Post on 21-Mar-2017
Disclaimer:
Thiswillbetotallybasedonthepersonnelexperiencefromthelatestfundraisingexperience,andfocusonearlystageofseedrounding.
Eachcasewillbedifferent.
Founder&CEOofSubdreamStudios, Inc.- VRCEO@COPOPLNI(ContinuetoSubdream)- Mobile– VRExecutiveProducer@Kabam(AcquiredbyNetmarblein2016)- MobileFounderCEO@Gala-Net(AcquiredbyWebzenin2013)- PC
Jikhan Jung
Only Seed round, and that’s it
Title LaunchDate Downloads Highlights
April28,2016 ~50K
• Vive (OculusTouchversionindevelopment)• 2nd highestplaytimeforSteamVRgames(Link)• Featuredonmajormedia(Venturebeat,Upload)• 20+VRArcadePartnership
August12,2016 ~40K
• Oculus&GearVRMulti-platformrelease• ~10%ofRevenuefromIn-AppPurchases• FeaturedonOculus&GearVRstore2times
October19,2016 ~0.8K
• Vive• 100%positiveuserreviews• Narrative-drivenSingle-PlayerAction-adventureGame
E x p l o r i n g G a m e D e v e l o pm e n t a c r o s s D i v e r s e G e n r e s a n d b o t h S i n g l e - p l a y e r a n d M u l t i - p l a y e r
COLOPLNIGames
20154Q 20161Q 20162Q 20163Q 20164Q 20171Q
Nov2015Releaseof“SlotTubParty”
Aug2016
TeambeganresearchingVirtualRealitytechnologyandgames
BegandevelopmentofCyberpongVR
Feb2016 Apr2016ReleasedCyberpongVRforHTCVive
Releaseof“Longbeard”
Oct2016
SubsidiaryofCOLOPL->SpinningOff->TypicalSiliconValleyStart-up
Closed$1M,andanother150Kisontheway.(Total4investors)
Timeline
ApprovalfromCOLOPLboardonmakingVRgames
ApprovalfromCOLOPLboardon“SpinOut”
Feb2016 Aug2016
Findinginvestors
Nov2016
Spinoffnotworking,QuittingCOLOPL
Jan192017
Findinginvestors
StrtingSubdreamStudios
Subdream Studios,Inc.
OurBlubs,
"SubdreamissocialVRgamingstudiolocatedinSanMateo,CA,foundedbyseriealgamingentrepreneurJikhanJung.
Teamhasreleased3VRgamesthisyearatCOLOPLNI,~100Kdownloadswithmeaningfulrevenue.
Subdreamisgoingtofigureoutwhatbestsocialgamingexperience isinVR”
JIKHANJUNGCEO/Producer
MICHAELLOPEZSr.Engineer
FOUNDINGTEAM
STAYINTOUCHjjung@subdreamstudios.com1515SElCaminoReal,SanMateo,CA94402
ABOUTUS
SubdreamStudiosaimingtobebiggestsocialVRGamingStudiotargetedforbothVRArcadesandHomemarket.
Coreteam@SubdreamStudioswasatCOLOPLNI,USsubsidiaryofaleadingJapaneseGameDeveloperandPublisher,COLOPL.In2015,studioreleased2mobiletitles, and3VRtitles in2016.CyberpongVR,SlotTubParty,andTheRiseoftheCaptainLongbeard.
Buildingonthesuccess ofitsfirstthreegames,SubdreamStudios willbegindeveloping thefirsteverplatformforSocialVRGaming.Theplatformbringsplayerstogetherinalobbywheretheycanchallengeeachotherin2-4personmultiplayerVRgames.Asimple PCinterfacecanbeusedtoquickly setupmatches,makingiteasyforVRArcadeoperatorstoprovide theirguestswiththebestexperience.
#2CyberpongVR is
nominate2ndlongestplayedgameperowner
Link
~100KdownloadsmostlyfromHigh-end
VR
~90KTotalRevenue
Jikhanisaserialentrepreneur,founderandex-CEOofGala-Net,firstfree-to-playgamingplatformgPotatoinwesternmarket,successful M&Aexitin2013
Raising$2MM
7MValuationCap20%Discount
SAFEE
Currently$1.15M
Closed/Commited
TargetclosingdateMarch2017
24monthrunSubdreamPlatform
V1.0+5multiplayerVR
Games
FukutaKanjiArtDirector
KhoiLeProgrammer/SocialMedia
Subdream Studios,Inc.
