Do angels exist ?Email: petri.lehmuskoski@gorillaventures.fiTwitter: @petrileh
Background•   Started first company in 1983 at age of 18     – Build company to 120 M€ with over 180 man-years pa. employm...
Start-up financial market•   Finland has one of the largest no. Of start-ups per capita•   Capital available for start-ups...
Financing profileDemand                                               2nd VCfor ROI/ownership                             ...
What is angel activity ?• Business operation combined with ”pay forward” culture   – Wanting to help others to succeed and...
Finnish angels• There are about 400 ”angels” (not counting FFF’s)   – 3-10 professional angels• Several angel financing op...
Angel syndication• Large share of angel investments in US and Europe. Coming  into Finland• Choice for VC financing   – le...
How angels work• Typically a arch-angel (lead) leads investment• Angels are investing on people   – Not for people• Typica...
Before you get in touch with angel• Evaluate what kind of angel you need   – Competence, money, knowledge• Think and prepa...
Challenges angels face•   Too early and too little preparation•   Looking only for money•   Looking for ”employment”•   Co...
Avoid the following claims•   Our projections are concervative•   Research company estimates market growth/market•   Big c...
My views on gaming marketbeing 12 months outside it ?Email: petri.lehmuskoski@gorillaventures.fiTwitter: @petrileh
Recent developments•   Traditional gaming market still going strong     – Low/negative turnover growth          • Overall ...
At least three simultaniousdisruptions effecting gaming• Value chain changing   – From EVA*13 to EVA*2   – Knowledge how b...
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GameSpring slides from Petri Lehmuskoski

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Petri Lehmuskoski's presentation at the GameSpring event in Oulu, 22.3.2012

Published in: Business, Economy & Finance
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GameSpring slides from Petri Lehmuskoski

  1. 1. Do angels exist ?Email: petri.lehmuskoski@gorillaventures.fiTwitter: @petrileh
  2. 2. Background• Started first company in 1983 at age of 18 – Build company to 120 M€ with over 180 man-years pa. employment and operations in 7 countries – >30M games sold• Portfolio entrepreneur• Angel financer since 80’s – Initially project financing and more active since 2008 – Presently eight ”alive” investments – Best angel investment 100 % ROI during first year. Overall ROI – 60 %• Co-Founder at Gorilla Ventures accelerator/incubator• One of the Founding members of Fiban ry
  3. 3. Start-up financial market• Finland has one of the largest no. Of start-ups per capita• Capital available for start-ups 7th in World (2010)• So far ROI on angel and VC financing being close to 0 %• Traditional VC trying to improve their ROI – Increasing demand for angels – Opening possibilities for new generation of VC’s
  4. 4. Financing profileDemand 2nd VCfor ROI/ownership VC Angel + Veraventure Angel FFF Own Capital
  5. 5. What is angel activity ?• Business operation combined with ”pay forward” culture – Wanting to help others to succeed and avoid pitfalls• Angel wants to secure own business in long-term and with realistic ROI• Invests both capital and knowledge• Part of angels financing portfolio• Being an angle is not money loaning or charity, as the money is typically earned with hard work by the angel
  6. 6. Finnish angels• There are about 400 ”angels” (not counting FFF’s) – 3-10 professional angels• Several angel financing operations• Average investments per angel €15.000-100.000/company• More information www.fiban.org
  7. 7. Angel syndication• Large share of angel investments in US and Europe. Coming into Finland• Choice for VC financing – less demand on ROI – Less demand for ownership – Shorten engagement time – Able to finance through growth phase• Suitable for profitable growth companies
  8. 8. How angels work• Typically a arch-angel (lead) leads investment• Angels are investing on people – Not for people• Typically Investing in early seed stage companies with extremely high risk• Lean thinking expanding fast among angels evaluations process – Fail fast – fail cheap
  9. 9. Before you get in touch with angel• Evaluate what kind of angel you need – Competence, money, knowledge• Think and prepare your materials well – KISS• It is not about product pitch
  10. 10. Challenges angels face• Too early and too little preparation• Looking only for money• Looking for ”employment”• Company’s and entrepreneurs personal things mixed• How will the angel exit ? – Typical VC exit in 12 years – Typical angel exit in 5 years
  11. 11. Avoid the following claims• Our projections are concervative• Research company estimates market growth/market• Big customer is shortly buying our product• Key employees will join us shortly• No one is doing we are doing• No one can do what we are doing• We have multiple interested investors• Competition is too slow/dumb• We have proven management team• We need to get only 1 % of the huge market• We are driving millions of visitors to our site
  12. 12. My views on gaming marketbeing 12 months outside it ?Email: petri.lehmuskoski@gorillaventures.fiTwitter: @petrileh
  13. 13. Recent developments• Traditional gaming market still going strong – Low/negative turnover growth • Overall profitable – High turnover – High number of games – Entry barriers• New formats developing – mobile and social – Reasonable turnover growth • Low profitability – Low turnover – No entry barriers
  14. 14. At least three simultaniousdisruptions effecting gaming• Value chain changing – From EVA*13 to EVA*2 – Knowledge how business is being done missing • P*P*P*P=results• Earning logic changing – To freemium and add-financed etc.• Consumer behaviour changing
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