Funding: The Good the Bad and the UglyLessons Learned<br />Margaret Wallace, CEO, Playmatics<br />www.playmatics.com<br />
Margaret Wallace, CEO<br />@margaretwallace<br />http://www.playmatics.com/<br />
A NYC-based company that creates and develops highly engaging games and applications on the Internet, in social media netw...
Social<br />Hard-Core<br />Casual<br />Single-Player<br />
In Game Industry Since 1996<br />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-operat...
$<br />Copyright 2010. Margaret Wallace. Please Attribute Proper Credit if You Use These Slides<br />
Different Considerations<br />Lessons Learned<br />Sharpened Focus<br />Takeaway: Experience is the Best Education.<br />
Financing Options To Consider for Games, Tech and Media Start-Ups<br />Bootstrap<br />Friends & Family<br />Angel<br />Ven...
Strength of Idea<br />Market Size<br />Strength of Team<br />Competition<br />Takeaway: VCs are all about managing risk. T...
Break-Out Success<br />Break-Even<br />#FAIL<br />Takeaway: VCs & Companies Goals Are Not Always in Alignment.<br />
Sample Slide: Demonstrating Your Market Advantage<br />Tech & Cost Risk Removed<br />Cost Amortized Across Multiple Games<...
Comparable to Costs for One-Off Standalone  Web   Game That’s Less Engaging
  Up Front & Ongoing Cost Savings.</li></li></ul><li>Comparing / Contrasting: Boot-Strapped vs. VC-Funded Companies<br />T...
Comparing / Contrasting: Dealing With Market Size & Competition<br />Takeaway: VCs Will Want To See You’ve Thought Through...
Comparing / Contrasting: Structuring Your Team<br />Takeaway: Structure your staffing plan to reflect your investment appr...
Team Structure<br />Staffing = Magical Alchemy<br />
Comparing / Contrasting: Cash Flow and Spending<br />Takeaway: Raise Enough Investment to Give Yourself 18 to 24 Months of...
Comparing / Contrasting: Company Roadmap and Scaling<br />Takeaway: VCs Will Want to See You Profitable or Break-Even With...
Sample Slide: <br />Projections for VC Pitch<br />User Growth: Registrations & Total Games<br />
Lessons Learned<br />When to Raise?<br />
Lessons Learned<br />How Much to Raise?<br />
Lessons Learned<br />When Do you have the most negotiating power?<br />
Lessons Learned<br />Choose your Investor (or VC firm) carefully.<br />
Lessons Learned<br />Choose your individual VC carefully.<br />
Lessons Learned<br />VCs: Traditionally Not <br />Founder-Friendly<br />
Lessons Learned<br />Choose your attorney carefully.<br />
Lessons Learned<br />Guard Board Composition with your Life!<br />
Lessons Learned<br />What do you say when you are asked about valuation?<br />
Lessons Learned<br />Options and Option Pool<br />
Lessons Learned<br />Hidden “Gotchas”<br />
Lessons Learned<br />No Such Thing as NDAs<br />
Lessons Learned<br />Stand-Off Clause<br />
Lessons Learned<br />Summer – everything shuts down.<br />
The Unspoken Language of Pitching Game<br />Good, Bad or Indifferent?* <br />Instructions: I give you a few scenarios and ...
The Unspoken Language of Pitching Game<br />Scenario: <br />First-time pitching this VC firm. <br />You are incredibly det...
The Unspoken Language of Pitching Game<br />Scenario:<br />First meeting<br />All the Partners are in the Room<br />Meetin...
The Unspoken Language of Pitching Game<br />Scenario: <br />An Associate of the VC Firm Calls You because they are impress...
The Unspoken Language of Pitching Game<br />Scenario:<br />First meeting<br />All the Partners are in the Room<br />Meetin...
The Unspoken Language of Pitching Game<br />Scenario: <br />Second Follow-Up Meeting: <br />Person You’re Scheduled With C...
The Unspoken Language of Pitching Game<br />Scenario:<br />First meeting with a Partner<br />Talking About Industry Gossip...
The Unspoken Language of Pitching Game<br />Scenario: <br />Recently Made a Lot of Investments in Your Space<br />Good, Ba...
The Unspoken Language of Pitching Game<br />Scenario: <br />First meeting with Partners. <br />They offer you water and co...
“To the VC, 3x [exit] and a dead startup are essentially the same given the way they calculate their batting averages. At ...
Resources <br />TheFunded – www.thefunded.como<br />VentureBeat – www.venturebeat.com<br />Blog, Musings of a VC in NYC --...
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Funding Your Game Company: The Good, The Bad and The Ugly

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Game industry vet, Margaret Wallace, shares some pointers on getting your game company funded.

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  • Which of the scenarios were in fact good, bad, or indifferent?
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  • Now with Kickstrarter, it offers another way to get games out. Games that users want to play. I have sponsered many Kiackstarter games, including this new one below. Its a mix between BattleSport and SpeedBall. My old time favorites.
    http://www.kickstarter.com/projects/jvgames/hard-contact
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  • useful tips on VC selection and negotiation.
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  • ya, the game company is very good. A children's mined for intelligent on play a game's.
    so that one side do intelligence mined on the children. Or one side also bad game , because the children mine all time in game. not read and write. so that the game company good and bad and the ugly. Thanks.
    http://www.healthproductreviewers.com/muscle-morph-review.html
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  • Rebel Monkey, Founded in 2007
  • Rebel Monkey, Founded in 2007
  • Margaret Wallace – Full bio here: http://en.wikipedia.org/wiki/Margaret_Wallace
  • Raised Money
  • Transcript of "Funding Your Game Company: The Good, The Bad and The Ugly"

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

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