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9 Mistakes Gamers Should Avoid When Raising Money

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9 Mistakes Gamers Should Avoid When Raising Money

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9 typical mistakes Gamers (and other founders) do when raising money from VCs and Angel and ow best to avoid them.

This is my talk at GAMEIS Conference in Israel,

We went over
1. Mistakes you should avoid when preparing to start raising money (Setting the right mindset)
2. Mistakes you should avoid when approaching investors.
3. Mistakes you should avoid while pitching.

9 typical mistakes Gamers (and other founders) do when raising money from VCs and Angel and ow best to avoid them.

This is my talk at GAMEIS Conference in Israel,

We went over
1. Mistakes you should avoid when preparing to start raising money (Setting the right mindset)
2. Mistakes you should avoid when approaching investors.
3. Mistakes you should avoid while pitching.

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9 Mistakes Gamers Should Avoid When Raising Money

  1. 1. How to get investors to throw money @you @fogeldavid
  2. 2. 9 Mistakes Gamers Should Avoid when Raising Money
  3. 3. 4 years 5 years 4 years David Fogel Page 3
  4. 4. Not Going to Talk about
  5. 5. Going to Talk about
  6. 6. GOOD NEWS
  7. 7. Don‘t need Lots of money to Create Great Games
  8. 8. BAD NEWS
  9. 9. Don‘t need Lots of money to Create Great Games
  10. 10. But What Does it Mean
  11. 11. Come Prepared
  12. 12. 3 Mindset Mistakes You Should Avoid
  13. 13. What Will Make Investors Like You More?
  14. 14. A Clone of a really Good Game
  15. 15. The Coolest Game EVER!!!!
  16. 16. #1 Not Knowing Your Audience
  17. 17. #1 Not Your Audience
  18. 18. #1 Your Audience
  19. 19. #1 Interested in 1 Thing
  20. 20. #1 Making Money
  21. 21. #1 1997-2012 $10Bn
  22. 22. #1 #1
  23. 23. #1 Founder #1 Job
  24. 24. #1 Show Them The Money!!!
  25. 25. #2 Pitching The Hit Game
  26. 26. #2
  27. 27. #2 Cannot Predict Engagement
  28. 28. #2 Would You Invest?
  29. 29. #2
  30. 30. #2
  31. 31. #2
  32. 32. #2 51 titles before
  33. 33. #2 Investors Hate Big Risks
  34. 34. #2 Now What?
  35. 35. #2 Platform
  36. 36. #2 Portfolio
  37. 37. #2 (Unique) Technology
  38. 38. Who is Your Investor?
  39. 39. #3 Choosing The Wrong Investor
  40. 40. #3 Investment > Marriage
  41. 41. #3
  42. 42. #3
  43. 43. #3
  44. 44. #3 Meet Investors Early
  45. 45. 3 Mistakes You Should Avoid When Approaching Investors
  46. 46. After 2 Meetings ….
  47. 47. #4 It‘s Not A Sprint It‘s A Marathon
  48. 48. #4 Average 6 Months
  49. 49. #4 There is Always That 1 Guy….
  50. 50. #4 Long Journey
  51. 51. How Much Money Do You Need?
  52. 52. You‘re Like
  53. 53. #5 Asking Too Much (Delivering Too Little)
  54. 54. #5 The smallest Sum of Money to Execute
  55. 55. #5 Reach Your Milestones
  56. 56. #5 12 Months?
  57. 57. Why Raise Money?
  58. 58. To Develop A Cool Game
  59. 59. #6 Giving Wrong Reasons to Raise Money
  60. 60. #6 It‘s Not About an Adventure With Friends
  61. 61. #6 Hire Great People
  62. 62. #6 Grow Faster
  63. 63. #6 A Great Reason
  64. 64. #6 All Together = Win
  65. 65. 3 Mistakes You Should Avoid When Pitching Your Game
  66. 66. The TEAM
  67. 67. Other Guy I‘m CEO Bitch
  68. 68. #7 Pitching a 1 Man Team
  69. 69. #7 Value in A Diverse Team
  70. 70. #7 Don’t Be THIS Guy
  71. 71. #7 It’s about Sharing the Risk
  72. 72. #9 Advertisement is Your Business Model Business Model?
  73. 73. Bitch Please… We'll Use ADVERTISING
  74. 74. Say Advertising One More Time MotherF&%$R!
  75. 75. #8 Advertising is The Solution To Everything
  76. 76. #8 You Keep Using That Word I don’t think it means what you think it means
  77. 77. #8 You Already Have Users
  78. 78. #8 What?! Only 10 DAU!? It Can‘t Be
  79. 79. Your Game Is Awesome
  80. 80. * * Registered Users
  81. 81. #9 Presenting Vanity KPIs
  82. 82. #9 Registered
  83. 83. #9 Downloaded
  84. 84. #9 Take a Sit
  85. 85. #9 Engagement
  86. 86. #9 Viral
  87. 87. #9 Day 30 Retention
  88. 88. #9 Strong Growing ARPU
  89. 89. Don’t Need Investors
  90. 90. #2 So… What were we talking about?
  91. 91. #1 Know Your Audience #2 Pitch PPT #3 Choose Investors that bring Value
  92. 92. #4 Raising Capital takes time #5 Ask for money to Execute #6 Raise for Good Reasons
  93. 93. #7 It’s All About The Team #8 Advertising is not a magic solution #9 Avoid Vanity KPIs
  94. 94. David Fogel fogeld3@gmail.com @fogeldavid
  95. 95. Please Be carful Games can corrupt the minds of Children Angry Birds The Truth Behind The Legend

