Alternative Funding for Game Developers
Transcript of Alternative Funding for Game Developers
ALTERNATIVE FUNDING FOR GAME DEVSGDC SAN FRANCISCO - FEB 2015
Pollen VC - GDC San Francisco 2015 2
THE REALITY IS THAT YOU NEED TO SUPPORT YOUR GAME LAUNCH WITH PAID UA
Everyone knows the stories about a few games that just go viral with no promotion. For the 99.9% of all other games and apps launched, it’s necessary to spend to acquire users.
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THE FUNDING GAP…
LAUNCH You’re earning money from day 1
This is your money trapped in the payment system
Apple Releases your cash
Pollen VC - GDC San Francisco 2015
Pollen VC - GDC San Francisco 2015
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HOW DEVS FUND USER ACQUISITION
Venture Capital
Using equity financing from your VC is expensive and dilutive (and they don’t like it…)
Publisher
The developer can’t afford to fund UA on their own so they look for a publisher and give up a rev share.
Credit Card
High growth or long tail developers don’t meet the credit parameters for ad networks, so relegated to pre-paying. Doesn’t work in high growth scenarios.
Err… Not at all…
So many times, the funding gap means that great apps and games never see the limelight as devs cannot afford to promote effectively.
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MONETISATION ACQUISITION SUCCESS
SUCCESS FORMULA
Pollen VC - GDC San Francisco 2015
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It’s not just the cash, it’s what you can
do with it.
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REINVEST DIRECTLY INTO PROMOTION
ACQUIRE MORE USERS
ACCESS FUNDING BASED ON DAILY SALES
Pollen VC - GDC San Francisco 2015
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TYPICAL LAUNCH SCENARIO
DOWNLOADS
LAUNCH
Dow
nloa
ds
Pollen VC - GDC San Francisco 2015
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TYPICAL LAUNCH SCENARIO
LAUNCH
REVENUE
Rev
enue
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TYPICAL LAUNCH SCENARIO
LAUNCH
Fail to get credit with
ad networks
Can’t reinvest to acq more
users
You get paid by Apple
DOWNLOADS REVENUE
Rev
enue
/ D
ownl
oads
Pollen VC - GDC San Francisco 2015
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LOWER YOUR EFFECTIVE CPI BY REINVESTING WHEN YOU ARE RIDING HIGH…
Pollen VC - GDC San Francisco 2015
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YOUR GAME FUNDS ITS OWN UA
Pollen VC - GDC San Francisco 2015
THANK YOU@martinmacmillan