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Andy Rubin quietly left the venture company he founded
Disgraced former Google exec Andy Rubin has lost another one of his ties to Silicon Valley earlier in 2019. BuzzFeed News has obtained documents indicating that Playground Global, the venture company Rubin founded in 2015, "ended [its] business relationship" with its creator at the end of May. He remained a "good friend" of the company, but no longer had a position or financial stake. The reasons for the exit weren't mentioned.
Anki is closing the doors on its toy robot business
Anki, the startup responsible for adorable robotics, is closing its doors and will terminate nearly 200 employees Wednesday. CEO Boris Sofman broke the news to staff today, Recode reports. In a statement provided to Engadget, the company said, "A significant financial deal at a late stage fell through with a strategic investor and we were not able to reach an agreement."
Nexon, Wargaming, Zynga CEO back mobile startup fund
Venture capital firm London Venture Partners is offering initial funding for mobile game development startups. The firm plans to invest between $50,000 and $500,000 into developers that are primarily in Europe. LVP General Partner Paul Heydon told TechCrunch that the firm plans to invest in 20 to 25 projects "of up to half a million dollars each over the lifetime of the fund." The money is coming from Asian publisher Nexon, World of Tanks creator Wargaming and Zynga CEO Don Mattrick. London Venture Partners includes former Atari CEO David Gardner with Microsoft's Corporate VP Phil Harrison serving as a special advisor. Harrison joined Gardner's firm in May 2010. LVP's previous investments include Clash of Clans developer Supercell, the now-Zynga-owned Backbreaker studio NaturalMotion, as well as development platform Unity. [Image: London Venture Partners]
SOE's John Smedley blames Rhode Island government for 38 Studios closure
So who's at fault for the 38 Studios debacle? It's a question that's been thrown around a lot with no clear answers. But John Smedley of Sony Online Entertainment thinks that it's a pretty clear case of the state of Rhode Island getting involved in something it shouldn't have and then backing out at the worst possible time. He stated on Twitter that having seen the game himself, it had potential and it could have been something if it had actually made it to release. Smedley agrees with Governor Lincoln Chafee that the funding deal was a bad idea and should never have taken place, but once it had taken place, it was in the state's best interest to aid the studio rather than letting it fail. Chafee's comments and naysaying for the project doomed the chances of the game getting any additional funding, ultimately shuttering the studio altogether. Despite that, Smedley also notes that in the long run it was a bad idea that should never have taken place and that SOE was approached for funding on the game and declined, which he suggests should have been indication enough for Rhode Island not to make the deal. [We've updated the title to make utterly clear that of course we (and Smed) were talking about the government of Rhode Island, not some random people in Rhode Island, many of whom obviously did not vote for said government. After the break, we've also quoted the relevant tweets, among them the one in which Smed declares that but for Chafee's actions, we'd be playing the game right now.]
Indiegogo raises $40 million in second round of venture funding
San Francisco-based crowdfunding platform Indiegogo announced that it has raised $40 million in a second round of venture financing, following up on a $15 million Series A funding round in 2012. Indiegogo said in a statement that it plans to springboard off its Series B financing to focus on "making key hires, expanding globally and improving the user experience with a focus on mobile, personalization and trust." While the bulk of gaming-related crowdfunding projects turn to rival platform Kickstarter for support, a number of high-profile indies have found success with Indiegogo. Lab Zero Games earned almost $1 million when it debuted an Indiegogo campaign to fund the creation of DLC characters for Skullgirls last year, and the newly-launched Square Enix Collective will use the platform to fund new projects from developers Ruffian Games, Kitfox Games and Tuque Games.
