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buyimvu.com>>News2009 >> Some Startups Adding Muscle in Tough Economy
Some Startups Adding Muscle in Tough Economy

BigFix's Robbins, too, attributes his company's recent growth to intense pressure that corporate executives are under to hold down costs. BigFix is increasingly looked to as a way to efficiently manage an enterprise-wide computer system, reducing man-hours and power use.

"The message is: If you don't save money, you'll lose your job," Robbins explained. Cost-effective management systems, he said, are "now an absolute requirement. It's not a 'nice-to-have.' ''

BigFix, with more than 100 employees and revenue of $50 million to $100 million, will position itself for an initial public offering at some point after Wall Street stabilizes, Robbins said. Facebook and LinkedIn are also considered strong candidates for an IPO — but only in a more stable market.

IMVU Credits , meanwhile, may seem the most improbable success in such a dour economy. The company, according to Rosenzweig and investor Spencer Tall of Allegis Capital, is on track to become profitable later this year.

Cheap entertainment

It's success, they suggest, may reflect the continuing appetite for inexpensive entertainment. Online gaming sites, too, are attracting strong venture capital interest and traffic.

Unlike most gaming sites, IMVU's virtual 3-D chat room enables users to scratch the shopaholic itch. The site attracts about a million visitors a month, Rosenzweig says, about half of whom are teenagers. And the generation that has grown up with the Internet, he pointed out, doesn't make a distinction between the virtual world and the physical realm. IMVU Credits has improved the user experience, including the addition of music in October.

Rosenzweig said he started seeking more venture funding in September, shortly before the economy shifted into crisis. He was able to show investors how IMVU Credits  was accelerating through the economic wreckage. In January, it landed a new $10 million round, led by BestBuy Capital, the venture arm of the retailer.

So even a big-box store in the real world is betting on the sale of virtual merchandise.

[Source:Original] [Author:Admin] [Date:09-05-05] [Hot:]

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