Forty-one percent of global startups have less than three months of cash, according to a recent report by Startup Genome. This means that it is time for everyone to send locations. This is why Ilya Eremeev, a seasoned producer and investor, created what he calls Perfect financing platform for game entrepreneurs.
Eremeev has heard a lot of pitch during his 12 years in the gaming industry. He is a senior executive producer at MRGV, the strategic investment fund of My games. In the past two years alone, Eremeev has seen or heard thousands of pitch decks, pitch emails, pitch audio messages, pitch notes, and even beach pitches. His business has invested in around 30 game companies in two years.
“I see hundreds of errors every year with messy decks,” he said in an interview with GamesBeat. “I realized there was no frame. I thought it would be easier for game startups to reach potential investors and provide them with really relevant information for evaluation. “
The 10-slide template includes all the information that potential investors should see, the exact order it should be, and most importantly, doesn’t include anything that shouldn’t be in a pitch deck, said Eremeev.
The company on deck is fictitious. The first slide is simply a brand opportunity, or a chance to print your company name and logo in the mind of the investor.
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The next slide should explain who the founders are and their roles in the business. Another slide explains the composition of the team, which should show how many people you have, how quickly you are burning money, and how balanced and experienced your team are as well as your growth plan. And the following slides explain the previous games they worked on, a proposed new game that requires funding, a competitor analysis, a roadmap, and key performance indicators. If you don’t have successful titles, you can show which ones have failed and what you’ve learned.
The deck should also include exactly what you are asking for in terms of investment. Failure to include it is one of the most common mistakes. He suggests that investors should own about 20% of a company, while the founders should own the rest. He suggested that the founders should not give more than 30% in exchange for funding. And if you cannot yet determine the valuation of your business, there are financial instruments such as convertible debt that help you postpone this decision on valuation until later. (In the case of a convertible debt, the money you receive is a loan at first and can then be converted into a percentage of business ownership later).
“At first, the value of the business is completely subjective,” said Eremeev. “If you donate too much property, it will be difficult to do subsequent rounds. But the price you get from your investor will be the right price. “
The common amounts to be raised range from $ 1 million to $ 5 million, but each game company may be different in this regard.
The game should end with a preview of your profit and loss chart and a thank you message at the end.
Sounds simple enough, doesn’t it? This should be short, since most investors do not have much time to travel a giant bridge. If you are invited to come back a second time, you can load more slides into the presentation. But ideas about your mission, goal, values and strategy should be clear and easy to understand.
Eremeev also has his pet peeves about things he doesn’t like. “Please avoid phrases like” We have 600 years of combined experience, “” he said. “Experience cannot be combined.” Nor is it necessary to display analyzes or graphs of market growth, at least not yet.
When describing the game on a slide, this should include the basic concept, the target audience, the marketing positioning, the player’s story (like what the player does), monetization and screenshots. The competitor analysis slide shows how to better explain the idea and whether the space is a “red ocean”, with too many sharks chasing too few fish; or “blue ocean”, where there are few competitors.
Eremeev does not want people to bluff or lie in their main performance indicators. Just show what data you can, he says. The investment requested must show where the business is based and when it was founded, and the CapTable (ownership structure). It should indicate what you are asking for and under what conditions, how you are going to spend the money and when you want to spend it. You must finish with your contact details.
Eremeev said it didn’t take him long to set up the perfect funding platform because he had been thinking about it for a long time and really wanted to save time.
Once the land was approved and Eremeev wanted to follow up with the contractor, he said that the company generally wanted to see additional financial information such as profit and loss statements, cash flows and disclosure documents on Intellectual property.
“If you can’t put an idea into a sentence, maybe you didn’t understand it,” he said.