M%c3%a5rten janson

Gaming & Financing

Mårten Janson, Fondia Oy, 6.11.2013 Turku Sience Park

Agenda

Wake up!

Who you gonna call?

Gaming Issues

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Wake up!

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Interesting? Yes!

•Fastest growing sector of the global entertainment, value 65 billion $ (2011)

•Fastest growing sector of the Finnishcreative economy

•Finnish turnover 800 m, 200 companies

•Remedy, Sulake, Rovio, Supercell…

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What happened?

•Mobility changed the (console) game

•#1 free app > 100.000 dls/day in US

•Appr 1.000 iOS apps launched every day

•Digital distribution & analytics

•What’s the cost of an app?

•New normal eligible for seed and venture

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Probably a Loss

•Extremely fierce competition

•Average income / app about 8kEUR

•Most games fail and do not make money

•Educate and sell your case

•Understand and invest in understanding

•Skills, expertise, patience and luck

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Who you gonna call?

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What do you need?

•I need money, well…

•How much? Calculations!

•Why? Purpose and calculations!

•Grants, debt, FFF, angels, VC, CapM…

•Different players have different products

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Some sources

•Incubators/Gamefounders

•TEKES

•Angels (FIBAN, Industry angels)

•Finnish seed and venture funds (VIGO)

•Crowdfinancing (Invesdor, Vauraus, Indiegogo, Kickstarter…

•Varma, Ilmarinen, Tapiola, Fennia, Etera…9

A gaming source

•Publishers!

•Upfront payments and revshare

•CBC decided, choose strategy

•Watch out for broad exclusivity, channels, sequels etc.

•How is the revshare calculated?

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Benefits of equity

•Strengthens equity and solidity

•No direct cash flow requirements

•No security or collateral

•Cash, development, networks

•Align your interests

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Prepared?

•Business idea & plan, monetatization

•Team and key persons

•Advisors

•Timetable and cash

•Plan B?

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Really prepared?

Investment readiness =

Shareholder readiness +

Business readiness +

Corporate readiness

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Prepared for Gaming?

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Gaming issues (1)

•High project risk – strategy to market?

•Project phase determines risk

•Dev, launches, marketing & acquisition

•Gaming or game company

•Separate IP company

•Clear Exit strategy?

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Gaming issues (2)

•High level strategy and positioning

•Game vs. trademark (Angry Birds)

•Track record and team (back to the 90’s?)

•Budget all costs until break-even

•CPU vs. LTR

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Key Terms in Gaming

•Team – working obligation and vesting

•Risk – tricky valuation, use tranches and milestones (TEKES, risk positioning)

•IP – all rights vested in the Company

•Exit – investor driven

•Business Plan – strategically important

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Baldly go…

1. Understand and embrace risk

2. Your strategy defines everything

3. Utilize experience, know-how, partners

4. Call TEKES, call FIBAN, use networks…

5. Call Fondia

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Fondia ?

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Fondia as Partner

•Fastest growing service provider

•Genuine insight in gaming industry and transaction services

•Offices in Finland, Sweden and Estonia

•FIBAN partner

•FVCA member

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Fondia’s Services

•www.virtuaalilakimies.fi (tool)

•Sähköinen sopimusarkisto (readiness)

•Lakiosastopalvelu (readiness)

•Sähköinen datahuonepalvelu (project tool)

•Sähköinen hallitustyöskentelytila (tool)

•Rahoitusjuristit ja kontaktiverkosto (project)

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Gaming Specifics

•www.fondia.fi/gaming

•Pelifirman lakituki EUR 150/kk

•28 Nov in Helsinki: User acquisition

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Thank you!

Mårten Janson

marten.janson@fondia.fi

+358-20-7205 404

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