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March 3, 2006

IMVU Lands $9M

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Posted by Dave Evans

Avatars are hot. I've got 'em in SecondLife, Yahoo Chat, not to mention a few for bulletin board posting. Yahoo chat avatars are the easiest to create but you can't do much with them, they just stand there. However, I love the audibles. Flirting, taunting and soundbites from bands add a lot of laughs to the conversation.

IMVU is similar to Yahoo Chat avatars, taking it to the next level with a window for interacting with other avatars, and general movements. Kind of like SecondLife Lite. Here's a review of IMVU. I tried IMVU last year and was not impressed. PC only, clunky and it crashed a lot. Today it looks a lot more polished, enough that Allegis Capital and Menlo Ventures pumped $9 million dollars into the company. PaidContent describes IMVU as a cross between avatar-based services, IM and social networking.

That is a heck of a lot of cash for a 3D chat company, especially after you see CrazyTalk. As one of the founders of the Boston Computer Society Virtual Reality Group in 1993, I'm more excited by CrazyTalk, which is almost movie-quality CGI. Reallision, the makers of CrazyTalk, offer a studio for creating avatars, a messenger product and virtual hosts like Oddcast. They have a deal with Skype, and it's very cool to use while chatting.

Everyone is in a rush to offer add-in avatars and video and photo-sharing services to Myspace. The problem with the Myspace add-ins is that only a small percentage of users will pay for them, you have to either license your product or stuff it with ads or try to lure people back to your website. I can't imagine VC thinking they are investing in a free MySpace add-in, they're probably betting they can find find someone to buy the company.

Enticing people to download yet another instant messaging client is going to be very difficult. IMVU is a kludgy PC-only application with windows 3.1 interface populated mostly by teenagers. Competition is fierce and offers far more mature products and services. Yahoo chat is free, works great and the Mac version is coming out shortly.

IMVU is not a clear winner by any means and they have their work cut out for them.

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Comments (11) + TrackBacks (0) | Category: innovation


COMMENTS

1. barbara on April 10, 2006 12:44 PM writes...

listen.... imvu is not just for teenagers, there are a lot of adults in the program as well.And yes they have a lot of work cut out for them, but they are far far better than yahoo. The reason why? because when you go to a chat room in yahoo, your so damn blown up by people iming you that your computer crashes.there is no way to avoid it. and if you do manage to stay in a chat room long enough to chat, you either cant understand what they are saying.....or you wish you didnt if you know what i mean.So please quit downing imvu... yes they have things to still fix but they are far more advanced and far more enjoyable than yahoo.

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2. Jade on May 20, 2006 7:30 PM writes...

I Personally disagree I know bout 10 and many more ppl that are other the legal age of "Teenager" on Imvu.mature content there isn't much so a the content you that every one can get so that's a Lie.....Yes it is cautioned that Good computers should use it but with are modern day you think ppl would have computer that can pack alotta memory into it. I'm a proud member Imvu is better then most messangers around.

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3. Ash on June 15, 2006 12:13 PM writes...

IMVU is a horrible messaging service. If I wanted to chat with my friends, I'd use AIM.

However, my girlfriend and I are in a long distance relationship, and with IMVU, we can go on little "virtual dates," it adds a new level of depth to our relationship when we're apart.

Anyway, you have to keep in mind that IMVU is still in the Beta stages. Of course it's got a lot of work to do. It's not done, yet.

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4. Prissluciana on July 28, 2006 2:28 PM writes...

I've been chating with IMVU for about 48 hours now, i got sent the invite by a friend and so far i love it, if you constantly random chat, credits are easy to come by, so you can completly customize your avatar how ever you see fit, plyus if you like doing digital artwork, you can even make money off this thing...which is a huge bonus compared to other chat programs...though the thing i like most about imvu so far, is that some how, some way...when random chating i always come across people i like, every 20 or 30 mins i'll random chat a person and converse with them for hours, last night i spent 6 hours chating with a girl whomb i met through randomc hat....coinsadence? perhaps...

its weird...but i still like it...

the only problems i'e noticed is..its tricky deciding what to buy sometimes, because the previews arn't always true....sometimes the picture might have other articles of clothing in it that might -seem- to be a part of the clothing you wanna buy but arnt...for example i bought a mini skirt that i thought came with fishnets...turns out the fishnets were indipendant of the skirt and i ended up wasting my credits(the skirt was cute and all, but..without the fishnets i didn't really need it lol) another terrible thing about imvu is the glitchyness, and the all to often 'failed to connect' error...

its happened twice sense i signed up, i get the error and it blocks me out for upwards of 45 minuets...and sometimes the webpage just goes down without warning...clearly the program is still beta and the servers are growing faster than their cases can shed so they can grow new ones....but i delt with this with wow(world of warcraft) for long enough so i'm used to it

As for it being for teenagers...i dont know...i've only met one person over the age of 30, the rest were 16 to 24...so i'm not sure...most of the time thought hey are 18 to 22....


hope this review helps out....and if you decide to join imvu...email me first so i can send you an invite and get free credits *snicker*

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5. scarletwasp on August 2, 2006 8:13 PM writes...

i have been involved with imvu since dec. 2005. i love it, i hate it.. lol... you can't have one without the other i've noticed with anything i've gotten involved with. imvu has problems, but it also gives you opportunity that you've never got before. i have become a developer with imvu like lots of others, but i never knew anything about developing until i took a chance, now because of imvu i am able to do so much more with my computer than i ever thought i could. so bravo imvu for giving me the opportunity to grow as a developer. yes beta beta beta, we hear this all the time and it's been in beta for years now..lol... so blah!!! i hate the crashes, the horrible updates that mess ppl up all the time, the security can sometimes suck, but addicting as it is, if you love it you will stay with them and work through it all with them. i make credits to buy clothes and scenes, and most of all to buy my friends things so i can hear them smile... there are alllll ages on imvu.. i talk to younins, middle age, and even grandparents, so it's who you choose to find on imvu to share your time with. that is the great thing about imvu, you are in charge of who you wanna chat with... so quit being so negative, go to imvu and release yourself from your stuffy you..

