Bootstrapping 101: PerBlue @ GDC Europe

507 views

Published on

Justin Beck, CEO of mobile and social gaming company PerBlue, give his Bootstrapping 101 presentation at GDC Europe. For questions or feedback, email press@perblue.com

Published in: Economy & Finance, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
507
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Bootstrapping 101: PerBlue @ GDC Europe

  1. 1. Bootstrapping 101:How college kids built a thrivinggame company in under 3 yearsJustin BeckCo-Founder and CEOPerBlue, Inc @PerBlue @JustinKBeck
  2. 2. Virtual Goods Expenses Purchase Swag 37% Level Up 22% Refine Oil 15% Customize Weapons 16% Change Skill 10%
  3. 3. $100,000 $150,000 $200,000 $250,000 $50,000 $0 Jan-10 Feb-10Mar-10 Apr-10May-10 Jun-10 2010 Jul-10Aug-10 Sep-10 Oct-10Nov-10 Dec-10 Jan-11 Feb-11Mar-11 Apr-1120102011May-11 Jun-11 Our Revenue Jul-11Aug-11 Sep-11 Oct-11Nov-11 Dec-11 Jan-12 2012 Feb-12Mar-12
  4. 4. Our Users• 1.5 million user accounts• 15,000 DAU  40 – 50 Cents per user, per day• 50,000 MAU• 1,500 concurrent players• 70% male, 30% female• 65% USA, 35% rest of the world• 85% Android, 15% iOS
  5. 5. How did this start?
  6. 6. We got offered really early money.
  7. 7. Take The Money or Bootstrap?
  8. 8. Why did we turn it down?
  9. 9. Terms That Stink• Small investment• 1 board seat out of 3• 10% share of the company• Preferred Stock – protective provisions
  10. 10. We didn’t trust them.
  11. 11. We’re officially Bootstrapping.
  12. 12. My life @ Microsoft Sleep!
  13. 13. The real cost is not just time. Stress Focus
  14. 14. Microsoft offered me a great job.
  15. 15. Take M$ job or continue to bootstrap?
  16. 16. Why did I turn down the job offer?
  17. 17. Mobile Opportunity
  18. 18. Microsoft will always be around.
  19. 19. The real value isn’t the money. Education
  20. 20. Don’t let upfront cash buy you.
  21. 21. Let’s do the math 40 hr/ weekx 52 weeks___ 2080 hours 3 hr/ tripx 15 trips on the boat 45 hours Is $35k worth 45 hours of fun and 2080 hours of misery?
  22. 22. Assembling the team
  23. 23. Stock Options
  24. 24. How do stock options work?
  25. 25. Early Stage Employee Stock Options• Really low price per share• PT work .1% for a year• FT work .4%-.8% for a year
  26. 26. Key to compensation:Good outcomes for the company and employees.
  27. 27. Why did people choose this?
  28. 28. After 11 months of development…
  29. 29. We still werent shipped.
  30. 30. We have to ship.
  31. 31. Kingdoms Spells InvitesSend Messages Water CitiesCrafting Event feed Global chatMines Alliances QuestsCaves Geotargetted marketing Giant turtlesWarp travel Ranged weapons ScrollsArmories Magic GroveCrystal Web view RankingsOil Tutorial Kill MonstersWeather Customizable items HatsTowers Item naming ResearchLeveled Weapons Territory naming AcademiesRanged Weapons Sheep ArmoriesPets Avatar customization SocietiesMini games Dungeons OxenTrading Collect Gold Sign PostsMerchants Payment FlowersMingling Subscriptions StatusesFemale character Tradeposts LarvaFlags Claiming Land Plants
  32. 32. The easiest way to kill your company is by not keeping an eye on scope.
  33. 33. We launch!
  34. 34. Some Context
  35. 35. “Got a lot of potential.”
  36. 36. “I don’t have enough creatures in my circle.”
  37. 37. “I am sick of driving around.”
  38. 38. People don’t move.
  39. 39. “I hit my neighbor’s cat while driving because I was playing PK.”
  40. 40. How do we make a location-based game not so... location-based?
  41. 41. Sh*t.
  42. 42. There is more to location than just being there.
  43. 43. Bam
  44. 44. We adjusted our strategy.
  45. 45. We’re broke.
  46. 46. When you’re out of money, the ship stops.
  47. 47. Initial Revenue Model: Subscription Based
  48. 48. This was before Virtual Goods were pop culture.
  49. 49. But we were scared of a pay wall.
  50. 50. Virtual Goods Expenses Purchase Swag Level Up Refine Oil Customize Weapons Change Skill
  51. 51. Where players spend Food is important.
  52. 52. Tradeposts
  53. 53. We had the revenue model.
  54. 54. We needed money to launch.
  55. 55. How can we fund this?Angel or Friends and Start doingVC round Family round contract work
  56. 56. Friends and Family
  57. 57. Friends and Family: Important Things
  58. 58. Family and Friends Terms• $72,000• Common Stock• 3.5% of the company
  59. 59. The night before launch…
  60. 60. It Worked!
  61. 61. Raising Growth Capital
  62. 62. Raising Growth Capital• We were profitable• We employed 7 full time people• Increasing cash flow• Had a solid team
  63. 63. Many investors asked us to move to CA.
  64. 64. Perks of being in the Bay
  65. 65. Perks of not being in the BayMadison, WI
  66. 66. The Results• Oversubscribed• Looking for $300k, total of $800k raised• Good investors that are trustworthy• 40% West Coast, 60% Midwest
  67. 67. Scaling Revenue
  68. 68. Niche products have more legs than you think.
  69. 69. Stay Laser Focused
  70. 70. Starting multiple new productswith small teams didn’t work.
  71. 71. Things that worked
  72. 72. Improving new player experience
  73. 73. Optimizing profitable features
  74. 74. Improving referral systems
  75. 75. Improving payment flow
  76. 76. Investing in ROI positive marketing
  77. 77. Scaling Customer Acquisition
  78. 78. Cost of Customer < LTV of customer
  79. 79. Cash flow growth is awesome.
  80. 80. We reused $800k to grow our team 3 times. 35 20 12 7 Employees Revenue
  81. 81. 2011 Results• 3.4x revenue growth• 2x DAU growth• Record new accounts• Record daily revenue
  82. 82. 0 1000 4000 5000 6000 7000 8000 2000 3000Jan-10Feb-10Mar-10Apr-10May-10Jun-10 2010 Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11 PlayerFeb-11Mar-11Apr-11May-112010 2011Jun-11 Jul-11Aug-11Sep-11Oct-11Nov-11 GraphDec-11Jan-12 2012Feb-12Mar-12 Year+ <1 Month 3-6 Months 1-3 Months 6-12 Months
  83. 83. What are we working on now?
  84. 84. Benefits of this strategy • Build a “Parallel” brand • Shorter dev time • Stick to our strength • Stackable revenue streams
  85. 85. Go forth, bootstrap!
  86. 86. Justin Beckjustin@perblue.com @PerBlue @JustinKBeck

×