Alternative Funding For Game Devs - GDC2015 - Pollen VC

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ALTERNATIVE FUNDING FOR GAME DEVS GDC SAN FRANCISCO - FEB 2015

Transcript of Alternative Funding For Game Devs - GDC2015 - Pollen VC

Page 1: Alternative Funding For Game Devs - GDC2015 - Pollen VC

ALTERNATIVE FUNDING FOR GAME DEVSGDC SAN FRANCISCO - FEB 2015

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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

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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.

Pollen VC - GDC San Francisco 2015

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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

Pollen VC - GDC San Francisco 2015

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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

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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

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THANK YOU@martinmacmillan