Today, children aged 8-14 act as if they were born holding a keyboard, and spend most of their spare time on the Internet. Yet many portals still do not cater to this group, and don't always enable them to use the Internet safely either. This is where media start-up Tweegee Holdings Ltd. comes in. The company was founded in 2006 by CEO Shay Bloch, and CTO Adi Brandwine, who previously launched the successful kids portal Tipo. They were later joined by Yohai Rayfeld and Nimrod Kimchi, the chairman and CEO of mobile application and content services company Unicell Advanced Cellular Solutions Ltd., who will help adapt the Israeli model for the overseas market.
"Our goal is to give kids a safe area that will enable them to use the Internet just like adults do," explains Bloch. The site has the characteristics of a social network, together with original online content created by the site's editors and users, and interactive tools designed to encourage users to join in the activity.
Thus, users can design their own virtual character (Avatar), build their own website and design it as they please, store personal media content (all of which is checked by the editors), create virtual communities, and play multiplayer games. "Our goal is to create a gateway to other sites. Accordingly, Tweegee has no qualms about also recommending new things happening on other sites.
Among the rival portals to Tweegee are the Disney-owned Club Penguin Entertainment, and Webkinz, although the founders insist that their portal offers a wide range of activities that increase the amount of time surfers spend on the net, offering them a richer user experience. In addition, the site allows user to communicate through its internal email system, which is powered by a sophisticated technology that they designed to prevent users writing words that are vulgar or offensive, or leave personal details. "In other sites, users are limited to just a few pre-selected sentences and this isn't all that suitable for children who want to articulate themselves," claims Bloch.
The site was launched in September in Russia and the US, with the number of visitors per month currently totaling 100,000 in Russia and 30,000 in the US. In Russia, the site is jointly operated by Tweegee and media corporation RBC, which will reportedly invest $6 million in the venture over the next three years. In the US, the site is wholly owned by the founders.
"Our system is ready for launch in many languages," says Rayfeld. "The US market is really important to us, but there are already enough players there, and our strategy is to enter developing countries such as India and Turkey, collaborate with local players, and share the profit with them. The rate of Internet penetration in these countries continues to grow and there's no real competition there."
To help it expand its global reach, Tweegee recently raised $3 million from a number of private investors and from Kardan NV (TASE: KRNV;AEX:KARD), and is now seeking a further $6 million.
Globes: What's the business model?
Bloch:"The business models varies from country to country. In Russia, for instance, it will be based on marketing content, with certain regions branded in a manner that will fit in with the activity. In the US, we are considering offering users an advertisement-free site for a monthly fee."
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2008
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