We are One of the Fastest-Growing Vr Companies in the Market

Vasily Petrenko is a co-founder of Another World VR, a company that develops virtual reality games and opens VR arenas on a franchise basis. Since its launch in 2018, its arenas have appeared in 20 countries across the world. Approximately 80 locations are currently in operation, and nearly 20 more are completing preparations for launch. Each year, Another World VR releases all-new games. The company consists of around 20 employees, including managers, software engineers, and screenwriters-and Petrenko is one of them.

How did the idea of creating Another World VR come about?

"My friends and I began our first business back in 2014. Back then, I worked in the field of science and thought that I would like to manage what I do.

We have always been drawn to the entertainment industry. That's why we created an escape room production workshop-an entertainment business where players solve puzzles to try and get out of a locked room. The project turned out to be successful. Other companies began to order the script from us. After two months, we had turned from a local company into a business supplier of escape rooms. And over time, we began shipping to the United States, Europe, and Australia.

We constantly thought about how to develop our company. We were looking for some kind of new concept product. At that time, everyone was talking about virtual reality technologies. VR glasses began to appear in shopping centers and entertainment venues. With the help of VR, you could imagine that, for example, you are riding a roller coaster. But after some time of being engulfed in such entertainment, you begin to feel sick, because what you see is at odds with what you feel physically.

We wanted to incorporate VR headsets into our escape rooms but first needed to eliminate the negative side effects. By lucky chance, we met a team of programmers who were also interested in this idea and joined forces. As we worked together, we concluded that the solve was 'free roam VR,' the concept that describes when you are able to move freely with the headset on.

In 2018, we organized a mini-company. In three months, through the efforts of one programmer and several scriptwriters, we created a two-minute demo of the game. We journeyed to a conference in Nashville, Tennessee, and displayed the product. The people liked it so much that the first sale took place.

We put a lot of effort into recreating high accuracy of movements. When testing the demo myself for the first time, I was amazed when my step, in reality, coincided with my step in virtual reality. It was very cool. We knew then that we were moving in the right direction. We were actively developing our business of opening venues where people could come to experience VR. Our next step would be to continue its advancement."

Did the appearance of VR equipment in escape rooms entice more franchise investors?

"Yes. We worked out the possibility of using VR with our current partners, and with new ones, as well. There were people who tried our game and were impressed. Some found us at conferences, some through Google, and others saw our YouTube channel. On the channel, I broadcast and talk about marketing. It was great to hear from new partners that they learned a lot about the business through these videos."

You can find Another World VR on YouTube under the channel, Another World VR.

Are your arenas the same in every city?

"We understand that it is impossible to find exactly the same venues in different cities. Therefore, we have an individual approach to each partner, and consider this one of the reasons for the success of our franchise development.

We also have general recommendations for partners. For example, the "Gold Standard" is a room of 1,000-1,5000 square feet. It houses a gaming area, reception, and lounge zone. In the lounge zone, we recommend placing sofas and a TV so that customers can, say, play PlayStation while they wait."

How do you determine which types of games will be popular?

"We collect feedback from our partners on which games people interact with most often, and what customers like best. In addition, we focus on our feelings. All this time, the founders of the company have been involved in writing scripts and testing games.

We are constantly thinking about how to make the game better for both players and partners. In our first game, 4 people could play at the same time-they were all on the same team, and they were engaged in shooting zombies. When we were creating the second game, we decided that it would be more interesting for players to play against each other. This is because a competitive format is more interesting for players, and because the loser can always return to take revenge.

When we started using new equipment, it allowed us to increase the number of players from 4 to 10. This is actually a big step. When we worked with the American market, we noticed that many people like to spend time in large social groups. Even in the escape room, they often come with the whole family: mom, dad, children, and grandparents. Looking ahead, I can say that 14 people will be able to participate in one game at the same time."

How do you manage the VR equipment?

"While our partners invest in their own equipment, our managers help them find the necessary computers and headsets. We are also preparing a large technical manual for them on how to use the devices. We take in consideration the new products that appear on the market while writing games. For example, we have vibration vests, which vibrate when a player gets hit in the game.

Of course, as a 'software' company, we are tied to manufacturers and existing trends. Companies that produce hardware are primarily focused on the home use of their products, but we produce games that are impossible to play at home. Therefore, there are certain inconsistencies, of course. But we're adjusting."

Have your investments paid off since 2018?

"In 2018, my friends and I invested $200,000. We had few expenses because we only worked with a small number of programmers, and also did some of the work ourselves. In February of 2020, our revenues were equal to our expenses. But when the pandemic began, a ban on work in public places appeared. Thankfully, we were able to find internal funding and survived the first few months. Then the lockdown ended, and sales began. In 2021, we found an investor to accelerate the production of games.

Now we have a positive operating flow. We double our revenue every year. In 2020, the company's turnover amounted to $150,000. Last year, about $300,000. This year, Another World VR aims to approach $1 million."

What is your growth rate in comparison to similar VR companies?

"The companies that entered the market before us, against the backdrop of a surge of interest in the VR product, had millions of dollars in investments. They had more workflow. But if we compare not money, but the pace of opening new locations, we are now one of the fastest-growing VR companies in the market."

What are the smaller factors that helped Another World VR grow so quickly?

"I'll give an example. When we began developing the franchise, a potential partner was considering the possibility of investing a large amount into opening a location. He had the choice between two companies. At that time, our competitor had 3 written games-where we only had 2-as well as a larger staff than ours.

In the end, the investor chose us. When asked why, he answered, 'In the other company, there are investors who give money and managers who perform tasks. There were no people who would burn with the idea. In your company, you invest your own money and do a lot yourself, so you definitely won't abandon the project. I think that's a sign of success.'

We not only participate in the work of the team but also try to make the business of our partners more profitable. We constantly analyze what is developing and how-which games are becoming more popular, how to be on-trend, and how to set these trends.

We are trying to make VR accessible to both business people and gamers. Our model differs from competitors in that a location can be opened for only $50,000-100,000. This is 10-20 times less than some other companies require."

Where do you see Another World VR in five years?

"In terms of numbers, we plan that in the next 3-4 years, we will have grown our number of locations to 500. In terms of global goals, we want to create a network of VR cinemas accessible to visitors around the world.

I like to bring people into a good mood, and it always seemed important to create something useful. We even have a team with whom we are testing the possibility of using VR technologies to broadcast educational content. It would be great if children could not only play in our centers, but also watch educational films and attempt scientific experiments using VR devices."

In what other areas is VR promising to be implemented in the coming years?

"Now, there are some start-ups related to virtual reality in the field of medicine. You can also program various kinds of simulators for training in specialties that are difficult to imitate in real life-whether it's working out an emergency fire situation at a factory, or diving into a bathyscaphe and working out manipulations in the depths of the ocean. Of course, you should not imagine that virtual reality can solve absolutely any problems. But even in our project, we are amazed at how accurate and deep immersion into another environment can be."