Smule is one of our favorite iPhone developers – besides putting together ridiculously addictive apps like Ocarina (iTunes Link), the team is also especially adept at tapping into the iPhone’s network effect, even on something as basic as a virtual lighter. Today, the company has announced that it has closed a $3.9 million funding round led by Granite Ventures, with Bessemer Venture Partners, Maples Investments, and Jeffrey C. Smith (the company’s co-founder and CEO) also participating.
The company combines the talents of Smith, an experienced entrepreneur, with Dr. Ge Wang, an Assistant Professor at Stanford’s Computer Research in Music and Acoustics (who is the company’s other co-founder). Wang is partially responsible for the development of ChucK, an “on-the-fly audio programming language” that allows Smule’s apps to create and transmit realistic music over the iPhone’s network connection. Wang also conducts the Stanford Laptop Orchestra (video here), and the Smule Ocarina orchestra, which played at this year’s Crunchie awards (video here).
Some of Smule’s other applications include Zephyr, a interesting app that combines audio and visual effects to respond to your touch, and Sonic Vox, a voice shifter. Overall Smule’s apps have gained over 1 million users.
I have that ocarine app, pretty funny and innovative. It’s like a flute. Sweet.
This is one business which I think will be able to survive the downturn if they can continue to churn out hits.
Congratulations on the funding!
Anjali Sen
I agree…Smule should do pretty good in this economic downturn. As the economy worsens, and more and more people lose their jobs, fun apps like what Smule is developing will become even more popular. People tend to turn toward games, movies, the internet, and other entertainment sources as an escape during times of crisis.
Congrats Smule!
It was smart of them to raise money now as well, as the tap is quickly getting shut off.
With cash in the bank, they should be very well positioned for the future.
Anjali Sen
Yes they r
I wish someone would explain what the $3.9 million is going to be spent on? Every day we read about some developer in a basement making a great iPhone app and earning millions. Smule obviously didn’t need the money to build Ocarina and their other apps. So why do they need $3.9 million?
Marketing? Hiring additional developers to churn out more apps faster? Fancy chairs? Anyone know?
Daniel, you’re right about that. It doesn’t make much sense, but they must have had a valid case to raise such money at a time like this.
I’d be very curious to find out what it is. Maybe they know something everyone else doesn’t.
i saw the comments on use of proceeds for the financing round and offer this response.
we want to expand our r & d capability. we have a great group and some core IP now. we believe that we can increase the depth of our future product offerings, however. our servers, for example, are processing millions of transactions these days to serve smule users, and we want to expand what we are doing in the cloud. these types of up-front investments require capital.
we also want to increase our outbound marketing capabilities, and so we are hiring some folks and expanding the programs to continue to build the smule brand, creating awareness for our products. building a brand will take talent, capital, and time.
hope this helps.
jeff
Jeff –
Thanks for the reply! It will be interesting to see if well executed brands and premium-featured applications (i.e. ones that need lots of r&d and cloud infrastructure) will be able to stand out from the crowd and command a higher price point and usage level as the iTunes marketplace get’s increasingly flooded with me-to, developed-in-a-day $0.99 apps.
But the real question is….are you going to hire any more Smule Mules? You know that he’s the secret to your success!
http://themulew...e.blogspot.com/
you are a very creative dude,i am 46 years old dad who’s daughter is a flute player ,you’ve allowed us to cross paths my OC her flute. I love it also do missionary work so far a hit in many places i.m a fan and good luck with the money.If you need more drop a line
OC on
Looks like iPhone developers and companies are maturing
Apple really need such success stories to encourage developers to switch to Apple platform. Neither Symbian nor Android doesn’t have the same possibilities for developers.
Congrats! Jeff, you are a truly a world class entrepreneur capable of fully exploiting great opportunities and monetizing them. Congrats, this will be yet another huge winner for you.
Ludilo
had the ipone for about a month and from a business perspective there is very little if anything else i need. some people dont play games. they conduct business. look at the top 25 ipone apps and most are a bunch of games. how many games does a ipone user need on there phone? the killer ipone apps is already in place and its called the safari.
PlaynoGames.com – serious business
Ocarina is such a fun and must-have app. It’s one of the iPhone apps that you show to your friends, making it highly viral. Congrats on the funding and as an aside, I love Smule’s logo!
iPhone apps are going to be THE hot thing for next few years, no doubt. Maybe I should look into the iPhone.
This company has a great group of team members all very creative audio technologist.
it is amazing to see things like formant corrected pitch shifting and the like coming back into play and gives front row seats to otherwise unknown audio signal processing methods.
good on them!