Oculus Rift gets $75 million in funding from Netscape founder's firm
Oculus VR received $75 million in funding from venture capital firm Andreessen Horowitz, led by Netscape founder Marc Andreessen. Oculus VR previously secured $16 million in its first round of funding in June. The company's Oculus Rift augmented reality hardware also earned $2.4 million on Kickstarter in September 2012 after reaching its $250,000 goal in 24 hours, which in itself was a testament to the appeal of the headset. "Over the past 16 months, we've grown from a start-up to a company whose virtual reality headset is poised to change the way we play, work and communicate," Oculus VR CEO Brendan Iribe said in a statement to VentureBeat. The company's growing support isn't just measured in dollars, as Iribe said the company sold over 40,000 Oculus Rift kits to developers that are working to create games and apps for the headset. Additionally, id Software Co-Founder John Carmack joined Oculus VR in August as the company's CTO before officially leaving the Doom developer in November.
Pebble receives $15 mil in funding, releases SDK and Sports API
The company behind the Pebble smartwatch, which not only looks awesome but connects up to your iPhone, has picked up US$15 million in funding from venture capitalists, and has released yet another version of its SDK. The funding is obviously a solid chunk of change, and should help Pebble not only fulfill its current orders (the company is still aiming to get watches out to all of its supporters from a successful Kickstarter bid), but push the company on into the future as well. This latest SDK release, called the PebbleKit, allows for two-way communication back and forth between the watch and your smartphone, which means there are lots of new options for apps to work with the watch as a display or even a remote control. The company has also released a Sports API, which should allow for GPS-enabled apps (like running apps) to send and receive information from the watch. Pebble's initial set of features was quite limited, but this API update should make a lot of new apps possible, and of course we'll likely see more in the future. You can pre-order a Pebble watch on the main website right now for $150.00. Or you may want to wait just a bit longer, if you happen to believe those crazy rumors about an Apple iWatch.
What do venture capitalists see when they look at games?
Kickstarter has gained a great deal of traction lately, but by and large new games are still funded the same way they've always been funded: by venture capitalists willing to shell out money in hopes of seeing a return on investment. That being said, the games industry looks at venture capitalists more as fountains of money than actual people, a necessary evil at best. A new piece penned by Jeremy Liew of Lightspeed Venture Partners sheds some light on what goes on behind the scenes when capitalists are approached for funding. Liew makes a point of mentioning that one of the features he looks for is the idea that the studio can turn out another good game after the first one, mentioning CCP Games and Jagex as both lagging behind. He also points out the power of community, noting that League of Legends gained much of its current popularity by completely taking over the DOTA community. While the piece is focused on gaming as a whole rather than just MMOs, fans of video games will no doubt find several points of interest within the full article.
OnLive was reportedly sold for roughly $5 million to venture capital firm
Even though weeks have passed since that well-documented OnLive kerfuffle took place, where unfortunate layoffs and the formation of a "new company" were at the forefront of it all, previously unknown details are still coming out of the woodwork. According to Mercury News, the once-promising cloud gaming outfit was purchased by a venture capital group for a mere $4.8 million, which appears to be a relatively small amount of cash for an outfit once valued upwards of $1.8 billion -- not to mention when compared to, say, rival Gaikai's $380 million sale to Sony. Still, this is said to have been due to the bad shape OnLive was in at the time, with the Palo Alto-based company reportedly owing more than $18 million in debt, leaving it with no choice but to take "the best that it could get."
The Soapbox: The trouble with Kickstarter
Disclaimer: The Soapbox column is entirely the opinion of this week's writer and does not necessarily reflect the views of Massively as a whole. If you're afraid of opinions other than your own, you might want to skip this column. It was right around the time that the Shadowrun Online Kickstarter went live that I started to wonder whether Kickstarter was doing some nasty things to the development practices of MMOs. This isn't a commentary on Shadowrun Online itself, exactly. The game asked for players to put up $500,000 to fund development, and while that's an awful lot of money to ask from the pockets of fans, it still doesn't qualify as being high-budget by the standards of the industry. But in some ways, it's the apotheosis of something that started with several other games being funded on Kickstarter -- this sense that Kickstarter is the path of the future, that it's the ultimate litmus test of whether or not your MMO is worth developing and a great way to draw in venture capitalists for more funding. I'm not convinced that this is a good thing for the health of MMO development. You can look at it as a way for strange niche titles to get their funding without convincing outside sources that it's worth the effort, but as we're ramping up to seeing the fruits of these projects (or lack thereof), I'm wondering whether it just allows ideas to get further along before they self-destruct.
