How to get investors to throw money @you

@fogeldavid
9 Mistakes Gamers Should Avoid
when Raising Money
4 years

5 years

4 years

David Fogel
Page 3
Not Going to Talk about
Going to Talk about
GOOD
NEWS
Don‘t need
Lots of money to
Create Great
Games
BAD
NEWS
Don‘t need
Lots of money to
Create Great
Games
But What
Does it
Mean
Come
Prepared
3 Mindset Mistakes
You Should Avoid
What Will Make Investors Like You More?
A Clone of a really
Good Game
The Coolest
Game EVER!!!!
#1
Not
Knowing
Your
Audience
#1

Not Your Audience
#1
Your
Audience
#1

Interested
in 1 Thing
#1

Making Money
#1

1997-2012

$10Bn
#1

#1
#1

Founder
#1 Job
#1

Show
Them The
Money!!!
#2
Pitching
The Hit
Game
#2
#2

Cannot
Predict
Engagement
#2

Would You Invest?
#2
#2
#2
#2

51 titles before
#2
Investors Hate
Big Risks
#2

Now What?
#2
Platform
#2

Portfolio
#2

(Unique)
Technology
Who is
Your Investor?
#3
Choosing
The Wrong
Investor
#3

Investment > Marriage
#3
#3
#3
#3
Meet Investors Early
3 Mistakes
You Should
Avoid
When
Approaching
Investors
After 2 Meetings ….
#4
It‘s
Not A
Sprint
It‘s A
Marathon
#4

Average
6 Months
#4

There is Always
That 1 Guy….
#4
Long Journey
How Much
Money Do You
Need?
You‘re
Like
#5
Asking Too
Much
(Delivering
Too Little)
#5

The
smallest
Sum of
Money to
Execute
#5
Reach Your
Milestones
#5

12
Months?
Why Raise
Money?
To Develop
A Cool Game
#6 Giving Wrong Reasons to Raise
Money
#6

It‘s Not
About an
Adventure
With
Friends
#6

Hire
Great
People
#6

Grow Faster
#6

A Great
Reason
#6
All Together = Win
3 Mistakes You Should Avoid
When Pitching Your Game
The TEAM
Other
Guy

I‘m CEO
Bitch
#7
Pitching a
1 Man
Team
#7

Value in A Diverse Team
#7

Don’t Be THIS Guy
#7

It’s about
Sharing the Risk
#9 Advertisement is Your Business Model
Business
Model?
Bitch Please…

We'll Use
ADVERTISING
Say Advertising One More Time
MotherF&%$R!
#8
Advertising is
The Solution
To Everything
#8

You Keep Using That Word

I don’t think it means
what you think it means
#8

You Already
Have Users
#8 What?!
Only 10 DAU!?
It Can‘t Be
Your Game Is
Awesome
*

* Registered Users
#9
Presenting
Vanity
KPIs
#9
Registered
#9
Downloaded
#9

Take a Sit
#9

Engagement
#9

Viral
#9
Day 30

Retention
#9
Strong
Growing
ARPU
Don’t
Need
Investors
#2

So…
What were we talking about?
#1
Know Your
Audience

#2
Pitch PPT
#3
Choose Investors
that bring Value
#4
Raising Capital
takes time
#5
Ask for money to
Execute
#6
Raise for Good
Reasons
#7
It’s All About The
Team
#8
Advertising is not a
magic solution
#9
Avoid Vanity KPIs
David Fogel
fogeld3@gmail.com
@fogeldavid
Please Be
carful
Games can
corrupt
the minds of
Children

Angry Birds
The Truth Behind The
Legend
9 Mistakes Gamers Should Avoid When Raising Money
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.

Published in: Business, Economy & Finance
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  • 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 
  • 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

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