The Smule team is very cool. If you want to hear Dr. Wang talk more about what they’re doing, I’d encourage you to come to the upcoming iGames Summit – he’ll be giving a talk on sonic media and all of the cool things they’re doing on the iPhone platform:
http://www.igsummit.com
iphone apps is big business
Oh yeah, Everyone I show these apps too love them and thinks it’s like nothing they’ve ever seen before! They are great!
Here is my blog:
http://illumina...th.blogspot.com
Thanks to Smule the small Real Ocarina community is starting to flurish more and the diffrent styles of Ocarina from all over the world are starting to grow fast!!! Thanks Smule! I hope it continues to promote in this way.
ocarinas.kicks-ass.org
and
http://www.theo...rinanetwork.com
for all your non-software Ocarina info.
Dave
They may have raised $3.9 million, but they also just spammed me with a link to this post. Not cool, Smule. I didn’t ask to receive updates on your commercial situation.
A little update email doesn’t hurt. I for one am looking forward to their progress.
I disagree — it does hurt, as a matter of principle (”oh, one little email advertising my natural herbal supplement alternative to V1@GR@ won’t hurt anyone”). If they want to keep users apprised of their progress, they should ask for opt-in consent. To do otherwise is to send unsolicited commercial email. Downloading an app on iTunes is NOT a registration of interest in the company.
I’m impressed that anyone can get funding in this economic climate, but if true, this is a strong sign that there are significant factors Smule doesn’t “get.”
Guilty as charged. Apologies and I agree, the opt in model is appropriate here. One note: we were not attempting to sell anything, but only trying to tell our users thanks for their support and for all of the amazing things they gave created for others. I believe this is the only email we have sent our users to date, btw.
Jeff
who in their right mind would invest so much money on a business model that doesn’t make any money?
Do you have any idea how many copies of Ocarina they’ve sold? Or the raving fans they’ve created for their software and company?
Look into this a bit more before you question this investment. It’s going to pay off big time…
Congrats to Jeff and the Smule team!
Congrats… love the Ocarina ,great app and I like to listen to the many talented players around the world
I love Ocarina… it’s a great app! Congrats, Smule team!
Congrats on the investment! For a smaller players who don’t have a $3.9MLN in the bank yet I would suggest to look at outsourcing. You probably noticed a lack of professional iPhone developers on the market and those who done TOP apps are charging $150-250/h. Offshore outsourcing can be of a great help here. Just make sure that the company is experienced and developed apps which are successful and popular in the AppStore
Outsource if you want shit developers
good news! I think the lighter and the ocarina have helped selling more than 1 iphone.
Awesome! Glad Smule is going to grow. Ocarina is amazing – lets see a blackberry turn into a musical instrument…lol.
(BTW – getting a ‘Thank you for your support’ email was nice to see
)
it is wonderful to see that really innovative and quality apps can be (a) created on iPhone (b) discovered by users and (c) monetized. There may be 15,000 apps on iTunes but it examples like these that matter.
BTW guys, the Apple app store is not unique, you can develop XBox games and sell them in the Microsoft store for the same profit as you get from Apple. So no, the iPhone is not unique in this respect. In addtion, rumer is there will soon be an app store for Android, when that happens apple is doomed.
PS: I really dont think ocarina is all that great, there are MUCH better apps out there.
$3.9 million is a good hunk of change for an iPhone app developer.
I love the iPhone Ocarina app too, but haven’t been using it as much lately. I wanted to make a video for their contest, but never got around to doing that. I’ll still upload some videos thought.
There are so many cool instruments on the iPhone, that I’m currently working on making a song completely out of iPhone instruments.
Speaking of all the iPhone developer chatter, I think someone needs to set up an iPhone developer bulletin board so people can find developers. Anyone want to join in?
Oh, almost forgot.
It’s very dorky to be caught playing the Ocarina in public. I prefer to play it where I won’t be punched in the face by an Ocarina bully.
But it reminded me of the funny spoof, the Pomegranate Phone, where someone plays their phone/harmonica during a business meeting. It’s a must see: http://www.pome...anatephone.com/
Hi,
Sit back in your comfortable couch and surf the web, browse through the photo library and control your music system all with your iPhone. Want to know how? Simply go to the iTunes App Store and buy the Air Mouse Pro application with $5.99 and get it installed on to your iPhone. This amazing application turns your iPhone into a wireless in air remote control for your computer. Released in 4th Feb, 2009, the Air Mouse Pro iPhone application is so far one of the most useful Utility application available in the App Store
Regards
Margareth
$3.9 million funding is a pretty round figure, I think many of iphone developers were willing to take a part in it.