Venture capitalists appear to be rushing to “check in” with location-based social networking startups that are experimenting with ways of harnessing user’s data from mobile phones.
Earlier this month,
Accel joined previous investors
Booyah co-founders, who include CEO Keith Lee, Chief Creative Officer Brian Morrisroe and CTO Sam Christiansen, each previously worked at gaming company Blizzard Entertainment, which produced such popular titles as “Diablo” and “World of Warcraft.” In announcing the funding, Booyah said that the company will hire people and invest in new projects, details of which have not yet been disclosed.
The company’s signature game “MyTown” has been likened to a real-world Monopoly board game. However, users can purchase upgrades from the company to enhance their enjoyment of the game, similar to how Zynga Game Network monetizes FarmVille and other games on Facebook.
Booyah reports it has 2 million users of “MyTown” and is growing at 100,000 users a week. However, it is unclear how many of the users who are downloading the app proceed to spend money. Booyah’s founders have pegged the number of buyers at about 5% of its users.
For about the last five years, startups have tried to integrate data from GPS-enabled phones into a number of different applications. There are location-based advertising startups, location-based dating startups, location-based social networking startups and location-based microblogging startups. Booyah is believed to be one of the first startups to try to utilize location data for gaming.
Other startups are working to integrate aspects of gaming into their location-based social networks. For example, Loopt, a Mountain View, Calif.-based location-based social network, is working to create a scavenger hunt-style game for its popular mobile phone application, according to reports.
To date, Loopt has raised $27.5 million from
New York-based FourSquare makes a sort of game out of checking in to certain locations, awarding active participants with virtual badges to mark their achievements. The company has raised $1.35 million from venture capitalists, including
Foursquare, which was co-founded by entrepreneurs who previously sold a location-based social networking company called Dodgeball to Google, has similarly been likened to Booyah. However, Foursquare is more about users telling friends where they’re at and earning real world discounts from certain retailers, while “MyTown” is about visiting places as part of a social gaming experience. —Alexander Haislip