Financing games: Is there any hope?
Where is this market going?
History of me
The Enigma
• The video game industry has growth of >10% CAGR • Denmark is supposed to excel in creative industries • There is a lot of capital in the market • Video games are underfunded. • What’s going on?
What are you guys pitching, anyway?
• A game?
• A business?
• A vision?
• A dream?
• A pipe dream?
- and to whom?
To your bank? GTFO
Industrial investors aka publishers
Venture capital?
Seed funding
Seed funding
Seed funding
Seed funding
Seed funding
Crowdfunding
• https://en.wikipedia.org/wiki/List_of_video_game_crowdfunding_projects
The reality of construction projects
What the investor sees
What the investor feels
It’s all about investment competency and risk
• Investors need to balance risk and reward • Your business model typically looks like this in stage zero
• In other words: the knowledge/assumption ratio is low
Aside: is a high knowledge/assumption ratio good?
(Schema Theory)
- and there really are only two kinds of investors
Financial Strategic(wants to get out) (wants to stay in)
So is there hope (the Enigma)?
• Game developers can
• Go for the grammar
• Find evidence
• Work together
• Investors can
• Spread the risk
• Find talent
• Work together
There’s another hope (a third kind of investor)
Startup incubator & accellerator
Most importantly
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Thanks for listening
[email protected] Twitter, etc.: @mazspork https://dk.linkedin.com/in/mazspork
Sam Altman’s Stanford lectures on “How to Start a Startup” videos and ebook can be found at http://startupclass.samaltman.com
