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New Legends Studios - Seed Deck 2014

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The seed round deck of New Legends Studios, a gaming startup.

This includes slides from the reading deck as well as the extra slides part for the presentation deck we used during Q3/Q4 2014. Hopefully, this will help someone out there. If you want the PowerPoint version just ping me on twitter (@civaxo).

You can read the related post over here: http://civax.net/2015/06/new-legends-seed-deck/

Published in: Business

New Legends Studios - Seed Deck 2014

  1. 1. Competitive Mobile Games that are fun to watch, fun to play.
  2. 2. Notes ‣ This is the “reading” deck used in the seed round of New Legends. ‣ We used another version for meeting presentation, which had much less text and some slides were removed / different. ‣ I did add the Extra Slides part from the presentation version, which contains many different slides used to show additional data potential investors may ask about. ‣ We used this deck around Q3/Q4 2014 so there should be more accurate/up to date data out there by now. ‣ We used the term “watchable games” instead of “eSports” as many investors didn’t know the term and understood it completely wrong initially. ‣ I got a lot of help from many people in the games & startup industry, and enjoyed many of the free resources out there for entrepreneurs. Releasing this deck is a way of giving back a little. I hope it will help others in some way. ‣ If you want the powerpoint version or just found this deck helpful and want to get me coffee in return contact me on twitter at @civaxo or check civax.net 2
  3. 3. Veteran Team Ohad Barzilay CEO, Co Founder Background: Mytopia GM (acquiredby 888), later COO & CCO. Grew team to 50 in 3 studios. Deepmist Studios CEO, Beit Berl AcademicStaff. Ian MacLean Art Director Background: Award-winning illustrator and animator, Worked for Sony, Zynga, Google, Irem, Paizo, Universal, A Bit Lucky. Eric Seufert Head of Marketing at Wooga Background: Currently Head of Marketing at Wooga, author of Freemium Economics. Previously Digital Chocolate, Skype. Eitan Reisin Chief Product + Ops, Co Founder Background: Head of Mytopia biggest studio & Game Designer, previously Game Client Team leader. Sagi Head of Development Background: Mytopia‘s Game Technology Lead across all studios. Ron Koren VP R&D at Novidea Software Background: Mytopia CTO and VP R&D. Zazma VP R&D. Designed the team’s initial server architecture and DevOps. Advisors X. CEO at [undisclosed] Background: Angel Investor, Multiple times CEO, (remain private). Investors ‣ All members have 4 to 13 years industry experience. ‣ All are hands on with engineering backgrounds. ‣ Launched & operated games together for +3 years, generating ~$1M monthly revenue. 3
  4. 4. Market Size Opportunity ‣ Sharing & watching gameplay videos is huge phenomena - more spectators than cable TV networks. ‣ Currently all top games streamed are PC/MMO games (competitive multiplayer games). ‣ Mobile is the perfect platform for streaming & watching – connected, has cameras, always with players. ‣ Mobile Games is biggest growing sector in the game industry (CAGR: Tablet +47.6%, Phones: +18.8%) ‣ Making fun-to-watch mobile games taps into the huge opportunity to bridge the two sectors. ‣ Key Technology enablers are now starting to release Mobile SDKs (Twitch, Everyplay, Kamcord) 2016E2016E Game Industry: $86.1 Billion 2016E Mobile GamesPC/MMO Games 4
