Founder – Rainer Selvet, ReadyPlayerMe

We’re kicking off a super cool series where we chat with the rockstars of the web3 world. First up, we’ve got Rainer sharing all the juicy details of his journey. Don’t want to miss the next one? Just hit subscribe on our newsletter and we’ll drop the next interviews right in your inbox. Stay tuned!

Let’s begin with a brief introduction. Can you share a bit about yourself and how the business started?

I’m Rainer, the CTO of ReadyPlayerMe. Our journey began in 2013 with four co-founders. Over the years, our focus has shifted mainly around our product’s evolution, but our core idea always revolved around virtual actors or virtual people. Our initial venture was into hardware. We created the first full-body scanner in the Nordics, a significant step in photogrammetry. This led us to develop the Luna Scanner, a three-meter tall structure designed to capture facial features and likenesses. When Facebook acquired Oculus in 2014, we foresaw the potential of VR and virtual worlds, especially in social experiences.

Interesting. How did you move on from there?

Recognizing the limitations of hardware, we transitioned into software. Our early scanner designs had limitations in scalability. For example, our three-meter tall scanner wasn’t a feasible solution for scanning millions of people. So, we leveraged the datasets from our initial projects and designed a mobile version, making facial scanning as easy as using your phone. Around 2015, this was a new territory, as facial scanning wasn’t a mainstream application.

Luna Scanner

What were the early applications of these scanned models?

In the beginning, we focused on 3D printed figurines from full-body scans. However, as we shifted to facial scanning, we licensed our technology to gaming companies, collaborating with giants like Wargaming and Tencent. We even ventured into virtual fittings with H&M. Each collaboration was custom-tailored, blending our technology with their systems. This model made us cash flow positive.

So this was the beginning of your foray into the gaming industry?

Precisely. The demand from gaming companies was substantial. As we built custom solutions for these enterprises, we saw a bigger potential. While our cash flow was positive, we realized the challenge of scaling through exclusive enterprise deals. We envisioned our avatar creation tech reaching indie games and beyond.

And that led to the birth of ReadyPlayerMe?

Exactly. Once we understood our market direction, we quickly developed the first iteration of ReadyPlayerMe as a web-based experience, emphasizing easy integration for game developers. The initial version was a character builder, allowing users to personalize their avatars, which many adopted for their social media profiles. Our goal was to create avatars that users could connect with and use across various platforms. Instead of licensing our technology, we offered it for free to everyone. As ReadyPlayerMe gained traction, especially in VR applications, we secured funding to further our mission.

Your growth seems swift and organic. Were there any challenges?

Our focus on easy integration significantly fueled our adoption. Pairing that with personalized avatars resonated well with our audience. But like any venture, we’ve faced our share of challenges and have always aimed to evolve and better our offerings. The rapid growth in Web3 projects and virtual worlds made personalization and customization more important. With the NFT boom, you could add utility by allowing access to selected collections. This played into web-based games and metaverse applications. The shift towards Web3 and personalization provided a significant tailwind for us. Many used our characters as profile pictures on social media.

RPM founders

I’ve heard from other founders that a16z really values viral marketing. Was this one reason they wanted to invest in your project? How was the process with them?

When a16z reached out, it felt like a natural fit. We wanted investors who understood the gaming space. Our main market is Web3, but we’re exploring the top games market. Their expertise in both gaming and crypto was invaluable. They’ve been very supportive throughout. We were fortunate to be on their radar.

So your early growth and organic traction played a role in attracting investors?

Definitely. Early product growth and the potential future trajectory were essential in our discussions.

As the CTO, you must have faced challenges. Can you speak about the tech side and its evolution?

The early version of our platform was built by in-house engineers. As we grew, we had to adapt to increasing complexities and ensure we had the right team to execute our vision. My role often shifted between product management and tech, depending on the need.

It sounds like the startup environment remains strong within your company.

Absolutely. We’re all committed, hands-on, and working towards building the best product.

You mentioned the team earlier. How many people are in your team now?

We have 70 people, with about half in product and engineering.

And did you hire the tech team?

We brought on a head of engineering at the beginning of this year. He’s been instrumental in scaling the engineering organization, from increasing the headcount to refining engineering processes. We’ve recently reorganized into domain-specific teams. As the team grows, regular reorganization ensures we focus on delivering specific customer value. Every stage requires attention to the team’s composition to ensure efficient delivery.

Your team has grown significantly, especially with senior hires from the business world. How do you feel about this, given that it’s your first project?

Scaling the team was challenging. You need to be okay with letting others take the reins. I remain emotionally attached, but I’ve learned to trust the right people to build upon our vision. My preference is for strategic thinking, so having teams that can operate autonomously frees my mind for that. But the journey had moments filled with just hiring calls. Every stage brings its own set of challenges.

Any advice for founders just starting with their first startup?

Focus on customer value, no matter how niche it might seem initially. Begin with a specific problem and solution, then expand from there. You don’t need a massive project right away. Begin small, prove the concept, and scale from there.

You’ve mentioned your love for books and podcasts. Any recommendations?

For startups, “High Growth Handbook” and “Lean Startup” are must-reads. “Working Backwards” offers insights into Amazon’s customer-centric approach. For podcasts, I listen to “Rework,” “Lenny’s Podcast,” and “Huberman Lab.”

All of us have some side project ideas from time to time. How do you handle these when managing a big project?

Over the years, I’ve built various side projects. Some are small applications to solve immediate problems, like a menu bar app for AirPods which made it to No. 1 on Product Hunt, and was nominated for Golden Kitty Award. I sometimes delve into 3D and AI, merging them for technical demos. I keep a list of ideas and pick from them as the urge arises.

Any final thoughts or advice?

As you scale, do so with clarity. Avoid scaling just for external appeal. Always hire when there’s genuine need, not just for the sake of expansion. It helps in staying lean and focused.