European Founders Fund backs virtual world for kids creator Dizzywood

Written on 27th August 2008                                                                                                              5 COMMENTS
Robin Wauters, Next web enthusiast & Plugg organizer

The European Founders Fund, the investment vehicle of the infamous Samwer brothers, puts money in social networking sites other than Facebook. According to a regulatory filing picked up by peHUB, the EFF has invested $1 million in Series A-1 funding for Dizzywood, a San Francisco-based creator of entertainment websites for kids.

“Dizzywood is a fun virtual world for kids where you can play free games, explore unique and imaginative areas, and meet new friends in a safe environment. Whether it’s a visit to a Mayan-themed jungle or a super power challenge to defeat Emperor Withering, Dizzywood offers children ages 8-12 the opportunity to create their own adventure, cooperate with other players in exciting games and challenges, and have fun while learning.”

Virtual worlds for kids is certainly a hot space: both RocketOn and Knowledge Adventure recently raised $5 million second rounds, Gaia Online took $11 million in a third round and Disney recently acquired Club Penguin for $350 million (with $350 million in earn out).

Dizzywood won the Best in Show Award at the 2008 Under the Radar Conference. Last February, TechCrunch reported that the company had raised $1 million Series A in a round led by Shelby Bonnie with Charles River Ventures with other individual investors also participating.

Dizzywood has notable founders, including Scott Arpajian, who headed CNet’s Download.com for over a decade in the past, ex-Microsoftie and former Wallop CTO Sean Uberoi Kelly and Ken Marden.

(Hat tip to Paidcontent)

Dizzywood, European Founders Fund, kids, samwer, samwer brothers, virtual world

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European money for the Valley: Samwer brothers invest in Facebook

Written on 16th January 2008                                                                                                              3 COMMENTS
Ernst-Jan Pfauth, editor in chief

The Kopy Kat Kidz, German Internet entrepreneurs Marc, Oliver and Alexander Samwer, have invested in Facebook, reports TechCrunch this morning. They’re famous for bringing international successfully concepts to German soil – hence the Kopy Kat nickname – yet now they seem to have changed their strategy. So here comes the European money, Silicon Valley!

It fits perfectly in the trend of US based social networks developing local editions of their pages. Facebook probably just wants their knowledge and local market insights, which the Samwer family definitely has. Some examples of their copies of international success stories:

• Back in 1999, the Samwer brothers created the German auction site Alando, basically a Ebay rip-off. Ebay solved it monopolist-style and bought the site months later for 43 million dollars.
• After that they started Jamba, a ringtone company. Millions of people still hate them for the irritating, yet successful, Crazy Frog ringtone. I don’t think the Samwers care though, since they sold Jamba to US based company for 273 million dollars in 2004.
• They’ve invested in German Twitter look-a-like Frazr.com
• German student networking site StudiVZ also got some help from the three Samwers. Before they sold it to a German publishing group for 100 million euro they reportedly tried to sell it to Facebook in return for a five percent stake.

So they failed in their last try, but now they’re back using their knowledge of the German market internationally. Is this the beginning of a trend: European investments in US based companies in order to create local sites?

[WebTipr: David Petherick, United Kingdom]

ebay, Europe, facebook, germany, samwer, social networks

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