How to start a new game business using our startup Everyplay (www.everyplay.com) as an example case. Delivered at the Casual Connect Europe conference, in Hamburg, Germany on 12th February 2009.

1. Confessions: Jussi Laakkonen Everyplay February 10-12 2009 Casual Connect Europe 2009 Starting your own game business

2. http://jussilaakkonen.wordpress.com February 10-12 2009 Casual Connect Europe 2009 Full presentation with notes & audio track:

3. Hi, I’m Jussi!

4. since Aug 2008 CEO, founder

5. Main organizer Entrepreneur for 15 years Demo & LAN party with >6000 visitors a year

6. Business development director Multimillion € deals Produced games Filled the dishwasher Console racing games >3M units sold previously

7. Confessions

8. confessions

10. Why start a (game) business?

11. Passion – I got to do it!

12. Passion – I got to do it! Do your own thing

13. Passion – I got to do it! Do your own thing Nobody else gets it!

14. Passion – I got to do it! Do your own thing Nobody else gets it! Change the world

15. Passion – I got to do it! Do your own thing Nobody else gets it! Change the world The last great adventure

16. Passion – I got to do it! Do your own thing Nobody else gets it! Change the world The last great adventure Get rich quick  epic fail

17. must have killer idea, right?

18. your first idea will suck .

19. get over it. get going.

26. so, my first idea? confessions

27. ” Hype or real deal?” panel virtual worlds, microtransactions heureka! the future of games! confessions

28. Guild Wars + ” Diablo 2 Casual MMO” & confessions

29. a ”me too” idea P.S. check out Guild of Heroes on Facebook ;-) killed it early confessions

30. Just a speed bump. I knew the future! confessions

31. Look for the opportunity

32. big risks high growth new audiences mass distribution change in behavior disruptive technology unclear business models something that currently sucks

34. Customer base Viral distribution Rule changing

35. Persistent online Virtual goods Flash

36. Distribution Paying customers Finally mobile doesn’t suck

37. Persistent online Virtual goods Unity, Flash XBLA / PSN?

38. Games in non-game apps New domain & customers Unproven

39. social gaming co-creation with users persistent world virtual goods open web APIs Flash client Does it make a tasty soup? We’ll see... confessions

40. an idea & promising market =

41. ideas are a dime a dozen

42. execution is king

43. PEOPLE, PEOPLE, PEOPLE!!!

44. PEOPLE, PEOPLE, PEOPLE!!! So good that they can walk on air!

45. 2-4 founders tech, biz, art, design

46. because you have to get more done with less

47. Smart people who get things done Marissa Mayer, Google

48. FIERY PASSION

49. Get somebody who hates selling less than starving don’t hire a suit

50. No assholes A single person can destroy your new company.

51. confessions Bizdev Sales, marketing Partners Studio mgmt Server lead Game server CEO Product owner Production PR, finance CTO Game client Design Detailed design Game mechanics All art AD

52. GET STUFF DONE FAST

53. Agile & Lean for EVERYTHING Not just code, but also business and management

54. All your plans are just guesses

55. Release early & often Measure Learn Implement

56. 9/10 startups die because they couldn’t find customers

57. Develop your customers

59. Don’t worry, be crappy. Guy Kawasaki

60. We game developers in general SUCK at real user driven iterative development. Radically new stuff for me. confessions

61. Scrum for production Customer development for biz. confessions Still learning it.

62. It always takes longer than what you expect. 5 months of iterating, learning. Reduced scope for earlier launch. confessions

63. So, where do I get the money so that I can start?

64. nobody said it was easy.

65. your own savings 1.

66. Friends & Family 2.

67. Work for hire games and other industries 3.

68. R&D tax credits Available in most EU countries Tax credits, grants or loans 15-70% of R&D costs Paid months after costs were incurred 4.

69. Preproduction grants National, regional & EU wide programs 10 – 100 k€, max 50% 5.

70. Angel investors Not many ”game millionaires” vs. a lot of ”IT millionaires” Hard – not impossible 6.

71. publisher advances a.k.a. paying customers Only after you’ve already spent lots of money on the prototype 7.

72. Seed funds Semi-governmental e.g. VeraVenture in Finland 50-500 k€ SeedCamp, Y-Combinator... 10-50 k€ 8.

73. Venture Capital Fuel to grow faster. Not for new companies or hit-driven game studios Only for scaleable businesses like MMOs Great if you will be sold for >50M€ in less than 5 years. 9.

74. 2007-2008: VCs invested $1,7 billion in online games Still available for best game businesses.

76. Our success recipe for public grants & loans: confessions

77. Strong team Bold vision Game + platform Own money invested Experience with the paperwork Win one, and a snowball effect starts confessions

78. So, what does it feel like?

79. Loving every minute! confessions

80. start smart