  5. 5. Game Spectators > TV channels ‣ Twitch.tv is a website where players stream live game sessions and watch videos of other players. ‣ Has more viewers in prime time than MTV, MSNBC, E! and CNN. ‣ Was acquired by Amazon for $970 Million on August 2014. ‣ Recently released it’s streaming SDK for mobile devices. 565K495K 780K773K 625K Number of average prime time viewers Source: New York Times, 27 August 2014 (http://turm.us/1qfyz4s) based on Nielsen, twitchapps.com5
  6. 6. ~$70 Million Monthly Revenue ~$42 Million Monthly Revenue Not Free-To-Play game ~$42 Million Monthly Revenue (connected to twitch Sept 2014) Industry Players Data based on Twitch most watched games Top Titles on PC / MMO (that streams gameplay) Titles on Mobile (doesn’t stream yet) Titles on Mobile (that streams gameplay) ~$200 Million by EOY 6
  7. 7. Forest Tribes: Rise of Heroes Prototype Video Demo: http://turm.us/NLSdemo1 7
  8. 8. Forest Tribes: Rise of Heroes ‣ Free-to-play, Mid-core, Cross platform (iOS + Android) ‣ Competitive Turn-based Strategy game with Battle Cards mechanics – Clash of Clans meets Hearthstone ‣ Built to be fun to watch as well as to play: ‣ Simple basic rules, easy to pick up – hard to master. ‣ Designed to generate dramatic moments ‣ Play sessions fit mobile gameplay ‣ In-Game streaming and community system 8
  9. 9. What makes a game watchable Impact on Performance ‣ Competitive – Clear Winners / Losers ‣ Extremely High Engagement ‣ Simple Rules – easy to understand, yet allow depth ‣ Viral Acquisition – players stream events, shares, talk ‣ Skill is the biggest factor for winning, but luck can affect ‣ High Retention ‣ Unpredictable – anything can change until the end ‣ Develops Brand Loyalty ‣ Socially Inclusive – Encourage social interactions, events ‣ Works across genres (Midcore / Core genres) ‣ Foster Professional Players that fans learn to know and follow ‣ Becomes part of marketing strategy ‣ Allows creation of professional leagues and real world events ‣ Advantage over similar games / Clones Fun-to-watch Games DNA ‣ Essentially, a fun to watch game (or sport) match is a sequence of dramatic moments. ‣ Requires a specific approach to game design and integration of specialized game technology ‣ Not every game is fun to watch (e.g. puzzle games, pure luck games, repeatable/grinding gameplay) ‣ The virality and high retention of these games significantly lower the User Acquisition costs. ‣ Forest Tribes is designed & developed to hit all these points, with it’s competitive turn based gameplay. Why is this different than other games 9
  10. 10. Production Timeline Q2 2015 Q4 2015 Q1 2016 Q4 2016 Q1 2017 Q4 2014 Q1 2015 Q3 2015 Q2 2016 Q3 2016 Forest Tribes (Smartphones) Forest Tribes: Rise of Heroes (Tablets: iOS + Android) New Game Preproduction Production Soft Launch New Features 10
  11. 11. Technology *In-Game Community System DB Analytics Game Client Game Platform - Unity Server 3 + Game Server Server 1 Server 2 DB Server 1 Mixpanel Internal DB Server 2 DB Server 3 + Android Client Tablets Phones iOS Client iPads iPhones Possible Future Clients PC / Web / Consoles Game Admin Twitch.TV YouTube Others Others
  12. 12. Technology ‣ Cross Games Infrastructure: built in modules to allow usage in other games. ‣ Unity Platform: Developing on Unity allows us to compile the games across all platforms. ‣ In-Game Community System: Internal community management system is built to offer all game related game forums, posts, videos and more to be available within the game. ‣ 3rd Party SDKs: Incorporating 3rd party SDKs allows using latest services from top providers (Twitch, YouTube, Analytics services, Customer Support and more). ‣ Administration Panel: Allows real-time management of all game players, assets and balancing. In-Game Community (Internal mockup) Twitch feed of a streamed mobile game (actual, from Twitch) 12
