startupi

Migux is a Brazilian social network created for children in the style of a MMOSG (Massively Multi-user Online Social Game). The Migux, which are the playful avatars of the game, live in an aquatic world with different social and educational areas. The Migux move in a world created in Flash, where they can chat, collect objects, play games, maintain a personal page (in the form of a little house) and create and share content such as pictures. The functionality is that of a social network: communication, self-expression and entertainment.

One thing is certain: with little over a year on the market, and only recently out of beta, the World of Migux already has over 1.5 million registered users. The age range of the user base is six to fifteen years old, but Migux in truth has two audiences: the users and their parents. It’s no secret that Orkut, although it requires users to be 18 years old, is full of adolescents and young people. Children today, in this digital generation, are excited about social networking tools and are already using networks designed for adults.

Migux offers an alternative that is more engaging and creative for young people and offers a secure atmosphere that appeals to parents. The focus on security includes filtering of inappropriate words, live monitoring of chat, recording of all conversations and IPs, and preventing file uploading or sharing.

Migux follows the “freemium” business model. The user can participate in the World of Migux, create an avatar, choose a house, draw pictures, and chat with friends with a free registration. Paid subscribers get fun advantages like an elixir of invisibility and transportation via skateboard. Certain activities and virtual objects can be acquired only with Migux money: conches and water droplets. These can be purchased via SMS or PagSeguro, using a credit card. Subscribers can also win more money by playing certain games in Migux, such as creating drawings.

The team behind Migux, who also work on other projects for Brancaleone, is composed of four veterans of UOL.com.br (the largest portal in Brazil): João Ramirez, Anna Valenzuela, Antonio Graeff and Carlos Freitas. The team has a broad background of experience, from CMS and search to advertising and journalism. Migux was financed using the bootstrap model, with the partners using profits from Brancaleone, and the contributions of an angel investor.

With the arrival of Club Penguin in Brazil this year, Migux has some heavy competition. The national market also has some other players, such as Habbo Hotel. Club Penguin was acquired by Disney in 2007 for US$350 million, showing that although this is a niche market, social networks for children and adolescents are serious business. If Migux continues on it’s trajectory I wouldn’t be surprised if they attract the attention of a major player, too.

By: Michael Nicklas, investor in Startupi and other Brazilian startups.