash intensive business.
Craig: It is a complex thing to create a virtual world, and to build a great game, it is cash intensive up front; overtime, though, the expenses fall flat.
BVR: Are you going to build Elf Island to a certain level and then sell it to a Disney or Nickelodeon?
Craig: We're focused on building our company, and because we have such a distinct mission, we don't want to ever give up on our mission. Any potential strategic partner would have to buy into that mission.
Memorable Quote: "The challenge of creating an effective business model and getting it to work is very fulfilling." Craig Kronenberger
BVR: What advice do you have for other entrepreneurs?
Craig: There were times when I gave in too early. You have to keep going back out there and you can never give up. That extra effort will pay off; do whatever it takes, and don't give up. Never give up.
BVR: What's your perspective on risk-taking?
Craig: It takes big risks to make it. Taking risks is part of my DNA, and I'm lucky that my wife balances me out. Taking risks is critical to being a successful entrepreneur, and you have to get comfortable with taking risks.
To listen to the full interview, click here.
It's the first gaming company that has a laser focus on combining gaming with doing good, so much so that it trademarked "Gaming For Good." Its mission is to build an entertainment company that provides kids with a fun game and adds redeeming value to the gaming experience. It empowers kids to pull together as a community to improve and participate in the world around them. To accomplish that goal, Elf Island marries the real and virtual worlds, by partnering with non-profit organizations globally to help build villages, provide clean drinking water, and protect endangered animals.
It was founded in 2007, came out of beta in May 2009, and by the end of December it will have more than 1 million registered users.
CEO Craig Kronenberger joined me and guest host Jay Myers, partner with Seyfarth Shaw LLP, on Bold Ventures Radio to talk about industry trends, the funding process, and every entrepreneurs' need for perseverance.
Below is an edited excerpt from the show that aired live on 1620 AM on November 18, 2009. To listen to the complete show click here.
BVR: From your unique perspective, what does the future of gaming look like?
Craig: When you look at how games are being used socially for training and education, you can see that gaming is becoming a critical way that we can evolve as a society; its a powerful tool that can be used. From a community standpoint, the social aspect of gaming has become huge. And you can see this emerging on FaceBook, Second Life and there are a lot of opportunities for chat. People are conducting business inside games. So we're seeing that more people can interact on a global basis in a unique way. The social part of gaming is driving the evolution of the industry. That's very different than in the 1980s, when it was one person playing one game. Today it is multiple people from around the world coming together through one game and interacting, competing, and teaming.
BVR: As the social aspects of gaming get more sophisticated, do security issues rise too?
Craig: You constantly have people trying to breakdown boundaries. And there are different ways to provide security: common chat, chat filters, create your own dictionary, these are ways that technology can create protections. But you have to have an human element for real security. At Elf Island, we have moderators around the country who are responsible for monitoring the chat conversations on the site and what the kids are doing. The biggest investment for our company is around security.
Memorable Quote: "As adults, we're not in a good position to create this game. The kids direct us. We rely on the kids to tell us how to make the game better." Craig Kronenberger
BVR: How have you funded this company?
Craig: Through hardcore bootstrapping, and after we developed the prototype and went into beta, we were able to attract Angel funding.
BVR: What does 2010 hold for Elf Island?
Craig: To compete, we have to get bigger faster and that means being more visible. Our intent in 2010 is to own this category; we're the first game to do "Gaming for Good." So in 2010, we want access to more players, we're diversifying our revenue stream by bringing plush toys and trading cards to market, and in early 2010 we'll be globalizing first in Europe and then pushing into the PanAsian market.
BVR: Gaming is a cash intensive business.
Craig: It is a complex thing to create a virtual world, and to build a great game, it is cash intensive up front; overtime, though, the expenses fall flat.
BVR: Are you going to build Elf Island to a certain level and then sell it to a Disney or Nickelodeon?
Craig: We're focused on building our company, and because we have such a distinct mission, we don't want to ever give up on our mission. Any potential strategic partner would have to buy into that mission.
Memorable Quote: "The challenge of creating an effective business model and getting it to work is very fulfilling." Craig Kronenberger
BVR: What advice do you have for other entrepreneurs?
Craig: There were times when I gave in too early. You have to keep going back out there and you can never give up. That extra effort will pay off; do whatever it takes, and don't give up. Never give up.
BVR: What's your perspective on risk-taking?
Craig: It takes big risks to make it. Taking risks is part of my DNA, and I'm lucky that my wife balances me out. Taking risks is critical to being a successful entrepreneur, and you have to get comfortable with taking risks.
To listen to the full interview, click here.
No comments:
Post a Comment