A quick (and ugly) presentation for a gaming event.

1. ”An investor view of gaming startups”
BerGame
Bergamo - March, 5th 2013
Niccolò Sanarico
Associate, dPixel
www.dpixel.it - nico@dpixel.it
twitter.com/il_nico
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2. First, some introductions
Me, bullet-pointed:
- MSc in ICT Engineering, PoliMi
- MSc in Compure Science, UIC@Chicago
- MBA, Oxford University
- Today: Associate & dealflow manager @dPixel
- Board Member and #1 fan, Mangatar
- Past: ICT Consulting & Corporate finance
experience (Neptuny/Moviri, Strempel&Co)
- Ever: Geek & Tech Passionate
Opinions are mine, unless otherwise stated
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3. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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4. What exactly is Venture Capital?
cashflow corporate lifecycle
ongoing growth continuing growth
ongoing maturity
early ending
turnaround
of growth
time
early insolvency
early stage expansion stage
seed start-up first second third late stage later stage
stage stage stage stage stage
- Venture Capital
Turnaround Financing
Growth Capital types of
Private Equity
Buyouts
+
debt
involvement
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5. A selection of the Italian VC scene
Expansion
Early Stage Later stages
stage
Reveunes
“FF&F”
Time
• Small investment • Average investment (€ • Significant investment (>
• (< € 1mil) 1mil to €10mil) €10mil)
• Business start up • Business development • Business Discontinuity
• Hands on approach • Round A, B, C, D (Acquisitions, turnaroun
ds, vulture…)
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6. A value proposition for VC
Not Just cash!
- Leverage the VC partner’s experience
Active Investor - Strong focus on product, customer and go-to-market
- Help in planning&recruiting (CxO, bizdev, etc..)
- Support & coaching to the management team
Collaboration - High standards for performance, management & integrity
- Eccellenza nell’execution
- Access to strong network when required
Relationships - Access to international markets
- Co-investments with other VC funds, support in fundraising
- Efficient use of cash
Efficiency - Holistic approach to resources
- Create value for all stakeholders
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7. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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8. The Italian innovation factory
• Our Team is at the core of innovation in ICT and Internet in Italy
• Strong proprietary dealflow: 1600 business plans received
between 2010 and 2011, >600 in 2012
• Since January 2011, we launched Digital Investments SCA
SICAR, a Venture Capital fund, of which the Seed Compartment
is currently active
• In 2012 we launched a new scouting initiative, the Barcamper –
www.barcamper.it
• We are advisor for Telecom Italia’s Working Capital
Accelerator project
• We have built and still growing strong international relationships
(Kauffman Fellow Program, Silicon Valley, Startup Sauna)
We help talented entrepreneurs in creating
successful enterprises
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9. Our Portfolio
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10. Where do we invest
E-Commerce: Italian market Mobile Apps: 25B app download
worth 8B$ in 2011, +20% with in2011, market will reach $25B by
respect to 2010 (*) the end of 2015 (*)
Internet
& Cloud Computing: booming
Digital Media market ($3.7B in 2010, €10.5B
in 2015) (*)
Bioinformatics:
Expected market Smart Grid: market size
size in 2015: $5B will double from €5.6B in
(*) 2010 to €9.6B in 2015 (*)
INFORMATION &
COMMUNICATION
TECHNOLOGY
Life Sciences Clean
& &
Medical Devices Green Tech
(*) Sources: gartner.com, techcrunch.com, scottmadden.com, ibtimes.com, repubblica.it
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11. What do we look for
Team Track Record Commitment
- Be ready to expand internationally
Global entrepreneurs - Innovative, motivated, with track record
- Ambitious and with the ability to execute
- Aligned to shareholders interests and motivated to create value
- Opportunity to dominate a market segment
Market Oriented - Ability to capture market more important than market size
- Market segmentation and targeting are key to success
- Fast mover / first mover advantage?
(R)Evolution - Revolutionary and evolutionary technologies: disruptive or improving?
- New business models
Visionaries Execution Traction
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12. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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13. What I look for in a gaming startup
1. Traction.
2. Retention.
3. Pipeline. Let me elaborate a bit
4. Awareness.
5. Ok, well, Team.
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14. Traction
“Quantitative evidence of market demand”
- Naval Ravikant
• Show traction!
• Ideally, in order of relevance:
1. Profits
2. Revenues
3. Active Users (MAU/DAU)
4. Registered Users
Remember: you build it bottom up!
5. Traffic
• Don’t have it? That’s ok, but know how to build it.
Have a plan.
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15. User Retention
“The percentage of a user segment who used your
service in period A who also use your service in
period B, where period B comes after period A.”
- An answer on Quora
• In the gaming world, it means players have fun with
your game, and are willing to return.
• So, I expect games to be fun.
– IMHO, one of the key aspects of game design.
– 1-day retention
– 1-month retention
• Understand what makes players come back.
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16. Pipeline
• The Gaming industry is not anymore only about the
Hollywood-style “multi-million dollar hit”
• New distribution channels+gaming platforms
-> web, mobile, social networks, OUYA
• Fast development cycles
-> graphic libraries, gaming frameworks
• Fast game evolution cycles
-> social, location-based
• Do not rely on a hit-or-miss single title, find a vertical
market, aspire to become a hit-factory*.
*but be ready, as hardly every title will be a hit
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17. Awareness
• As a team, you should know your strengths …
• … and your weaknesses
• Understand your player acquisition and retention
drivers. Be able to explain them.
• Ask “why” things happen. Observe. Act.
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18. The team, a MUST have
• 2 / 3 founders
• Complementary skills
• Chemistry/ ability to
execute
• Statistically proven +
nobody invests in one-
man-bands Would you
bet on these
guys?
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19. Farewell
Niccolò Sanarico
dPixel srl
Via Filippo Turati 38, Milano
nico@dpixel.it - 334 585585 3
twitter: il_nico
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