Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Play Ventures - Demystifying Fundraising

1,386 views

Published on

What is a VC? What do they do? What do they look for? Get a crash course on VCs and learn how you can maximise your chances of getting funded, before you even have your first pitch meeting.

  • Be the first to comment

  • Be the first to like this

Play Ventures - Demystifying Fundraising

  1. 1. D E M Y S T I F I N G F U N D R A I S I N G : 5 S T E P S T O P I T C H I N G S U C C E S S
  2. 2. PHYLICIA KOH & PLAY VENTURES ‣ Over 8 years experience in growth, PR in startups and at the Singapore Economic Development Board ‣ Play Ventures is an early stage gaming VC fund ‣ Based in Singapore and Helsinki, and invest globally ‣ Invest in pre-seed, seed stage F2P game studios and services
  3. 3. PLAY VENTURES FUND I PORTFOLIO Play Ventures has invested in 23 companies to-date
  4. 4. #1 WHAT EVEN IS A VC What do VCs do? What do they look for?
  5. 5. VC 101 ‣ Could have operational experience ‣ Or come from an investment background ‣ Have bosses too Your startup Invest capital into startups Because we told our investors we’d get them >3X returns Get money from investors Investors VC Own a % of your startup, which they hope generate massive returns
  6. 6. VC FUNDS GET RETURNS FROM EXITS A C Q U I S I T I O N S I P O
  7. 7. BUT THERE’S THE POWER LAW 1 2 20 4 5 6 7 8 9 10 NO. OF COMPANIES Credit: Jyri Engeström (@jyri) RETURNS 150X 100X 50X ▸ 97% of profits come from < 10 companies ▸ So VCs need ”Fund Returners” that give them > 100X to make up for poor performers
  8. 8. #2 IS VC FOR YOU? What are alternative funding options?
  9. 9. EXTERNAL FUNDING + Large amounts of capital + Help with connections, growth + Helps you scale quickly + Help with future financing rounds - Own a % of your company - Managing investors and your board takes energy and time V C + Connections, could form a collective + Fewer due diligence hoops - Own a % of your company - Smaller cheques - Follow-on financing less certain - May or may not have relevant expertise - If you raise from multiple angels, that can take up more energy, time A N G E L S
  10. 10. Pitch Checklist for Seed PitchRAISE VC FUNDING IF YOU HAVE… ▸ Global Ambition to build a $100M+ company ▸ Drive, vision and execution to be the #1 company and leader in your category ▸ Growth-first mindset ▸ The ability to hire the best people ▸ Tolerance for risk & uncertainty ▸ The will to change the world
  11. 11. Pitch Checklist for Seed PitchYOU SHOULD NOT RAISE VC FUNDING TO… ▸Just because “everyone is doing it” ▸Bragging rights ▸To finance just a game, a project ▸“To complete a prototype” ▸If you can’t deal with selling control of your company
  12. 12. PROJECT FINANCING + Individual game/project funding + Minimum guarantee provides security for the team for a period + Expertise and muscle in user acquisition, game development, etc. - Not all deals are favourable for developers w.r.t revenue share, platform exclusivity P U B L I S H E R O R P L A T F O R M + Some don’t need to be repaid + More public funding available for gaming now globally - Need patience for paperwork (now and in the future) - Some might have strings attached and restrictions P U B L I C + Retain ownership + Help build your player base even before development/launch - Doing a good crowdfunding campaign takes time and effort - Public failure might make other funding options more difficult C R O W D F U N D I N G
  13. 13. #3 PREP YOUR PITCH What do you need to have in place?
  14. 14. WHAT YOU NEED ▸ VCs look at THOUSANDS of funding applications every year ▸ A poor cold email will put you at the back of the queue ▸ Personalise, show why your company hits their sweet spot ▸ Have a one-paragraph elevator pitch others can use for warm intros ▸ Must-have for fundraising ▸ Not a game design document ▸ Have two versions – for pitch presentations, for reading ▸ Check out our Pitch Perfect Guide for more details (playventures.vc/pitchperfect) P I T C H E M A I L P I T C H D E C K P R A C T I C E ▸ Start by asking how they feel about your company ▸ Hard to pitch without visual feedback (facial expression, body language) ▸ Arrange to have a co-founder share screen so you see the VC ▸ Rehearse, rehearse, rehearse!
  15. 15. #4 REMEMBER: NOT ALL VCS ARE THE SAME Tailor and prioritise
  16. 16. GAMING VC FUNDS EARLY LATER ▸ How early? ▸ Pre-product? ▸ Pre-revenue? ▸ Pre-incorporation? ▸ Series A onwards ▸ Metrics ▸ What traction must you show?
  17. 17. GAMING VC FUNDS GLOBAL LOCAL
  18. 18. WHAT DOES PLAY VENTURES LOOK FOR? Amazing Team Social Product Free 2 Play Big Ambitions
  19. 19. PLAY VENTURES FUND I PORTFOLIO
  20. 20. #5 FOUNDER-VC FIT Ask questions!
  21. 21. Pitch Checklist for Seed Pitch Founder-VC Fit ▸This relationship will last for years ▸Ask about their value-add ▸Before taking investment, ask for references from their portfolio founders
  22. 22. G E T T H I S D E C K A T playventures.vc/readbeforeraising C O N N E C T W I T H M E @ppphyl linkedin.com/in/phyliciakoh/ phylicia@playventures.vc

×