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Social Games - End of the bull market?
- 1. VEL PARTNERS The end of the bull market?
- 2. VELOPARTNERS
- 3. VELOPARTNERS
- 4. VELOPARTNERS
- 5. VELOPARTNERS
- 6. Portfolio companies includes mobile, Facebook advertising, slots design, server-based gaming and Facebook gaming and with a broad geographic spread
- 8. It’s getting ugly out there
- 9. Are the big frothy exits over?
- 10. The ubiquitous soup of gambling apps…….
- 11. Can the smaller apps compete against the GIANTS?
- 12. The early movers are maintaining their scale advantage
- 14. Or.... who moved my ?
- 15. UIGEA passes Oct 2006, real money wagering sites hit the skids While somewhere in the Valley someone’s cheese was being moved....... * Editor’s note: couldn't’ find the Zynga 2007 graph...but you get the idea....
- 16. Likewise for casinos..... drink & poison
- 17. Both Facebook and Zynga as the bellwethers are lightning rods for the whole sector •Exacerbated by some external factors: •Social media companies generate huge media attention •Facebook’s wretched IPO hurting Zynga too But also creates opportunities for the rest of us
- 18. Zynga has always relied on this; now falling as substitutes emerge
- 19. And now for the glass half full
- 20. Some industries have highly correlated performance, that is not the case in social gaming TOBACCO SOCIAL GAMING
- 21. Even good ‘ol Zynga: •Daily active users came in at 72 mn (+23% yoy) •Mobile bookings grew 3X yoy ...while gamers on FB jumped 30m to 235m yoy And gaming is the secular growth area within entertainment While lets not forget that H2 graph used so often we ignore it: Graph extracted from The Economist
- 22. Not everyone is struggling
- 23. Product innovation drives growth
- 24. •Massive growth in mobile and Android (1m activations a day!) •Zynga.com as a new platform (challenging hegemony of iOS, FB, Google) •The convergence story is real (casual/real; land/online) •Regulation of US gaming will spur years of M&A •Casino has grown 90% Y on Y in Facebook •Quarter of all users on Facebook are playing casual games .....arguably....there has never been a better time......
- 25. Its never a good time to start a business
- 26. VELOPARTNERS Thank you... Evan Hoff Richard Hasson Twitter: @evanvrs ehoff@velopartners.co.uk rhasson@velopartners.co.uk