FUNMOBILITY

KD would like to elaborate a bit on FUNMOBILITY. www.funmobility.com . Simply, these guys rock. KD has known FUNMOBILITY, previously known as FUNMAIL (FM) for over 5 years.

In 2000, FM started early in the foray of the mobile entertainment market with a small MMS application that allowed users to send a SMS to a friend which would then dynamically insert a picture message based on the message. Due to the sheer size of the SMS market, it was a good idea but limited handset capabilities in high usage SMS areas impeded large uptake.

In 2001 for the entire year, the team struggled to pay the rent and their employees. No one in Silicon Valley could see the potential in what they were doing. They slowly changed their business model to wallpapers and ringtones, which was going to explode within a few years. Silicon Valley investors failed to see the success of these applications in Asia and Europe and missed a great opportunity. Sole angel investor and successful entrepreneur, Randy Rissman, took the plunge and funded the company, just enough to pay the bills.

The CEO, Adam Lavine, and his Co-Founder, Dennis Chen, did a great job rolling with the market and using existing technology to grasp new market demand. Adam was highly creative in developing unique IP wallpapers and ringtones so he didn't have high licensing fees. The unique IP has given them a strong following of recurring users and of course high MARGINS.

Furthermore, Adam realized there was huge value in developing relationships with the operators and helping them to make money from value added services. This has given him unique advantage in deck space and first dibs on new applications the operators want published.

In 2004, the market spiked in the US. This was 4 years after Japan, 3 years after UK, and 2 years after China. FM was in perfect position to benefit. The cash cow businesses funded new applications like America's Best Mobile Pix which has been a great success. In October, it achieved its 100 Millionth Vote and gets 20M page views monthly.

In 2006, KD was able to help Mitsui merge one its subsidiaries, ZAPPTRIO, one of the original ringtone businesses in the US to merge with FM. The merger has been a success and the combined entity flourishes.

The company will continue to make great products for its users. Those products must be help users socially connect to one another via the phone in a unique way. They have the vision, they have the success; and, it is only a matter of time before the big boys come knocking.

The market is over billions and the management team has the 5 tools. I will never understand why the Silicon Valley Boys never saw these guys. It shows me the opportunities are there even for the covert Japanese investors.