Richard Garriott's Portalarium secures $7 million funding for iOS social RPG
Richard "Lord British" Garriott is in the middle of a new gaming venture called Portalarium (it's working on a social game for Facebook and iOS called Ultimate Collection: Garage Sale), and he's just been able to convince a round of venture capitalists to support his projects, to the tune of roughly $7 million.The money will also be used to build a social RPG tentatively titled "New Britannia," which may have ties to the Ultima tradition, as well as new school features like asychronous gameplay and social profiles.Portalarium was announced to be one of the launch companies in Zynga's upcoming partner program, so Garriott and crew are definitely laying the foundations to launch some large and well-supported titles. Ultimate Collection is supposed to be available to play sometime later on this year.
Ask Massively: Artists I actually dislike edition
For whatever reason, Rob Liefeld has become a mini-meme on my more meta columns of the week. He's a bad artist, yes, but as I've mentioned in the past, I don't actively dislike him. There are many people far more deserving of dislike. Case in point: Pat Lee. I'm not going to explain in depth right here, but suffice to say that the man has history of hobbies like not paying his employees and taking credit for the work of others. And he's not a very good artist. So let's move on from that meme, shall we? Great. Of course, if I'm talking about mini-memes on Ask Massively, that must mean that it's time for this week's installment, yes? Yes. And this week, we're talking about the now almost ubiquitous case of the Kickstarter project. If you've got a question you'd like to see answered in a future installment of Ask Massively, leave it in the comments below or mail it to ask@massively.com. Questions may be edited slightly for clarity and/or brevity.
Kickstarter talks to us about product 'pre-orders,' won't force refunds when creators flake
Kickstarter has proven an incredibly effective venue for connecting project creators with monetary support -- inventors pitch directly to consumers, indie filmmakers meet indie producers and food trucks get the financial push necessary to take their restaurants to the road. With the latter two, backers don't necessarily expect goods in return, save for an overvalued t-shirt, bumper sticker or film credit. When it comes to electronics, however, funders are often promised a first-off-the-line gadget -- one that may never arrive at their door. One oft-overlooked, yet critical detail should help curb expectations, while also serving to filter out pledges that are motivated by the pre-order promise, from those that offer financial support without a guaranteed return. Like it or not, all transactions fall into that second category. Pre-order offers may go unfulfilled, and some pledges may be reduced to donations, if a project creator ends up unable to deliver an item as intended. And such situations may not prompt a refund, souring the experience for an increasing number of hopeful device owners. Join us past the break for an explanation from the Kickstarter team, and a closer look at some recent examples.
Nokia could sell luxury Vertu brand to VC firm for $265 million
As much as it'd be interesting to see Windows Phone running on a $21,000 gold-plated cigar lighter, that's probably never going to happen. According to the UK's Financial Times, Nokia has been trying to hive off its luxury Vertu brand for months already, and has finally found a suitor with the right cash / sense ratio. Although still far from a done deal, we're told that venture capitalist firm Permira is willing to contribute up to $265 million to Nokia's needy coffers -- which might sound like a lot, but is mere costume jewelry to a manufacturer that just lost $1.7 billion.
Hawken developers raise $10 million in capital to launch
Tim Schafer's Double Fine Entertainment has made a lot of noise by getting fans to pay over $2.6 million for them to put together an old school adventure game, but here's a reminder that there are still some reasons to do things the old way. About 7.4 million reasons, in fact: Publisher Meteor Entertainment has reportedly raised over $10 million in funding for its upcoming multiplayer mech game, Hawken.Meteor raised the money by pitching its idea to venture capital firms Benchmark Capital and FirstMark Capital, the same companies that initially invested in the makers of League of Legends, Riot Games.Riot Games later sold for a rumored $350 million. Hawken (which is being developed by Adhesive Games) is also enjoying a nice bit of player interest already, with over 200,000 signed up for the closed beta, and lots more looking forward to the free-to-play launch. Schafer and company have done great things with Kickstarter, but there's still a lot of money to be made through more traditional routes as well.
