David Gardner discusses the rapid growth of mobile gaming and its dominance over traditional gaming platforms. He introduces London Venture Partners (LVP), the venture capital firm he works for. LVP focuses on investing in mobile gaming and social networking startups. Gardner looks for intelligent, passionate entrepreneurs with insights into gaming and fast iteration. He enjoys helping European entrepreneurs succeed in the gaming industry.

1. The Need for Speed
David Gardner

3. IN
10
MINUTES
I
WILL
TELL
YOU
• Who
I
am
• Where
things
are
going
• Who
are
LVP
• How
I
choose
my
investments
• Why
I
do
this
• What
you
should
do

4. WHO
AM
I?

7. WHERE
ARE
WE
HEADED?

8. THE
COMMERCIAL
INTERNET
IS
NOW
~20
YEARS
OLD

13. PenetraKon
of
WW
PopulaKon,
5
Years
APer
Launch
8X 3X 2X
8%
4%
3%
1%
PCs (1988) Facebook (2009) Internet (2000) iOS & Android (2012)
Sources:
United
States
Census
Bureau,
InternaKonal
TelecommunicaKon
Union,
Facebook,
Flurry

14. Something
profound
happened
last
year…

18. So,
what
do
people
do
on
mobile?

25. Apps vs. Games: App Store Top 25 Grossing
UNITED KINGDOM FRANCE GERMANY
28%
40%
36%
64%
60%
72%
UNITED STATES CHINA TOTAL
12%
12%
30%
70%
88%
88%
GAMES APPLICATIONS
Source:
iTunes
App
Store,
May
2012,
Flurry
analysis

26. Indies Dominate on iOS & Android
INDIE VS. ESTABLISHED GAME SESSIONS ON iOS & ANDROID, WW
40% 44% 32%
60% 56% 68%
Q1 2010 Q1 2011 Q1 2012
Independent iOS & Android Game Developers Game Companies from other Platforms
Source:
Flurry
AnalyKcs

27. iOS & Android Games Eat
Traditional Gaming Revenue
U.S. PORTABLE GAME SOFTWARE BY REVENUE
19%
34% 36%
11%
57% 58%
70%
9% 6%
2009 2010 2011
iOS & Android Sony PSP Nintendo DS
Source: Flurry Analytics, The NPD Group; Flurry analysis & estimates

29. WHO
ARE
LVP?

30. 25+ years 15+ years
EA COO ING/Barings
Atari CEO Commerzbank
Avista
David Gardner Paul Heydon
General Partner General Partner
LVP
Team
20+ years 25+ years
Renderware Mindscape
Criterion Sony President
founder Atari President
Microsoft
David Lau-Kee Phil Harrison
General Partner Advisor
© 2011 London Venture Partners LLP
Confidential and Proprietary, all rights
reserved

31. Global
Fundraising
in
Game
Sector
VC
Funding
in
Europe
was
only
19.6%
of
the
vc
funding
in
North
America
in
2011;
(USD$
millions)
Europe
is
underserved
by
VC’s
2,500.0
$8.4bn
raised
since
1997
2,000.0
1,500.0
1,000.0
500.0
0.0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source:
Capital
IQ,
Company
Filings,
Brokers
&
Press
North
America
Europe
Asia/
Pacific

32. Dealflow
Analysis,
To
Date
Dealflow
by
Category
Dealflow
by
Territory
Other
Payment/DistribuKon
30%
PromoKon/analyKcs
Europe
Cloud
plaiorm
ROW
Tools/technology
4%
66%
USA
Social
network
Trad
online
games
Casual/social
games
Dealflow
EU
0.00%
5.00%
UK
10.00%
15.00%
20.00%
25.00%
FR
30.00%
35.00%
8%
1%
40.00%
7%
SE
7%
NL
DE
53%
10%
DK
7%
FI
7%
CZ
© 2011 London Venture Partners LLP
Confidential and Proprietary, all rights
reserved

33. WHAT
I
LIKE
TO
SEE
IN
AN
INVESTMENT

35. +
+
INTELLIGENCE
INSIGHT
PASSION

36. vs

37. LOW
LATENCY
IDEAS

38. FAST
ITERATION

39. CURIOSITY

40. MORE
THAN
A
GAME

41. I
LIKE
TO
UNDERSTAND
WHY
PEOPLE
LIKE
IT

42. GOOD
CHEMISTRY

43. WHY
I
DO
THIS?

45. WHY
I
DO
THIS
• Frustrated
with
bad
inerKa
at
big
companies
• Couldn’t
turn
around
Atari
• Early
investor
at
Playfish
• Funding
for
“games”
was
hard
• Love
Europe
• Love
Entrepreneurs
(that
listen)
• Love
the
industry

46. WHAT
YOU
SHOULD
DO

48. “If
Pac-­‐Man
had
affected
us
as
kids,
we'd
all
be
running
around
in
dark
rooms,
munching
pills
and
listening
to
repeKKve
electronic
music.”
―
Marcus
Brigstocke