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Game Investment Analysis 2013 by Sana Choudary, CEO of YetiZen. This presentation was used during AppNation conference on December 3, 2013
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Presented by:
Sana N ChoudaryCEO of YetiZen
December 3, 2013
Game Investment Analysis 2013
Agenda• Where am I coming from?• Our Methodology• Here’s what we found• Our Conclusion
Where am I coming from?
Where am I coming from?• McIntire, UVA for business strategy• In house analyst • NYC’s first entrepreneur hub • Foodspotting, Betfair, MTV Networks• Last 4 years Games• YetiZen
– 10000 developers at YetiZen events last year– 1500 startup applications per year, choose 16-20– Large extensive investor network—peak at YetiZen’s board
Our Methodology
Step-by-Step Process of our ResearchProcess: 1. Game investment deal data from 2012 and 2013 provided by
Raymond James2. Each deal cross checked with Crunchbase and other public sources to
determine:• Stage of the fund (Seed, First Venture),• The company type (Game Studio or Platform), • Date of inception.
3. Seed and Kickstarter deals were excluded
Additional Notes:• As we are in Dec 2013, we only used data between January to
November in our comparison between 2012 and 2013 • First venture rounds are the company’s first VC fund that comes
after seed / angel funds.
Here’s what we found
More Game Studios were invested in than Platforms
2012 20130
2
4
6
8
10
12
7
10
3
1
# of First Venture Investments by typeGame StudiosPlatform
3Increase
2Decrease
First venture funding is becoming later and later for Game Studios, indicating significantly more mature companies
Inception First Venture Financing
Reaching Fund in
35 Months for 2013
Reaching Fund in 26 Monthsfor 2012
With a lot more success…
Game Studio Highest Rank in 2013 for iOS
Plain Vanilla Corp. Top #1 in Trivia Games
Bash Gaming Top #1 in Casino Games
Kiwi, Inc. Top #1 in Role Playing Games
Pluto Games, Inc. Top #1 in Music Games
Bee Cave Games Top #4 in Casino Games
Hammer & Chisel Top #4 in Action Games
Arkadium Top #4 in Action Games
Performance and Success of First Venture Funded Game Studios in 2013
Decrease on the Size of Investment Deals
2012 20130
1
2
3
4
54
1.95
Median for Game Studio Investment Deals $ Milions
Our Takeaways
Our Takeaways• Venture comes in after significant traction. Plan for this. Do not
turn to venture for survival as you prove out product market fit
• Venture is valuable to scaling. Nine out of the top 10 grossing games in the U.S. iOS market today are from venture-backed
• All Venture companies invested in derived principle value proposition not from hit IPs and associated cash flows but on something else, be it a platform, distribution, or audience aggregation. VCs see these companies as having sustainable competitive advantage
