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Thierry BaujardDublin
8 September 2015
FINANCING FOR GAMES
Investment Network
• Pan European Investment Network in Creative Industries
• Sector specific Investment Fora: Game Co (Paris, Berlin), Publishing (Frankfurt Book Fair), Film (PFM London), Creative Industries (Cannes, Slush)...
• EU projects on Investment – like EIG with Dublin BIC and BW Con (Stuttgart)...
• Franco-German Video Game Initiative
• Public/private investment Schemes (France, Copenhagen)
• Investment Portfolio
Video game market : unstoppable growth
• Worldwide, the revenues for games are estimated to grow at an annual growth rate of 6,7 % to $ 86,1 billion by 2016.
• Mobile gaming is expected to grow at an average annual rate of 19% and 48% for tablets.
• Significant change of landscape over the last 5 years: ONLINE SHIFT
“increasingly games are produced, circulated and played ONLINE”
ONLINE SHIFT: Change of paradigm
• More screens —> more players • Role of publishers has changed• New types of games have appeared: • Business models are evolving• Marketing is key
The market is now split into “4 screens”: MOBILE & TABLETS, CONSOLE & TV
Need for new types of financing is needed
Some sources of financing
• Some national agencies – CNC in France• Some regional agencies – Medienboard in Germany• Some European support - Creative Europe in Development• Some technology support - BPI in France
But
• Very limited• Too long decision process• Recoupable loan• Project oriented only• Extension of film agencies – not VG specific
Developers‘ needs
• Project and company investment• Smart Money (Business models)• Cashflow for production• Marketing and sales support• Fair management of IP
• Involve private investors /VC• Business mentors• Sectors experts• Banks and guarantee schemes• Specialized marketing agencies• IP Valuation
Meaning...
Investors‘ perspective
• Knowledge of sector • Understanding of potential revenues• Input in monetization phases• Seeing traction and community marketing• Looking at a portfolio of projects/companies• IP valuation models• Seeing exit opportunities
• Identify sector specific investors• Attract Tech investors to co invest• Access to projects• Carry out thorough due diligence• Cross border investment
Educational games: a thriving sub - sector
• Industry expected to reach $5.5 billion by 2018
• 97 % of teachers use digital games specifically created for educational use
Serious Games
Edu-games based on entertainment products
E-learning
NEW!
Our actions
1. Educate investors to game sector2. Develop highly selected portfolio of projects3. Use cross marketing fertilization
1 Educating investors
• ENTER Training programme – supported by Creative Europe• Awareness raising workshops with investors• Customized workshops for interested parties• Switzerland, France, Greece, Finland, Denmark...• In partnership with EBAN, SLUSH, Bootcamp/Disrupt....
• Creative Europe Guarantee Fund• Starting in 2016 for bank loans on a portfolio basis• Open to video games
2 Development portfolio offer
• Fund Project developped for Paris VG cluster• 35 projects selected by Capital Games Board over investment
period (3 years)• Investment decision made by investment committee and key
players (publishers, other stakeholders...) • Public/private funding• Isolation of IP through a single purpose vehicle for investment• Possible buy-out option
3 Film-based VG projects
• Development of premium, educational games based on arthouse/commercial movies
• Access to film IP and to marketing campaign in distribution countries
• Address new audiences in an interactive way• Synched to other ancillary rights – for example music – • Just-temptation.com - Leading continental European film
music financier offering deal flow and relevant selection process
Eileen Gray - www.e1027game.com
The Eileen Gray project
• A celebration of the life and work of the renowned designer/architect.
• The Price of Desire– Biopic Film 9M€
• Gray Matters TV Documentary
• Photo project from Julian Lennon
• E.1027 Video Game based on house
• Official Soundtrack, composed by Brian Byrne and financed by Just Temptation
• Definitive book presented for the Year of Design
• Key exhibitions Dublin, Paris, NY, Los Angeles
Financing/investment• Premium for IPAD and PC• Co production UK/ Germany• Budget: 150K GBP• Financing: 50% Public, recoupable, 50% private investment• Revenues: equal on parri passu basis till public recoupment, then 75/25 parri
passu for investors• Target audience: Designers, architects. Professionnals and students – as well as
non gamer community• Investment in a strong brand
