Tampere-based startup Virtual Dawn believes in its business model, even though it has often been misunderstood because of it," says the CEO. The company, which works with digitally extended realities, frequently finds itself explaining what "semi-open source" means. The core idea is to make others better, providing software developers with the tools – and taking a share of any potential breakthrough. Startup got ecognition for the business model from abroad. In late summer, the company released a long-developed community tool for creating virtual worlds.
– I dare say that we are a breath of fresh air from the past, says Antti Martikainen, CEO of the software company Virtual Dawn.
Based in the Platform 6 startup hub in Tampere, Virtual Dawn creates and implements applications rooted in the present while maintaining a community of developers. However, Martikainen longs for a time from a few decades ago.
– It would be great to bring back the demo scene of the '90s. It would be wonderful if people took risks and there were openly crazy producers who aren’t afraid to break boundaries. Our development platform at least enables production, if the courage is there, he says.
Firstly, the term "demo scene" is derived from the English words "demonstration" and "scene," referring to a subculture related to demos. Demos are visually impressive effect programs, also known as demonstration or showcase programs. The computer enthusiast event Assembly in Helsinki, familiar to many, has been a major player in the demo scene. Demos combine digital graphics, game coding, and music. Many top-tier software developers have a background in the tight-knit demo community and hobby.
Secondly, by development platform, Martikainen refers to the community maintained by Virtual Dawn, which became public in late summer. (Discord link) According to Virtual Dawn's website, the startup has been working with the Unity game engine since 2013 and began creating a VR software development package in 2017. Martikainen describes the development time as "unreasonably long."
– We have been in a soft launch state with a limited release until today, but now the public can join in. From the XR hack event in Stockholm at the beginning of September, we immediately had several dozen users, where I was a speaker, Martikainen rejoices.
Martikainen originally hails from Kiuruvesi. The farm boy has entrepreneurship in his blood. He is fascinated by the sense of community in the software industry in Tampere. Photo by: Petri Kangas.
The operation is comparable to a youth center
The Virtual Dawn community currently has 300 members, and there are about ten people working in-house. The company defines itself as maintaining and developing a development platform that operates within the Unity game engine, which updates and improves as it is used.
What is interesting about Virtual Dawn’s operation is their use of a semi-open source business model. In open source, the source code of the software is available to everyone, allowing users to modify, share, and further develop it. In closed source, the software is controlled solely by the developer, and it cannot be freely modified or distributed without permission. Virtual Dawn, therefore, monitors what users are doing with its development platform.
According to the CEO, their model is a "long game strategy," aimed at providing the best possible tools for developers. If a breakthrough occurs, Virtual Dawn will receive a share of any potential killer app. A killer app is an application that makes technology or a platform so attractive that it attracts a wide user base. Examples of such groundbreaking software that have revolutionized markets and consumer habits include Spotify and Netflix. Martikainen does not dismiss the comparison to a music production company, which earns royalties from sales and playtime after initially providing the artist with the means to create an album. The CEO adds that the results accumulate for the common good. If a user models a graphical element, others also gain access to it.
– I personally compare our operation to a youth center, which has many different great recreational tools. If someone manages to create something impressive, the youth center gets a share of that. At the same time, the equipment of the youth center improves. We do not directly monetize users because, from our perspective, it is not right, Martikainen says.
According to the company, the goal is to lower the barrier to trying out application development and leverage crowdsourcing in creating new things
Virtual Dawnin alkutaival on ollut toimitusjohtajan mukaan välillä raskas. Omalla maalla profetointi oli kivistä, mutta ymmärrystä löytyi ulkomailta. Kuvaaja: Petri Kangas
Recognition of the business model from abroad
According to Martikainen, collaboration partners range from grassroots levels to some of the world's largest companies, such as Microsoft and Amazon. The CEO notes that the most positive responses have come particularly from outside Finland.
– Pitching in Finland has not yielded results because our concept is difficult to understand, even though we have been on stage in many places. However, when we reached the London Stock Exchange, people there immediately grasped what we were about. We had a few serious discussions, says Martikainen.
Virtual Dawn's support comes from Tapio Foundry in London, which valued the company at 5 million euros and offered a roadmap-based investment worth 400,000 euros. The company’s revenue is reported by the CEO as 250,000 euros.
– We have maintained our way of operating and our vision, even though it has been very challenging to keep things running over the years. The world needs authenticity and the courage to be different and do things differently. Especially before artificial intelligence brought open source and crowdsourcing culture into the mainstream, our way of working was really hard to understand, Martikainen explains.
In Finland, there is also commercial collaboration, and the company's operations do not rely solely on its community. Virtual Dawn has released around twenty applications, which are used by professional educational institutions, including in teaching simulations.
– Our products are used in several universities and research projects, such as the NEXR project in Tampere.
At the London Stock Exchange, people immediately understood what it was all about.
Virtual Dawn is based at the Platform 6 startup accelerator in Tampere. Photo by: Petri Kangas.
Virtual realities and metaverses
According to Martikainen, they are generally a sought-after partner for discussions on virtual realities and metaverses. This summer, Martikainen spoke on the topic at the Suomi Arena in Pori.
– The topic of the metaverse quickly shifts from terminology debates, so I’ll add it to our company's hashtags if it brings followers, says Martikainen.
The startup's CEO hopes that startups and smaller players can join discussions and competitions alongside larger companies. According to him, they are often more significant players than their size suggests, just like Virtual Dawn.
The development process, which has gone through difficulties and misunderstandings, has helped identify pain points, and encouraging feedback from within the community supports their belief in their work.
– Many feel that they can be themselves here. We genuinely do things differently, and we receive feedback that it empowers people. Our way of operating democratizes creation; we are part of a new type of leadership – new kinds of companies, Martikainen says.
