The TeamPartners Board of Directors Matti Kanninen Jukka Mäkinen managing partner Chairman of the Board Juho Risku partner, co-founder Jari Pasanen Member of the Board Antti Kosunen partner, co-founder, and Board member
Investing from pre‐seed to follow‐upUnqualified Qualified pre‐seed/seed Qualified expansion Financed – ExitAccelerating ”TechStars” Scouting Go fast forward Operationalization Follow or fail fast Scope of main interestStartUp Proof of Idea Basics Preparation Scale‐up concept 15‐90 k€ 200‐400 k€ 1‐2 M€ xx M€Financing First time Follow up Investment Exit Investment Σ < 500 k€ Σ < 2.5 M€
What early stage investors look for in a gaming companies?
Two models for venture financingEXIT VS. CASH FLOW
Exit driven model Cash from stock sale Expectations Exit 10 * Valuation Investor • Money • ExpertiseInvestor • Money • Expertise Cash flow Company Valuation
Exit driven startup• Has a very large market potential – Most of the potential not realized in a form of positive cash flow at the exit• Is easily scalable, usually globally – Smart customer acquisition logic built into business model is a plus• Has strong IPRs or a business model that accumulates value over time – Customer retention can be clearly articulated
Cash flow driven model Product launch End of life 1‐x% cash flow Company• IPRs (value) Product x • Money • Expertise Investor x% cash flow = 10 * money invested
Cash flow driven product• Requires less capital over life cycle, can accept more market behavior related risk• Has well defined, easy to understand product and clear simple business model• Has short time to market – Straight forward development, no technology related risk• Generates large positive cash flow fast – Has short sales cycle – Are usually consumer market products
Most game companies fall into “cash flow model” ‐category
How to choose the right modelExit driven model Cash flow driven model• The grand vision is large • Company is based on idea enough to fill the purpose of multiple products of the company alone • IPRs are mostly creative • IPRs are patents or content based and different accumulated during longer in each product period of use (information) • Founders like to keep the • Founders ready to sell the options open for future company or IPO is a realistic • Successful product can be option used as a future reference
Startups where in addition to money we can add value.
Investment criteria• Needs to have or plan to have some operations in the Oulu region• It’s scalable• There’s global demand and market• Driven by one of the market trends• IPRs are involved• There’s the Team
We like to get involved early on, preferably well before you need the money.