  13. 13. Financial Projection for FT:RoH Quarterly Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Income - - $ 123,222 $ 398,894 $ 833,806 $ 1,504,714 $ 2,005,781 $ 2,866,711 $ 4,081,975 $ 5,607,011 $ 7,189,829 $ 8,154,687 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Income by Quarter
  14. 14. ‣ Assuming additional growth round of $2M at Q3, 2016 ‣ Initial Gameplay Prototype – Q2, 2014 (done) ‣ Raising First Round – Q3-4, 2014 (in progress) ‣ Soft Launch – Q2 2015 (6 months dev) ‣ Break even – Q4, 2015 (5 quarters from seed investment) Financial Assumptions & Milestones eCPI ARPDAU Stickiness Soft Launch $1.5 $0.10 16% Global Launch $2 $0.15 24% 12 Months avg, post global launch $3.5 $0.35 36% Milestones Assumptions
  15. 15. Now Raising Targets Marketing 36% Salaries 48% Others 16% $1M ‣ Hire Key Employees during Q4, 2014 - Q1, 2015 ‣ Soft Launch in Q2 2015 15
  16. 16. Join us to create New Legends Ohad Barzilay, CEO [email] [Israeli mobile number] [US mobile number] 16
  17. 17. Extra Slides 17
  18. 18. Mobile Games Worth Broadcasting ‣ Players sharing and watching gameplay videos is a huge recent phenomena, gaining more viewers than cable TV networks. ‣ These players gain fans, sponsors, compete in leagues and some become stars, generating millions for themselves and the game developers. ‣ Almost all of the games watched and streamed are free to play PC/MMO games. ‣ Mobile games is the fastest growing sector in the game industry yet have very few games worth streaming or that offer sharing video. This, while mobile is the perfect platform for streaming games and watching videos. ‣ We bring these two worlds together. We’re an experienced team developing competitive mobile games that are fun to watch as well as fun to play, and enable streaming and sharing of gameplay video from the mobile devices. 18
  19. 19. Mobile Games: $28.9 Billion by 2016 Mobile games generated $16 Billion in revenue in 20131 Source: NewZoo 2013 Global Games Market Report 1 Actual numbers, source: App Annie & IHS Digital Content Report 2013. Projected 2013 revenue was $12.2 Billion, which may indicate projected numbers are under-estimated. June 18, 2014: Juniper Research projects $28.9 Billion revenue 2016 (not $23.9B), $20.9 Billion revenue EOY 2014.19
  20. 20. Twitch bigger than MTV, MSNBC, CNN Spectators Games are already HUGE on PC, Consoles Source: KPCB Mary Meeker’s 2014 Internet Trends Report. StatCounter, 5/14.20
  21. 21. eSports Games - Past Source: InMobi, Mobile gaming cross market analysis 2014 Q221
  22. 22. eSports Games - Future Source: InMobi, Mobile gaming cross market analysis 2014 Q222
  23. 23. New Genre of Video = Spectator Gaming Players -> Players / Active Spectators Source: KPCB Mary Meeker’s 2014 Internet Trends Report. StatCounter, 5/14.23
  24. 24. Fans Trump Audience Alex Carloss (Head of Entertainment @ YouTube) Source: KPCB Mary Meeker’s 2014 Internet Trends Report24
  25. 25. Tablet growing faster than PCs ever Tablet units growing faster than PCs ever did, +52% 2013 Source: KPCB Mary Meeker’s 2014 Internet Trends Report25
  26. 26. Phablets growing faster than phones Phones with 5+ inches screens are taking over, even at Apple Source: KPCB Mary Meeker’s 2014 Internet Trends Report26
  27. 27. Tablet Users: Loads of growth ahead @ 56% of Laptops / 28% of Smartphones / 8% of TVs Source: KPCB Mary Meeker’s 2014 Internet Trends Report27
  28. 28. Games Dominates on Tablets Source: Flurry Analytics, Sep 201228