Status Owner Player LapsetimeJoin Jikhan 2/4 1:04Playing Guest1 2/2 5:05Spectate Jeff 2/4 2:05Private Mike 1/2 1:07Join Russ 1/4 0:20Join Jen 1/4 1:02
C R E AT E NEW PLAY S I NG L E
Canweraise?
Possibilitythatyoucanraisefromthegoodinvestors
(1)Founder– Exitbefore(oranythingrelevanttobeappealed)90%
(2)Team– ExperiencedinVR(oranythingrelevant?)8%
(2)Product– Hitinthemarket?2%
Whattoraise?
SAFE ConvertibleNote SeriesA
ValuationCap ValuationCap Pre,PostValuation
DiscountRate DiscountRate Maxamounttoraise
TermtoConvert Liquidationpreference
Interestrate Anti-dilution
Rightoffirstoffer
Co-Salesright
Drag-along
BoardofDirector
FounderStock
VotingRight
SAFE>ConvertibleNote>SeriesA
SAFEisinventedfromtheYCombinator,verysimple,oneform,onlynegotiateValuationCap,DiscountRate
Fromwhomtoraise?
Whyfundraise?
Capital(90%)+Alpha(10%)Alpha:Nextround(80%),Network(15%),Advise(5%)
Capital:VRislongwaytogo.18+monthrunratetobebetter.Otherwaytogo:GrantsfromHMDcompany,governmentproject,workforhire,projectfinancing,Licensingcontract,crowdfunding.
NextRound:Unlessyouhaveabighittosustainyourgrowth,nextthingisanotherfundraising.
(1)Possibilityofleadingnextround(2)Exitexperience
Anydifferencebycountry?
U.S.– SiliconValley:Unwillingnessoninvestingingaming(HitDriven)
U.S.– LosAngeles:Willingnessoninvestingingaming/Contents
Korea–:Noreplymeansnointerest:Evenyesmightnotmeansyesuntilyouclose.
Japan–:Clearonreaction:Yesmeansyes:Prettyfastdecision
China–:VRinterestiscalmingdown
Howtoapproachtoinvestors
(1)BestifyouhavebeenbuildingtherelationshipwiththembeforeyourstartupDeNA,GenesiaVentures
(2)Introofyoursuccessfulentrepreneur friends
(3)IntroofotherVCs(TheyknowwhichVRsarelooking)CognitiveInvestment
#Makingthemtoapproachtoyou!
Notagoodidea(1)RelyonyourBDperson(Iclosed0frommyBDperson’snetwork)(2)Slowonresponse. (But,mightbesometimesgoodtomakethemtowaitforyourdecision,givingthemimpressionyouareselective?)
Valuation?
DependFounder(s)/Team/Games
NoGameonthemarketyet(3~$7MCap,Seed)
Gameinthemarket,nohityet(5~10MCap,Seed)
Gamehit(15M~pre,SeriesA)
(1) Funding
21
Ifyouaresmall,acceleratorfirst?
SiliconValley(1)HTCViveX(SF,Busan,China,Taiwanetc):$100M.
:Typicallyinvest~$150KConvertibleNote+~6%commonstock.
(2)BoostVC(SanMateo):$6.6M
(3)FrontierTechnologyVentures(SanFrancisco):$21.03M:UsedtobeRothenberg,Riverprogram,but…
ChinaYouzu:UCCVR:ShanghaiJapanGumi:TokyoVRStartup:TokyoKoreaYJM:SeoulVRStartup:Seoul
Superventures :AR:$10M
VRFocusedInvestors- Accelerator
(1) Funding1.COLOPLVRFund(Tokyobased,investingglobal):$100M(FOVE,Nitero,VRbase,Sliver,OwlchemyLabsetc):Shintaro,Yoda
2.TheVRFund(SanFranciscobased,investingmainlyU.S.):$50M(AgainstGravity,8i,Immservetc):Marco,Tipatat.
3.PresenceCapital(SanFranciscobased,investingmainlyU.S.):$10M(BaobabStudios,Uploadvr,etc):Amit
4.GREEVRCapital(SanFranciscobased,investingmainlyU.S.):$12M(Vrchat,etc):Teppei
5.MetaverseVC(SanFranciscobased,investingmainlyU.S.):$4M:Don
VRFocusedInvestors
(1) Funding
AsianCountries
Korea:Notmuchglobalefforts.KCubeVentures/YJMGames/KIP/CognitiveInvestment/Altos
Japan:VeryActiveonglobalefforts.COLOPL/Gumi/GREE/DeNA
China:AbithardtoinvesttoU.S.(anyothercountriestoo)Youzu/Shunwang/CRCM/legendary/Sparkland/WestSummitCapital/Xyspace/Raine