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Play Ventures - Demystifying Fundraising
The document outlines a five-step guide for successfully pitching to venture capitalists (VCs), emphasizing the importance of understanding what VCs do, identifying if VC funding is suitable, and preparing an effective pitch. It highlights the factors VCs look for in startups, such as global ambition and a strong team, and discusses alternative funding options and the significance of founder-VC fit. Additionally, it provides practical advice on tailoring pitches and preparing necessary materials for potential investors.
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Introduces venture capital, Play Ventures' background, and definitions. Highlights VC roles and investments.
Explains VC investments aiming for returns, including the power law in exit strategies.
Discusses various funding methods including VC, angels, project financing, public funding, and crowdfunding.
Focuses on necessary preparations for pitching to VCs including crafting pitches and practicing effectively.
Highlights variations in VC firms in gaming, including their stage of investment and geographical focus.
Describes what Play Ventures seeks in startups and emphasizes the importance of founder-VC compatibility.
Provides details on how to connect with Play Ventures and includes contact information.
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Play Ventures - Demystifying Fundraising
- 1. D E MY 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. 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. PLAY VENTURES FUNDI PORTFOLIO Play Ventures has invested in 23 companies to-date
- 4. #1 WHAT EVENIS A VC What do VCs do? What do they look for?
- 5. VC 101 ‣ Couldhave 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. VC FUNDS GETRETURNS FROM EXITS A C Q U I S I T I O N S I P O
- 7. BUT THERE’S THEPOWER 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. #2 IS VCFOR YOU? What are alternative funding options?
- 9. EXTERNAL FUNDING + Largeamounts 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. Pitch Checklist forSeed 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. Pitch Checklist forSeed 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. PROJECT FINANCING + Individualgame/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. #3 PREP YOURPITCH What do you need to have in place?
- 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. #4 REMEMBER: NOTALL VCS ARE THE SAME Tailor and prioritise
- 16. GAMING VC FUNDS EARLYLATER ▸ How early? ▸ Pre-product? ▸ Pre-revenue? ▸ Pre-incorporation? ▸ Series A onwards ▸ Metrics ▸ What traction must you show?
- 17.
- 18. WHAT DOES PLAYVENTURES LOOK FOR? Amazing Team Social Product Free 2 Play Big Ambitions
- 19. PLAY VENTURES FUNDI PORTFOLIO
- 20. #5 FOUNDER-VC FIT Askquestions!
- 21. Pitch Checklist forSeed 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. G E TT 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/ [email protected]