Kaneva CEO Christopher KlausLast week Georgia Governor Sonny Perdue signed legislation that will give entertainment industry production studios up to 30 percent tax breaks for business conducted in the state of Georgia. Georgia is the first state to pass this type of incentive for the gaming industry.This new law (the 2008 Entertainment Industry Investment Act) is a big win for those wishing to make Georgia a video gaming and entertainment capital. It is also a personal victory for Christopher W. Klaus, founder and Chief Executive Officer of Kaneva, an online social entertainment world. A strong advocate of video gaming, he was instrumental in helping make this law a reality.Klaus is one Atlanta's best-known success stories. His company Internet Security Systems was sold to IBM in 2006 for more than a billion dollars. He is also part of a contingent of Atlanta-based CEOs who are embracing social media as a promising business model.Kaneva is Latin for "canvas." Like the better-known Second Life, Kaneva combines elements of social networks and virtual worlds.And like Second Life, Kaneva members create digital versions of themselves -- avatars -- and then meet up in a modern day 3D world. Every Kaneva member gets a Kaneva City Loft -- their own 3D space - where they can decorate and furnish in their unique style. They can bring their favorite videos, photos, music, and games, and watch them on their 3D televisions. Friends interact in a loft or public and can chat in real-time.But while Second Life shies away from the word "game," Kaneva does not. Kaneva is very much about entertainment and is steeped in a gaming culture. In fact its co-founder Greg Frame is also its Chief Gaming Officer.To be sure, virtual worlds are still in their infancy. Awareness is very limited, and adoption is not widespread.But Klaus sees opportunity. Online gaming is a multi-billion dollar industry. The research firm Gartner predicted last year that 80 percent of active Internet users will engage in a virtual world by 2011. That translates to approximately 250 million people.Second Life has enjoyed the lion's share of media attention, but pardon the pun, it is not the only game in town. Kaneva also hopes to be a driving force in this space.Kaneva Is Self-FundedSo how did get Klaus attract investment dollars for this venture? He didn't. Kaneva is self-funded. Now very few investors have those kinds of resources at their disposal. Even fewer would invest their own money.But Klaus has a vision of "embracing the new era of content creation and harnessing the power of the Internet - to democratize entertainment and provide opportunities for everyone from artists to consumers to share and interact with entertainment online in an entirely new way."Even at ISS, he never abandoned his interest in video games that begangrowing up in Sarasota, Florida.While ISS was formed to protect consumers from the Internet, Kaneva is intended to make the Internet fun and interactive.At an MIT Enterprise Forum on virtual worlds in Atlanta earlier this year, Claus likened Kaneva to social networking sites like Facebook and MySpace. These networks are about communicating and connecting."I think virtual worlds have historically served the purpose of fantasy games. What we are seeing now is a new form of communication that is more emotional than anything we have seen on the Internet."Klaus makes a distinction between what he calls Video Game 1.0 and Video Game 2.0. The 1.0 world is a top down publisher model. It is not social. The 2.0 world is. Klaus sees Wikipedia and YouTube as models - ones that are more collaborative and emergent, where individuals have the power to create and post content.Klaus recognizes that social media is not a core business for most companies, and blogs let alone virtual worlds are still outside the realm of possibility for most companies. But he strongly believes in its power to transform online interaction and change the way business is done.Doing Business in AtlantaAs for doing business in Atlanta, Klaus is a staunch supporter of GA Tech. He feels that VentureLabs and the Advanced Technology Development Center are breeding grounds for growth. He also believes that the new legislation will attract investment and talent. He sees students at both GA Tech and Savannah College Art and Design as "hidden gems" to attract top notch engineering and design talent. They provide a valuable resource pool for a fledging industry to grow.Especially in Atlanta, nothing breeds success like success. With ISS, Klaus was able to generate awareness and talent in the Internet security space. He is hopeful that with Kaneva, he will do the same for social media and virtual worlds.Let me get back to you.Technorati Tags: Christopher Klaus;Kaneva;Atlanta Social Media;Second Life;Video Game 1.0;Video Game 2.0;Virtual Worlds;2008 Entertainment Industry Investment Act;ISS;New South Media Buzz;Bernaise Source Buzz;Save to del.icio.us
Link to original post