Selena Gomez talks tech with TUAW
Before 2011, you probably only knew who Selena Gomez was if you had teenagers or younger children. But this year the young woman who plays Alex on Disney's Emmy Award-winning Wizards of Waverly Place has made her way into the mainstream spotlight. In the last twelve months she's starred in her second feature film, been hounded endlessly by paparazzi because she's dating one of music's biggest stars, was active in her role as a UNICEF ambassador, released (with her band) her third studio album while touring around the globe with them, and hosted the EMAs. And almost as if she's trying to squeeze everything possible into this year, she'll be working until the stroke of midnight on December 31st in New York where she'll be performing at MTV's live New Year's Eve special. Disney has also announced that the series finale of Wizards of Waverly Place will air in early January. All that would be a lot for anyone, yet there's still one more thing that Selena has done this year. This past November the 19-year-old pop star from Texas also became a tech venture capitalist. Along with CrossCut Ventures and a group of ten other seasoned investors, she took part in a first round of funding for the iPhone and Android app Postcard on the Run. The app, which I reviewed a few days ago, lets users turn any digital image on their iPhone into a physical postcard that can be instantly sent to anyone in the world. I've recently been finishing up a book on the cult of celebrity in America (and for research, reading way more Daily Mail gossip than could possibly be considered healthy), so when I saw Selena Gomez's name pop up on one of my tech news feeds instead my celebrity news feeds, I was taken aback. The November announcement said that Selena had become an investor in an iPhone app. But for the life of me I couldn't figure out why a nineteen year old who has so much other stuff going for her right now felt the need to do something so -- well, compared to all she's done -- so relatively small; not to mention something most others in the tech industry don't do until their late 20s or early 30s. Don't get me wrong, Postcard on the Run is a very good app. It's actually one of my favorites. But that's all it is -- a single app. And if you're doing it for the money, why not invest in a bigger app, or a developer who has lots of apps? I mean, Ashton Kutcher I get. He's another celebrity who is also a prominent tech VC. But his strategy is fairly obvious. Lots of investments (not to mention endorsement deals with tech-friendly companies like Nikon). Big portfolio. Big profits. But a single app with a first time developer? And at 19? So I contacted Selena's representatives and she agreed to an interview with me early last week. What I found out was something all of us reading this are familiar with. It's why some of us are developers and all of us are users. You get into it because you love the product. Because you can't stop talking about it and you want to be part of it -- any way you can. That's exactly what happened to Selena. In September she was stuck on her tour bus between performances; she came across Postcard on the Run in the App Store and started sending postcards with it. "I have my iPhone with my all the time that's why I think Postcard on the Run is such a great concept. The one thing people have with them at all times is their phone and the app makes it so easy to send cards and keep in touch with people in a more personal way," she tells me. "I got excited about something and wanted to be a part of it." At first I think "what's wrong with email?" but then, perhaps channeling a bit of my mother, I do have to admit a physical note is more personal than an electronic one. I ask Selena if she thinks there's room for both traditional and electronic greetings in the future? Does one mean more to her than another? "I really think it can be a combination of both," she says. "There's something really nice and special about sending and receiving mail the old fashioned way. Who doesn't like getting things in the mail?" A Twitter fan base of 9 million. Check. 