Editor's Notes

  • How to get investors to throw money @you
  • Or.. 9 Mistakes Gamers Should Avoid when Raising Money
  • About me
  • Not Going to talk about bootstrapping and crowd founding
  • Going to talk about – approaching angel Investors
  • And VCs
  • Good News
  • You Don‘t need a lot of money to Create Great Games
  • Bad News
  • You Don‘t need a lot of money to Create Great Games
  • But what does it mean for you
  • You need to come prepared
  • 3 Mindset Mistakes You Should Avoid
  • What Will Make Investors Like You More?
  • A Clone of a really Good Game
  • Or the coolest game EVER
  • ?
  • Mistake #1 not knowing your audience
  • Not Your Audience
  • Your Audience are the suit and tie guys
  • and they are interested in 1 thing
  • Making Money
  • between 1997-2012 VC invested ~$10bn in Games
  • it made them $44bn
  • Your #1 jobis
  • To show them the money
  • Mistake #2 Pitching The Hit Game
  • It‘s not about saying we will be the next Angry Birds
  • Since you cannot predict the engagement of the users with the game
  • Wouldyouinvest in a movie
  • That featured Angelina Jolie, Colin Farrell and Directed by Oliver Stone?
  • Alexander, Investment around $155m
  • Lost to investors around $76m
  • Rovio had 51 tittles before Angry birds. Putting all your eggs in 1 basket (game) is a big risk
  • Investors Hate Big Risks
  • So nowwhat?
  • Platform – the game is a way to develop your platform
  • Portfolio – You know how to develop good IPs
  • Technology – you bring something unseen to the table and your using the game to do it
  • How do you choose your investor?
  • The one that gives me money! Mistake #3 Choosing the wrong investors
  • Splitting from an investor is more difficult then getting a divorce
  • You need to choose investors that bring you value
  • Value does not equal money
  • Value equals Experience and a network in your industry
  • So meet investors early and talk to them and to their portfolio companies
  • 3 Mistakes You Should Avoid When Approaching Investors
  • Entrepreneurs think that after meeting 2 investors they will get money
  • Mistake #4 It‘s not a sprint it‘s a marathon
  • The Average capital raise takes 6 months (no matter if you raise $250k or $2m)
  • But there is always that 1 guy we hear about ….
  • So plan for a long journey – team, product/game and money
  • Howmuchmoney will youneed?
  • You‘re Like – I GOT the EXIT!!!!
  • Mistake #5 Asking for too much money ( and delivering too little)
  • What they are really asking is – “What is The smallest Sum of Money to Execute the plan you just showed me”
  • “What is The smallest sum of money to reach your Milestones”
  • An educated guess – the money you need to execute the next 12 months
  • Why do you want to raise money
  • To Develop A Cool Game
  • Mistake #6 Giving Wrong Reasons to Raise Money
  • It‘s Not About an Adventure With Friends
  • A good reason is to hire great people and become profitable
  • A good reason is to grow my company faster
  • The best reason I‘ve heard of is…
  • it‘s all together – and you need to find the best reasons for you
  • 3 Mistakes You Should AvoidWhen Pitching Your Game
  • So whois on theteam
  • I came up with the idea and they are just developing it
  • Mistake #7 pitching a 1 man team
  • Value in A Diverse Team
  • Don’t Be THIS Guy
  • The team is about sharing the execution risk by bringing experienced people
  • Business Model?
  • Bitch Please… We'll Use ADVERTISING
  • Say Advertising One More Time - MotherF&%$R!
  • Mistake #8 Thinking Advertising is The Solution To Everything
  • You Keep Using That Word - I don’t think it means what you think it means
  • Advertising works when you already have users
  • But what happens if you don‘t?
  • How do you show your game is awesome?
  • I have 5M (registered users)
  • Mistake #9 Presenting Vanity KPIs
  • The fact they registered to your game
  • Or downloaded it 10m times
  • Doesn‘t mean they will use it
  • Show Engagement (DAU/MAU)
  • Show your K factor
  • 2/7and 30 dayretention
  • And a strong growing ARPU or ARPDAU
  • and if you manage to show all of those you won't need them… 
  • Please Be carful Games can corrupt the minds of Children 

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