  29. 29. Rise of Mid-Core and Core Games High ratio of Mid-Core & Core players tend to be paying users. Source: NewZoo 2013 Global Games Market Report29
  30. 30. Source: Kabam, Internal Research data presented CasualConnect USA (August 2013) * ages 18 to 65; among mobile gamers only Audience: Population By Gamer Type* 21 13 5911 9 100 9 5 107 US Europe Asia Core Midcore Casual Core: FPS/RPG/Fighting/MMORPG/MOBA Midcore: Action-adv/Puzzle RPG/BCG/ CCG/ Sports/Racing/Empire/ Tower Defense/ Movie-based/ World-building Casual: Puzzle/Hidden Obj/Word/IQ/Board/ Casino/Farm/City/Restaurant/ Business Mgmt/ Platform/Pet/Educational/Party/ Music/Arcade/Fashion/ Drawing/Fishing
  31. 31. Source: Kabam, Internal Research data presented CasualConnect USA (August 2013) Audience: Demographics ‣ Age Differences are minimal across geos and gamer segments ‣ Sex differs across geos and gamer segments ‣ EX: Significant difference between core and casual in US and between core in US and Asia
  32. 32. Source: Kabam, Internal Research data presented CasualConnect USA (August 2013) Audience: Engagement 36% 36% 16% 15% 19% 18% 17% 35% 40% 24% more time Less time Midcore Segment Mid-Core Segment: ‣ Smartphone/tablet mid-core has the largest increase and the least decrease compared to other segments ‣ Smartphone/tablet above all other platforms
  33. 33. Free to Play and Communal Gameplay Source: Digi-Capital Global Games Investment Review 2014 Q1 Free-to-play and communal gameplay changing sector dynamics 33
  34. 34. Free to Play and Communal Gameplay Free-to-play and communal gameplay changing sector dynamics Source: Digi-Capital Global Games Investment Review 2014 Q134
  35. 35. Source: Kabam, Internal Research data presented CasualConnect USA (August 2013) Audience: Conversion Rates ‣ Mid-core shows the highest regional variability 41% 36% 48% 8% 18% 27% 6% 9% 14% US Europe Asia Core Midcore Casual
  36. 36. Smartphone Users = Still lots of upside @ 30% of 5.2B Mobile Phone User Base Source: KPCB Mary Meeker’s 2014 Internet Trends Report36
  37. 37. Mobile Usage continues to rise rapidly @ 25% of Total Web Usage vs. 14% Y/Y Source: KPCB Mary Meeker’s 2014 Internet Trends Report. StatCounter, 5/14.37
  38. 38. Image + Video Sharing Rising Rapidly Source: KPCB Mary Meeker’s 2014 Internet Trends Report.38
  39. 39. Games Dominates on Tablets
  40. 40. Mobile – the growing sector in games Source: NewZoo 2013 Global Games Market Report
  41. 41. Mobile – the growing sector in games Source: App Lift / Newzoo infographic
  42. 42. Source: NewZoo 2013 Global Games Market Report Gender by Device Type
  43. 43. Source: 2013 NewZoo Data Explorer Share of Mobile Game Payers
  44. 44. Source: NewZoo 2013 Global Games Market Report Game Revenue Per Store
  45. 45. Source: NewZoo 2013 Global Games Market Report Rise of Mid-Core & Core Games
  46. 46. Games Dominates on Tablets Source: Digi-Capital Global Games Investment Review 2014 Q146
  47. 47. Several games played in parallel Source: InMobi, Mobile gaming cross market analysis 2014 Q247
  48. 48. Time of Gameplay Source: InMobi, Mobile gaming cross market analysis 2014 Q248
  49. 49. League of Legends Revenue Source: InMobi, Mobile gaming cross market analysis 2014 Q2 2011 2012 2013 2014 $70MAverage monthly revenue in 2013 217%Growth in MAU - July 2012 vs. July 2014 49
  50. 50. Not only top 10 - Samurai Siege ‣ Generates ~$2 million monthly ‣ Top Grossing Ranks: ‣ iPad -> Games: US: 67, UK: 45 ‣ iPhone -> Games: US: 153, UK: 149 ‣ Android -> Games: US: 105, UK: 125

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