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January 30, 2008
Why Too Early Mobile Social Startups Are Heading To The US
Europe has a reputation for being ahead of the US when it comes to mobile services but for mobile social networking ventures that have had some early success in Europe, the US is the place to be. Why? Because mobile network operators there are reportedly rolling out flat rate data plans faster than elsewhere, which startups hope will enable some quick growth.
Maybe mobile social networking is compatible with making money-- if you have a good few years to work at it, are able get brands like MTV to sign marketing deals, and are able to balance working with cellcos, while building up something off-deck, at least that how it sounds for Australian startup FunkySexyCool and Germany's GoFresh.
GoFresh is a white label mobile service provider that also runs its own wap site called itsmy.com. Five years old, self-funded, it employs 15 people full time. The company generates revenues by selling advertising on its own site, and collecting fees from the mobile network operators that use its platform.
It has also developed new software to better manage the ads and advertising sales aspect of the business.
We recently talked to Mikko Saarelainen who co-founded the company along with his brother and two other ex-Iobox employees. Right now what he's concerned with expanding penetration of the US market. He said that operators there have more wholeheartedly rolled out flat rate data models - key to growing the itsmy branded site.
The US market is also the current target for FunkySexyCool, another similarly-oriented venture, that has made some headway getting on-deck with operators in Germany and its home market Downunder. This one we read about in profile in the Australian edition of The Age. .
It has been in business for more than four years but "drawing traffic and building the brand" is still its focus. Although it is generating some revenues, the article says its raising capital for a push into the US after it put the foundation in place for greater volumes of users. Its founder said he's looking for growth there but also sees the US as providing the exit opportunity.
View GoFresh
View Funky Sexy Cool
Posted on January 30, 2008 05:04 AM | Posted to News And Updates | Permalink
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