25 million "Likes" on Facebook. Check. Likes to wait for something in the mail? Uh, check. Who knew? After deciding she wanted to get involved it was time to contact the app's creator, Josh Brooks. I ask her if Josh thought someone was playing a prank on him at first. I mean, if I got an email from "Selena Gomez" saying she wanted to help any way she could on my next book project, I wouldn't take it too seriously. She laughs at my question, but shrugs off the suggestion. "I actually talked to my stepdad about it and he and I reached out to Josh directly," she says. "But yeah, Josh was pretty excited." For his part, Josh tells me that he didn't disbelieve the email, but he did admit to using Google for what it does best. "And so I checked it out and everything made sense. It was way interesting and we had a couple more emails and then hopped on the phone." When asked how long it took from that first email to the time she officially came on board Selena says, "Not very long at all. I guess it took three or four weeks." But the timing turned out to be serendipitous. Before Selena contacted Josh, he already had a number of angel investors committed along with CrossCut Ventures, and they were looking to finish up the financing so he could take the app further. Though Selena nor Josh are releasing individual investment numbers, the closing round that Selena invested in was $750,000. I asked Selena why so many celebrities seem to be getting into tech investing. From an app developer's standpoint, it's good press. But besides financial incentive, is there any other reason for the celebrity to do it? "I can't speak for others but for me, having grown up in the 'digital age' it feels like a natural," she says. "I'm always on the go, and the one thing always with me is my phone and I'm excited about being part of a technology that helps people stay in touch in a real way. Postcard on the Run's technology has the added benefit of working in conjunction with projects or initiatives I'm working on directly." As she tells me about the features of the app, you can tell her love for Postcard on the Run is clear. "I genuinely like [POTR's] approach to the online/offline space. It's super simple -- that's key." Like anyone else, I understand liking a product and wanting to get involved, but I ask Selena what an actress and singer could bring to an iPhone app? Especially one that had it's territory invaded by Apple and its Cards app. I mean, she's already conquered television, movies, and music. Did she really feel like she needed another challenge? But this is where she gets back to that something no one can argue with: "I don't think it's as much about taking on Cupertino, but creating a product that people will use, love and share." In other words, worry about the product, not the competition. As for what she can contribute, Selena doesn't pretend to be a Silicon Valley wiz or tech titan. She openly admits that -- at least in the app world -- she's still a fresh face. "This world is somewhat new to me, but Josh and I have a really comfortable relationship. We're constantly in touch regarding everything from product updates to looking at new ways to incorporate Postcard on the Run into other projects and campaigns. More than anything, at least for now, our main goal is build the profile of the company." And with star power like Selena's, building the profile of the company shouldn't be much of a problem. I ask her how her name recognition has affected download numbers, to which she modestly replies, "There's been a jump." When I asked others who know Selena what she is really like I got answers of "great person," "super sweet," "family oriented," and "She's one of the most warm individuals at her level that I've ever met." Add "humble" to that list too. So I ask Josh how much Selena's involvement has helped. "Selena's strength is not only her ability to reach a younger audience, but it's also to speak to just a different culture that is so digitally friendly. I almost look at her as an ambassador to Postcard on the Run as she can help carry our voice to a different audience," he tells me. "When she makes an announcement about Postcard on the Run you see [download] spikes that are ridiculous. It's out of control. It's tens of thousands of downloads as a result of her supporting or pushing out something cool that's happening with Postcard on the Run. People really want to engage with her and she has fun doing it." There's the boastfulness I was looking for. But Josh, who has a deep history in the talent and music industry, is also earnest in his reply about Selena's role as a creative advisor as well. "If you're between the ages of 16 and 22 your skill sets are just different than ours. She personifies this really interesting, multi-thread of a talent like no other. She's extremely real and genuine about how she sees this stuff working." For now, Selena is happy working to help make Postcard on the Run a success and told me she has no other plans for any other app investments at the moment. She'll be busy performing and promoting well into 2012. However, if you're hoping to get her attention with your app she did tell me she generally likes word games and photo apps. Just make sure those apps are built out of a passion and not solely for profits. Note: Love Selena? Love postcards? Check back the Tuesday after Christmas for a sweet promotion and giveaway from Selena, Postcard on the Run, and TUAW!
