Funware Development sold

February 5, 2012

Funware Development is a small startup I started a year and a half ago to develop games for social networks. A few weeks ago I pulled the plug and sold it to a company from Moscow.

Funware Development was a really lean startup. So lean that the max number of employees working for it (myself excluded because I didn’t get salary) was 3. Nevertheless, we delivered over 10 games and applications to Odnoklassniki, Moi Mir and VKontakte social networks. The total number of installations of these apps is just under 14 millions. Several months ago we were among the top 20 companies (for Russian social networks) based on these numbers. Despite the large number of users, the monetization didn’t go well, and eventually it became clear that the thing just wasn’t worth the trouble. If you are interested in numbers, the total revenue (including the sale of the company) was about $26K with all the costs totaling in about $26K. That’s right, the total profit over the startup’s life is about zero. It’s not as bad as it sounds, because most startups don’t even recover the money that were spent on them.

We surely made many mistakes along the way, and it is clear that we could really make it work. The hindsight is always 20/20 though. I’ve learned so many new things that no amount of reading other people’s blogs could deliver. Lessons learned, moving on.

The picture above is an actual screenshot from the site before I took it down.


MobileNoter in 2011

January 15, 2012

2011 was a monster year for MobileNoter. We didn’t get to our goal of 100,000 customers by the end of 2011, but still we are several tens of thousands users in. If you decide to compare these numbers to other services, like Evernote or Catch, remember that these are paying customers we are talking about, not people who download free stuff with the intention of never paying. The 100,000 customers milestone is postponed to the year of 2012 now.

Microsoft released Onenote for iPhone in January and then Onenote for iPad in December 2011. What’s good about these releases: first, they determined the price and trial terms. It will definitely influence our decisions in the future. Second, their release allowed us to differentiate our product from theirs pretty easily. Microsoft provides basic access to their Skydrive stored notes, which is totally free for everyone except power users. MobileNoter gives you full access to the notes stored on Skydrive, Dropbox, your computer, while preserving all graphics, drawings, and provides complete Onenote for Windows experience on the mobile devices. The release of Onenote for iOS from Microsoft has some positive and negative impact on us. Overall, it is a somewhat neutral event.

Android was our top platform in 2011. The sales of MobileNoter for Android went from zero to more than that of for iOS during the year. Two factors helped: exceptionally great releases of MobileNoter for Android and skyrocketing growth of the platform itself. Even MobileNoter sales in Amazon Appstore showed significant growth despite a slow start. The Kindle Fire is to thank for this.

We expect to have some great releases of MobileNoter of iOS in 2012, so this platform is not to be ignored. The dominance of iOS over Android is however evaporating and soon it will be gone forever, as more as more developers find their income from Android growing over that of from iOS.

Our plans for BlackBerry lost some priority as the year of 2011 clearly demonstrated that the platform is struggling to survive. If the enterprise mobile users move to Android/Windows 8 and leave RIM products, then those Blackberries may never see a native MobileNoter and thus receive access to their Onenote notes.

Finally, 2011 was the year when MobileNoter as a startup reached several important financial milestones. If you ever ran a startup, you know what I’m talking about. We never doubted that the day would come, but it’s nice to actually experience it.

 

 


Microsoft money machine

December 4, 2011

Just in case you wonder where Microsoft takes all that money, here is its business split up, brought by Business Insider. These are mostly not official numbers, just analytical estimates:

Windows (desktop)

$19.0B

Office

$15.0B

The Xbox and all its related businesses

$8.3B

Windows Server

$6.0B

SQL Server database software

$3-4.0B

Online advertising on Bing (including Yahoo Search), MSN, and other properties

$2.3B

Exchange Server

Over $2.2B

SharePoint, collaboration and portals

Over $1.5B

Skype

$1.2B

Dynamics, CRM and accounting software

$1.1B

Visual Studio, software development tools

Over $1.0B

System Center, server management software

Over $1.0B


Kindle Fire is a firestarter

November 27, 2011

Amazon released their Kindle Fire only about a week ago, but the sales our MobileNoter in Amazon AppStore have exploded. They are still not as big as those of the Apple’s or Google’s appstores, but an increase by 5 times is a nice thing. Amazon AppStore is definitely getting some traction after all. That’s why we are going to release our HD version into Amazon – it should be approved any day now. Also, we are going to do an update to our Android versions of MobileNoter with some really nice features in December this year.


Google Android market vs Amazon Appstore for Android

July 2, 2011

Update: as of November 2011, our Android version of the app outsells iOS version of the app.

Since our release of MobileNoter SE into Amazon Appstore two months ago, our sales have been growing steadily, but one thing remains the same: Google Android market outsells Amazon Appstore by 10 times. In other words, an application that brings $10K of monthly sales in Google market will sell for a total of $1K in Amazon market.

The ratio is pretty accurate, because we sell exactly the same application, and we don’t have any marketing or PR targeting specifically any of the markets.

And from the Captain Obvious department: both of these markets, even combined, are still being dwarfed by the Apple AppStore sales.


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