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Funding: The Good the Bad and the UglyLessons Learned Margaret Wallace, CEO, Playmatics www.playmatics.com
Margaret Wallace, CEO @margaretwallace http://www.playmatics.com/
A NYC-based company that creates and develops highly engaging games and applications on the Internet, in social media networks, and on a variety of connected gaming platforms.
Social Hard-Core Casual Single-Player
In Game Industry Since 1996 Copyright 2010. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
In 2007, Rebel Monkey raised money in Silicon Valley to create a multiplayer casual mmo that focused on realtime co-operative gameplay.
$ Copyright 2010. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides
Different Considerations Lessons Learned Sharpened Focus Takeaway: Experience is the Best Education.
Financing Options To Consider for Games, Tech and Media Start-Ups Bootstrap Friends & Family Angel Venture Capital
Strength of Idea Market Size Strength of Team Competition Takeaway: VCs are all about managing risk. The more risk you remove, the more comfort they have with you.
Break-Out Success Break-Even #FAIL Takeaway: VCs & Companies Goals Are Not Always in Alignment.
Sample Slide: Demonstrating Your Market Advantage Tech & Cost Risk Removed Cost Amortized Across Multiple Games Cost For a Game on Monkey Wrench vs. One-Off Development Time For a Game on Monkey Wrench vs. One-Off Development ,[object Object]
Comparable to Costs for One-Off Standalone  Web   Game That’s Less Engaging
  Up Front & Ongoing Cost Savings.,[object Object]
Comparing / Contrasting: Dealing With Market Size & Competition Takeaway: VCs Will Want To See You’ve Thought Through Strengths, Weaknesses, Opportunities, Threats (SWOT).
Comparing / Contrasting: Structuring Your Team Takeaway: Structure your staffing plan to reflect your investment approach.
Team Structure Staffing = Magical Alchemy
Comparing / Contrasting: Cash Flow and Spending Takeaway: Raise Enough Investment to Give Yourself 18 to 24 Months of Runway.
Comparing / Contrasting: Company Roadmap and Scaling Takeaway: VCs Will Want to See You Profitable or Break-Even Within 18-24 Months.
Sample Slide:  Projections for VC Pitch User Growth: Registrations & Total Games
Lessons Learned When to Raise?
Lessons Learned How Much to Raise?
Lessons Learned When Do you have the most negotiating power?
Lessons Learned Choose your Investor (or VC firm) carefully.
Lessons Learned Choose your individual VC carefully.
Lessons Learned VCs: Traditionally Not  Founder-Friendly
Lessons Learned Choose your attorney carefully.
Lessons Learned Guard Board Composition with your Life!
Lessons Learned What do you say when you are asked about valuation?
Lessons Learned Options and Option Pool
Lessons Learned Hidden “Gotchas”
Lessons Learned No Such Thing as NDAs
Lessons Learned Stand-Off Clause
Lessons Learned Summer – everything shuts down.
The Unspoken Language of Pitching Game Good, Bad or Indifferent?*  Instructions: I give you a few scenarios and you tell me if that’s good, bad or indifferent. * Based on Personal Experiences.
The Unspoken Language of Pitching Game Scenario:  First-time pitching this VC firm.  You are incredibly detailed and on-point.  You Leave No Stone Unturned. Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario: First meeting All the Partners are in the Room Meeting Lasts 1 hour Everyone Checking Their Blackberries/iPhone Mid-way through – start joking about girls in bikinis.  Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario:  An Associate of the VC Firm Calls You because they are impressed with your business and want to learn more.  Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario: First meeting All the Partners are in the Room Meeting Lasts 2 hours Agree with Everything You Say Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario:  Second Follow-Up Meeting:  Person You’re Scheduled With Can’t Make it – Meeting with an Associate.  Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario: First meeting with a Partner Talking About Industry Gossip Meeting Lasts 1 hour. Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario:  Recently Made a Lot of Investments in Your Space Good, Bad, Indifferent?
The Unspoken Language of Pitching Game Scenario:  First meeting with Partners.  They offer you water and copious treats.  Good, Bad, Indifferent?
“To the VC, 3x [exit] and a dead startup are essentially the same given the way they calculate their batting averages. At this point you have a problem.” Hillel Cooperman, Jackson Fish Market, Web startup in Seattle.
Resources  TheFunded – www.thefunded.como VentureBeat – www.venturebeat.com Blog, Musings of a VC in NYC -- http://www.avc.com/

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Funding Your Game Company: The Good, The Bad and The Ugly

Notas do Editor

  1. Rebel Monkey, Founded in 2007
  2. Rebel Monkey, Founded in 2007
  3. Margaret Wallace – Full bio here: http://en.wikipedia.org/wiki/Margaret_Wallace
  4. Raised Money