I have immense respect for Backflip Studios. They are one of the few iPhone development groups that has been able to leverage one of their early successes and build it into a strong and sustainable business.
The company was founded by Julian Farrior (pictured left), Dale Thoms (pictured right) and Tom Blind in April 2009. Their first game was Ragdoll Blaster and launched on May 15, 2009. Three weeks later, they launched Paper Toss for free. Paper Toss, of course, went on to be massively popular to the surprise of everyone including Backflip. But Backflip recognized the value of having such an incredibly successful free app and used it to both generate revenue for the company and also help launch its other games up from obscurity.