When the live game-show HQ debuted in 2017 it was an instant hit with millions of users signing on concurrently to take a chance at winning in trivia. Although the company did not ultimately survive, the success of a new form of interactive entertainment did not go unnoticed. This NYC startup takes it a step further by focusing on the intersection of gaming, streaming, game shows, and broadcasting. Genvid is a technology infrastructure provider and now publisher focused on what the company calls massive interactive live events (MILEs). The company initially focused on building infrastructure tools for interactive streaming but saw there was a significant opportunity on the publishing side. For its first experience, it partnered up with Pipeworks Studios for Rival Peak, a 24/7 interactive reality show with AI characters participating in an elimination-style competition that was broadcasted on Facebook. Following the popularity of this new format, the company is now planning on building more MILEs both internally and with licensed IP owners as partners. Genvid will also continue to provide the infrastructure tools through its SDK for others to build their own MILEs.
AlleyWatch caught up with Cofounder and CEO Jacob Navok to learn more about the inspiration for the business, how the company has created a new category of entertainment, strategic plans, latest round of funding, and much, much more.
Who were your investors and how much did you raise?
Series C funding of $113 million for a total raised since founding of $166 million from existing investors Valor Equity Partners, Atreides Management, Galaxy Interactive, Horizons Ventures, OCA Ventures, and Makers Fund, with Valor and Atreides co-leading the round. New investors Third Point LLC, Cobalt Capital, LightShed Ventures, XN, and Lux Capital also participated in the latest round.
Tell us about the product or service that Genvid Technologies offers.
With this latest round of funding, we’ve created Genvid Entertainment, which will specifically focus on producing and publishing massive interactive live events (MILEs) like the recent Facebook hit Rival Peak.
We also offer interactive streaming tools, technologies, and services for any developer or media company to build their own MILEs.
What inspired the start of Genvid Technologies?
Genvid was founded to enable a new format of entertainment by four game industry executives who worked together previously at Japanese gaming giant Square Enix. After spending nearly a decade working on game streaming, they were inspired by the growth of broadcasting (Twitch, YouTube, Facebook) and believed that there was an opportunity to create a new type of interactive media that leveraged the possibilities of millions of people engaging together in a stream.
How is Genvid Technologies different?
Genvid is pioneering massive interactive live events (MILEs), with a robust, mature SDK that’s freely available and enables the addition of interactivity to live-streamed content. The Genvid SDK is unique in a variety of ways, including its delivery of interactive streams across multiple platforms, game engines, and infrastructure.
With the establishment of Genvid Entertainment, Genvid is now a producer and publisher of interactive content as well and will be bringing to market truly revolutionary interactive experiences for the broadest possible consumer audiences later this year and beyond.
What market does Genvid Technologies target and how big is it?
MILEs are our target market. We believe it’s a new market, and that it can easily be as big, if not bigger, than the existing game industry market of $150B+.
What’s your business model?
Genvid Technologies is our tech and services division, developing and supporting the Genvid SDK that enables the integration of interactivity into any streamable content from video games to live sports. This business utilizes a royalty model, so anyone can download and use our SDK at no charge; a modest royalty is applied when such Genvid-enabled content is monetized by the developer.
Genvid Entertainment produces and publishes massive interactive live events for clients, with the Genvid SDK and related services at the heart of those experiences.
How has COVID-19 impacted your business?
Given the growth of streaming during the pandemic, it has increased demand for our software and services.
What was the funding process like?
Our latest round was led by existing Genvid investors and it was difficult for outside capital to come in since we did not go to market. This seems to be the new normal, which is why you see many large funds now getting in earlier rounds.
What are the biggest challenges that you faced while raising capital?
The uniqueness of our company position and the lead we’ve taken in building out the market meant that we had a lot of opportunities for capital.
What factors about your business led your investors to write the check?
We have a track record of success with many of the biggest tech companies, media companies and game publishers utilizing our software. Combined with the user engagement and data from recent projects, plus upcoming opportunities, we had a clear narrative of growth and future success.
What are the milestones you plan to achieve in the next six months?
The games business tends to move in years; we could work on a Final Fantasy project for a decade. We’re not focused on the next six months as much as the next three years and the number of MILEs we’ll launch, as well as new technologies on our roadmap.
The games business tends to move in years; we could work on a Final Fantasy project for a decade. We’re not focused on the next six months as much as the next three years and the number of MILEs we’ll launch, as well as new technologies on our roadmap.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Capital raises are global; several of our investors are in New York but others are on the west coast and in Asia.
Where do you see the company going now over the near term?
In the next twelve months, we plan to grow our workforce dramatically, particularly as we staff up Genvid Entertainment; we expect to go from our present headcount of ~80 to more than double that by summer 2022.
On the Genvid Technologies side, we plan to launch SAAS and API products next year that will significantly increase the ability for smaller developers and studios to build, launch, and run MILEs.
What’s your favorite outdoor dining restaurant in NYC?
Le Grande Boucherie next to our office, on 53rd street and 6th, has a great outdoor dining section that is fully sheltered from the elements.
