First Canadian-based iPhone Fund launched

October 2, 2009

Calgary’s Ph03nix New Media announced today the launch of the first Canadian-based iPhone Fund. According to Ph03nix President and CEO Jon Lam, the $2 Million iPhoenix Fund will be used to develop 133 Apple iPhone and iPod Touch games over the next 5 years.

While funds focused on smartphone applications are nothing new with the Kleiner Perkins’ iFund and the Blackberry Partners Fund raising a total of $250 Million, the iPhoenix Fund is both Canadian AND accessible to the average investor. According to Lam, “We really wanted to make this investment accessible to the average investor. The iPhone is game-changing not only for the mobile industry, but for handheld gaming as well, and the iPhoenix Fund is the only vehicle available for an investor like us to get in on the action.”

The iPhoenix Fund will be uniquely structured will a maximum of 400 Units costing CDN $5,000 each. Investors will get paid 50% of revenue and recoup 100% of the development costs first, starting with their first payment in six months. The Fund already has commitments over the minimum required and Lam anticipates that the Fund will close in November 2009.

Last month at GDC Austin, Lam ran through his slide deck for interested investors (click here and scroll down to watch) and a unique feature stood out – all investors get access the iPhoenix Fund’s very own app that reports real-time data on the Fund and how the portfolio of apps are tracking.

To jump-start the fund, Lam also announced that Ph03nix New Media has acquired Blue Unit Studios – a Calgary iPhone Game Studio created by Craig Rushforth and Dan Kratt. Rushforth and Kratt are the brains behind the popular iPhone game Sally’s Spa which knocked off EA’s Sims 3 last summer to become the #1 in the App Store. Quite the accomplishment considering The Sims is the best selling PC game franchise in history.

Thanks to actress Megan Fox’s endorsement earlier this week on Late Night with Jimmy Fallon, it looks like Sally’s Spa will be headed up the App Store charts once again with iPhoenix Fund investors in hot pursuit.