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6. angenz on August 9, 2006 1:01 AM writes...

Well said, Scarlet. I actually came across this blog while searching for resources that can be used with IMVU. Since I am here, I thought I may aswell at my two cents to the topic.

Dave, I do agree that there are many teenagers in IMVU but to say that it is populated "mostly" by those teenagers is more an opinion than a fact. It is also rather bias, that you compare IMVU to the likes of Yahoo which by no means - offers the interactive functions that IMVU does.

However, since you like to compare the two - I will reiterate on what Barbara has already stated. Yahoo might be free and include other capabilities and versions that IMVU does not but at the end of the day - only one of them allows you to be a fully functional avatar who can move around, perform gestures, situate yourself in a real-type scene and most importantly avoid all the foul and disgusting language that is often seen in Yahoo Chat.

As Scarlet so wonderfully stated "quit being so negative". It has been a full year since you wrote this article. Perhaps it is about time you brought it up to date.

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7. relaxedguy [TypeKey Profile Page] on August 9, 2006 7:37 AM writes...

Angenz, I wrote about IMVU six months ago, not a full year. I didn't like the general user interface then and still don't. People who like Cyworld will love it I'm sure. For the rest of us, there are too many other options that fit the bill. I was comparing IMVU with Yahoo chat, which has a long way to go to catch up with IMVU when it comes to interactivity. Full functionality vs. partial is one aspect where IMVU is clearly surperior. Then again, look at Crazy Talk and other competitors. Much better animation and riding the popularity of Skype.

IMVU is like SecondLife in a chat window. For some this is exactly what they need. For the rest of us, the next year or so is going to show which 3D chat clients stand out as new entrants try to gain market share via social networking sites.

How does IMVU avoid "fould and disgusting" chat?

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8. ChenelleLynnisa on August 12, 2006 9:34 AM writes...

if they landed $9m whats all this about them being so broke and they keep rasing the prices?!

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9. ascenda on August 17, 2006 11:14 PM writes...

To answer your question relaxedguy, the easiest way to avoid foul language is to click on the Big Red X located in the right hand side of any window. Isn’t that what it is there for to CLOSE the window?

IMVU does have numerous ways to avoid foul disgusting language and also has ways to protect its community members against other abuses as well. If a chat becomes abusive in nature there is an option called "REPORT ABUSE" in the chat window. By clicking on this button it logs and notifies IMVU staff of the situation. Also, you can block certain members from accessing your avatar homepage, by simply clicking block user in your messages panel.

IMVU also has added a new mode feature called "ADULTS ONLY", which enables only adult members to speak with one another. I think the reason they did this was because of all the ADULT users who had wanted this feature. I am 30 years old and I find plenty of other adults to chat with.

IMVU is a good program for matchmaking and socializing. A wonderful tool which IMVU has is called "search for users". You can search by age sex location etc or combine different search options to narrow a certain type of user down. Another cool feature IMVU has is called “SHOUT CAST�. When You click on this feature insert a topic or theme for chat, and it sends the message out to the IMVU main page, where other users can see your profile picture and theme and join if they so desire. In addition, located on your avatar homepage is INTEREST PANELS�. You simply write a list of the things which interest you, and if you want to find other users by interests which match yours just click on a particular interest in your own panel and magically every user who has that same interest will be listed with their profile picture and interest. How nifty is that eh?

I could go on and on about the new wonderful features that IMVU has inserted into this program since I first started back in January 2006, but I think you can clearly tell by now that I do enjoy and support IMVU.

IMVU is not a perfect community, but IMVU is definitely a community which an avatar can evolve and grow with! Don’t take my word for it though, sign up is free go and check it out for yourself ;)

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10. aniziia on September 11, 2006 4:15 AM writes...

good idea, beta is a good word for it! I'll be more interested when it performs smoothly and has more life like options. Too many people looking for cyber sex, where has the art of converstation gone? the young ones are ok but the 16 to 25 year olds are a complete pain in the.. you know where!

Love the clothes! totally adorable, perhaps someone should offer real versions for sale, could become a fashion statement!

hope it continues to grow and allows more real time 3d action. Thanks for trying IMVU! I'll keep my account open and watch you grow

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11. Jodi on October 3, 2006 2:18 PM writes...

I'm not really sure why everyone decided to jump down Dave's throat. I agree with him quite a bit, though I do side with others that Yahoo is a far cry in comparison to things like IMVU or SecondLife.

IMVU is definitely made up mostly of teenagers, just go to the forums if you don't believe that. Mostly means the majority of, it doesn't mean there aren't people 20+ hanging around, the better half of the leading developers are at least close to that. And I think that BECAUSE the majority are teenagers is the only reason IMVU is staying afloat, let alone making 9 million, which I'm sure we'll never see put to good use. Mommys and Daddys spend crazy amounts of money on their kid's account. IMVU is very addicting when it comes to keeping your avatar in style, and no one wants just one measely outfit for long with all the new products coming out every single day. Not to mention the fact that young, role play loving teenagers won't complain about the overall unreliability of IMVU in the numbers that adults would.

I like IMVU for the most part, or obviously I wouldn't put as much time into it as I do. Nonetheless, everyday I see more and more of the makeshift reliability and bad choices that the ones in charge of the system tend to make. But who knows, if IMVU doesn't get out of the 3 year reign of the BETA version, Yahoo might catch up and surpass it. At this point I don't doubt it.

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