Financing & Business Realitiesmeet Virtual Reality

Jürgen Goeldner

FIDIUS TRUST

On the same page…Basics

„Immersive multimedia or computer-simulated reality,

replicates an environment that simulates a physical presence in

places in the real world or an imagined world, allowing the user to

interact in that world. Virtual realities artificially create sensory

experiences, which can include sight, touch, hearing, and smell. “

(Wikipedia)

Devices: Mobile Devices and/or PC/Console

Engines: Unity, Unreal and Crytek

On the same page…Consumers

On the same page…Hardware

Is VIVE the winner with

• Stand-Up

• 360 movement

• Depth perception (HMD resolution)

• Positional tracking ???

On the same page…Hardware 2

Manufacturer Hardware launch

Oculus Q 2 / 2016

Sony (36m VR-ready) H1 / 2016

HTC Vive Q1 / 2016

Microsoft 2016

Samsung + Google 2015

On the same page…The Potential

On the same page…to be considered

Investments by area

Broadcasting

Audio Theme Parks

75 announced

games (IGN list 11

most anticipated)

Investors

• Accel

• Andreesen Horowitz

• Colopl Japan

• Dolby Family Ventures

• Formation 8

• Google Ventures

• Intel Capital

• Iris Capital

• Jafco

• J.P. Morgan

• Partech

• Qualcomm

• Rothenberg (incl. River)

• Shanda

• Warner Bros.ca. 300 companies with VR investments

Implications

Already many investments done (300)…..what is the effect:

Current VR active investors will focus on portfolio (trouble ?)

Fundraising in next 6-12 months more difficult until market potential isproven and/or positive trend available

The bar will be raised sharply …. Prepare yourself well !

Investment in detail

Preparation for investor approach:

1. Headline (content, technology, hardware, tools, analytics etc.)

2. Target Hardware / Audience

3. Concept

4. Business Model

5. Time table

6. Resources overview

7. Funds needed

details

Investment in detail 2

Concept

• Why in VR ? Are you a „first mover“ with your idea ?

• What is the „awesome VR feature“ convincing the consumer ?

(walking/running/ducking/crawling/body tracking/haptic feedbacks)

adrenaline rush for real (draw weapon, swing katana, pump shot-gun)

• Can it work across the platforms / devices ?

• Is your immersive (entry point) ACTIVE VR is the key word

(feeling an experience across your mind and body)

• Patents possible / filed / granted ?

• Social needs bigger than movement/multiplayer (safe-bet answer)

Investment in detail 3

Business Models

• Licensing

• Premium price

• Freemium

• F2P

• Subscription

Base projections on conservative (!) hardware forecasts !

Investment in detail 4

What else…..

• Is contingency built into funding requirement ( developers ) ?

• Incentive schemes at your location available ?

• Prove that you and your team have a DEEP understanding in VR

• Show…don‘t just tell (prepare visuals)

• Drive presentation on quality of product, not the promise of the future

FINAL Statement

DO NOT BELIEVE all the forecasts !

Industry experts think those are wrong in the short-term and wrong in the long-term….why ?....overestimated the financial potential of VR in the short-term - while costs are higher and content is limited - and underestimated in the long-term.

VR is going to happen….not just a hype !

We are not even at DAY ONE….none are the final solution yet !

This first year will not be boring……………………..THANK YOU