In 1995, Jan Welter and a number of colleagues started a group aimed at developing a technical platform for a three dimensional virtual world on the Internet.

After three years work it could be seen that the project was feasible, and in 1999 the project was moved to a separate company, MindArk AB, and christened Project Entropia.

The company sought capital for the continued development of the product, and offered shares to both private and institutional investors. Among the larger institutional investors between 1999 and 2000 were Skandia Liv, Banco fonder and Value Venture Capital AG.

When, at the beginning of 2003, the product was deemed ready for commercial launch, one of the larger owners declined their commitment to continue financial support. The acute lack of capital that ensued forced the company’s board to declare the company bankrupt.

The company’s senior managers saw a clear future business potential in Project Entropia, and chose to buy back the operation from the official receiver in April 2003. The purchase included the completed product, all rights to the product and the technical equipment and software for its operation. The key personnel in the company also chose to work in the new operation which was organised into a new company, MindArk PE AB.

The new company continued to enhance and develop the product, adding new features regularly, reaching out to new markets and fine tuning the daily operation. The hard work paid off, seeing hundreds of thousands of new accounts being created and substantial increases in revenue. To herald a new era and the completion of the project phase, the product was retitled in April 2006 to Entropia Universe.