Capital Chaos

WeGame (San Francisco, CA) just reported that they have pulled in $3M in Series A financing for its video based gaming site that allows users to upload screencasts of their favorite in-game moments.  Think of it as a YouTube like interface that lets you brag about your mad gaming skills to others in a video format as opposed to text so people can really see that you did what you say you did.

While capturing screencasts of gaming has not been easy in the past, WeGame provides a free client that works with DirectX which allows you do this without degradation of the speed of the game too much - often times a problem in the past. 

The company was founded by Jared Kim who is all of 19 years old and a dropout of Berkley to pursue his web dreams which seem to be working since this is his third startup.   This latest round comes on top of the $500k Kim used to start the venture just about six months ago.  It was led by True Ventures with participation from HitForge and SoftTechVC and also included several individual investors as well.

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True Ventures (Palo Alto, CA) is one of the most highly regarded early stage VC that really focuses on entrepreneurial spirit and growth opportunity.  They are all about partnering with people who passionate and committed to their idea and business.  While that may sound basic 101 in VC lingo, since True Ventures likes to get in very early, they are usually the ones who see the good, bad and the ugly (hopefully less of the latter) so they know what they are looking for.

With $150+M under management, they sure arent the biggest group in the Valley but since they are such early stage investors, they dont need to be either.  As they put it, “We target the newest entrants into the largest emerging technology markets, including software, Internet, mobile, and digital media. The long-term growth potential of these markets are outstanding. We see it all around us in the global adoption of high-speed internet infrastructure, next generation open API architectures, vast shifts in the way people create, share, and consume media, and the proliferation of mobile technologies.”

Like all other VC’s who are early stage investors, they are all about the people.  The idea is somewhat secondary in that if you dont have the right people to execute the idea is worthless.  The firm has invested in over 60 early stage companies so they have seen a lot of the younger ideas out there and helped seed many to get them started. 

Their mantras are actually pretty good to live by for the early stage company and they are:

• Show us your bold ideas, not an incremental improvement.
• If there are four other players in your market, find another market.
• We target an investment amount that’s right for your company.
• We don’t like buzzwords. No, we really don’t. Be authentic.

 It is important to note that these guys are one of the most highly regarded firms out there and traditionally get very high marks for their strategy, process and commitment.   They are often times referred to as the most entrepreneur friendly firms out there - which is a major statement.

While the firm as a whole is stellar, the individuals you want to seek out are Tony Conrad and Jon Callaghan.

Contact:
530 Lytton Avenue, Suite 303
Palo Alto, CA 94301
Telephone:  (650) 330-7330