Yesterday at the Startup Lessons Learned conference in San Francisco, Brett Durrett, James Birchler and Timothy Fitz from avatar-based social network and 3D virtual world IMVU took the stage and talked about scaling startups (worth your time).
In this video – I’m not sure how long it has been online already – Rosenzweig boasts about the company’s profitability and cites its annual revenue run rate, which he says is now at $40 million.
This means that if you multiplied the company’s current monthly revenue times 12, you’d get $40 million. Notably, that’s up from a $25 million annual revenue run rate back in October 2009. That’s a lot of growth in income in roughly half a year.
So how did revenue increase? Simple: more users buying and earning credits in the 3D world and buying virtual goods, such as clothing for their avatars to furniture for their virtual rooms.
On a sidenote: in charge of revenue generation at IMVU is Lee Clancy, formerly Senior Director for Community Products at Yahoo.
IMVU was founded in 2004 and is backed by $29 million in venture capital, raised over 4 rounds. The company employs 60 people in Palo Alto, California, according to its website.
In October, the company claimed more than 40 million registered users and 6 million unique visitors per month (numbers they also use on their about page), but I’ve been unable to retrieve more recent numbers.
(Thanks to Kyle Mulka for the heads up)
Founded in 2004, IMVU, Inc. (www.imvu.com) is a social entertainment company connecting users through 3D avatar-based experiences. A leader in developing online communities, IMVU has more than 100 million registered user accounts worldwide and features the largest user-generated virtual goods catalog of more than 10 million items. Located in Mountain View, CA, IMVU is backed by venture investors Menlo Ventures, Allegis Capital, Bridgescale Partners and Best Buy Capital. For more information, please visit http://www.imvu.com.