Insert Coin: YouTurn accelerometer-based turn signal system for cyclists
In Insert Coin, we look at an exciting new tech project that requires funding before it can hit production. If you'd like to pitch a project, please send us a tip with "Insert Coin" as the subject line. Many of us who bike in the city ride in constant fear of being tapped by a taxi cab, or crushed by a bus. There's no way to completely eradicate the risk of being run over by a much larger motorized vehicle, but making yourself easily visible -- both at night and during the day -- can certainly make a difference. Smart cyclists use hand signals long before they need to make a turn, but the YouTurn signal system aims to make those indicators difficult for drivers to miss, with an accelerometer-based gadget that illuminates an arrow in the direction of your turn. If you want to turn left, for example, simply point your hand to the left, and the device will flash a giant yellow chevron. The prototype you'll see in the video below is integrated with a glove, though the final version will simply attach to the back of your hand, and can be stored in a bag when you're not on your bike. There's no mention of durability or waterproofing, though since the inventor's objective is to enhance safety, we imagine he'll be taking precautions to avoid electrocution in the rain. YouTurn inventor Jack O'Neal launched a Kickstarter page to help fund his project, and is accepting preorders at $50 a pop. There's no final pricing listed at this point, but at 50 bucks for a first-run YouTurn, we were happy to make the pledge. We hope to see O'Neal meet his funding goal and send these to production, but until then, we'll keep looking both ways and hoping for the best.
Nuclear fusion startup gets Jeff Bezos backing, won't be dropping any bombs
Here's a phrase we never though we'd utter: Bezos is the bomb! Okay, so maybe a nuke reference isn't exactly appropriate here, considering Jeff Bezos is actually backing a company that's looking to create cheap energy through nuclear fusion, but we couldn't resist. General Fusion, a nuclear fusion startup, released a statement today saying that it has completed a $19.5 million round of funding that included backing by the Amazon founder's Bezos Expeditions. According the company's website, General Fusion's approach to generating "safe and plentiful" energy employs a concept created about 30 years ago called "magnetic target fusion," and expects commercialization of its process could come before the end of the decade. Full PR after the break.
Glitch entering beta stage
According to a new post on its official website, Glitch is finally entering an official beta phase. What's Glitch? It's a browser-based side-scrolling MMO from Stewart Butterfield and Cal Henderson, better known as the co-founders of Flickr. Glitch originally began its alpha testing phase a year ago, and Butterfield writes that while the developers didn't anticipate such a lengthy delay prior to the beginning of beta, the time has been well spent. "Hundreds of features have been added -- and nearly as many trimmed or re-thought -- thousands of pictures drawn and animations made, hundreds of thousands of lines of code written, all of it powered by support, feedback, patience, (and impatience!) from our testing community," Butterfield wrote. He also mentions a substantial infusion of capital as well as the fact that Tiny Speck is hiring, so regardless of the delay, it seems as if the title -- and the company -- is building up a head of steam. Check out the full details at the official website (where you can also sign up to be a tester).
Apperian picks up first enterprise iFund payout
The iFund has been pretty influential ever since it was announced a couple of years ago -- it's a pool of money set up by Apple and a few other companies to support and grow companies that are contributing to the iOS ecosystem. It's been growing along with Apple's platform, and now the fund has made its first contribution to an enterprise developer. Apperian is a company that helps enterprises create and deploy their own mobile apps, and it's picked up $9.5 million in a round of funding that includes money from the iFund. We've covered the use of iPhone and iPad in business quite a bit, and Apperian sits squarely in that wheelhouse, consulting with various companies on how to create and securely distribute their own mobile apps. iFund's Matt Murphy says that Apperian is riding the wave of mobile devices that are showing up in the corporate workplace, and that "Apperian's solution is perfectly timed to help enterprises rollout and manage all their applications across their employee base and its wide variety of smart devices." Sounds like a solid plan. It's excellent to see Apple's platform growing in all kinds of different directions.
