Speaker(s): Tom Warden, Allstate; Henry Mahncke, Posit Science; Peter Christianson, Young Drivers of Canada; Evian Gordon, Brain Resource; Michael Scanlon, Lumos Labs In a recent SharpBrains survey, decision-makers and early adopters were asked, "What is
Session by Tim Chang, Norwest Venture Partners.
Description: The Healthy Games opportunity, as a product, destination, network and community, is growing. This opens the door to professional venture investors to partner with entrepreneurs to explore business models that can ensure the sustainability and long-term impact of healthy game developers.
Venture firms Norwest Venture Partners and FirstMark Capital invested $3m in Lumos Labs in June 2008, making it their first investment in the healthy games category. Tim will outline their business rationale and evaluation process, addressing why Norwest decided to play in the space, why they selected Lumos Labs, and the opportunities and challenges to build a sustainable healthy games company.
Similaire à Speaker(s): Tom Warden, Allstate; Henry Mahncke, Posit Science; Peter Christianson, Young Drivers of Canada; Evian Gordon, Brain Resource; Michael Scanlon, Lumos Labs In a recent SharpBrains survey, decision-makers and early adopters were asked, "What is
Similaire à Speaker(s): Tom Warden, Allstate; Henry Mahncke, Posit Science; Peter Christianson, Young Drivers of Canada; Evian Gordon, Brain Resource; Michael Scanlon, Lumos Labs In a recent SharpBrains survey, decision-makers and early adopters were asked, "What is (20)
Handwritten Text Recognition for manuscripts and early printed texts
Speaker(s): Tom Warden, Allstate; Henry Mahncke, Posit Science; Peter Christianson, Young Drivers of Canada; Evian Gordon, Brain Resource; Michael Scanlon, Lumos Labs In a recent SharpBrains survey, decision-makers and early adopters were asked, "What is
1. Tim Chang
Principal
Norwest Venture Partners
www.nvp.com
tchang@nvp.com
+1-650-321-8000
2. Norwest Venture Partners (NVP) - Introduction
Inception in 1961
- 45 year investment history
- Funded more than 400 companies
- >60 active global portfolio companies
Managing >$2.5B in venture capital
- Current fund of $650M raised in 2006
- 12 investment professionals
Global VC firm
- Based in Palo Alto, CA
- Office in India; Investing in India for more than five years
- Office in Israel
- Active investments in US, India, Israel, and China
Consistently ranked in top quartile of venture capital firms
6/18/2009 NVP Confidential 2
3. NVP Investment Focus
Software
Infrastructure
SOFTWARE
Applications
Services
Business SYSTEMS
Communications
Infrastructure
Outsourcing
SERVICES
Internet, Media & Consumer
Mobile
SEMICONDUCTORS
Gaming & COMPONENTS
Social Media / Web 2.0
Advertising / Ecommerce
INTERNET,
Systems MEDIA &
CONSUMER
Communications
Enterprise
Semiconductors & Components
6/18/2009 NVP Confidential 3
7. Topics for Today
Some topics I'd like you to address
why Norwest was looking for opportunities in the space
why you chose Lumos
since the investment, how has your thinking evolved?
what are the 5-year opportunities and challenges to build a
sustainable company (both in terms of Lumos and general
advice for researchers/ entrepreneurs in the audience)
6/18/2009 NVP Confidential 7
8. The Crystal Ball: 1-2 years out…
The Short-term View:
- 2002 all over again? Or more systemic nuclear winter?
- Dance (Collision?) of the Elephants?
- “Survival is the New Growth” & the Barbell Response
- VC = “Vulture Capitalists”?
Key themes:
- Re-invention of Media: “Participatory & Social Media” (e.g.
Gaming)
- Ad model = fast track to recycle bin…how else to make $??
- Growth areas: International, Cleantech/Green, Healthcare
- Shift towards capital efficiency…and smaller-scale
outcomes? Never a better time to start a lifestyle business?
6/18/2009 NVP Confidential 8
10. Why Gaming will Rescue Us All
Media as interactive experience vs. packaged, static
“content” (ex: GuitarHero)
Formalization of key human behaviors & addictions
(leveling, collecting, badging)
Alternative business models: freemium, free-to-play +
microtranscations, virtual currencies, hybrid subscriptions
(Nightclub model)
User-interface breakthroughs
Orthogonal growth in gaming: music, health, education
Better Simulation & Modeling
6/18/2009 NVP Confidential 10
11. Lessons from Web 2.0 / Social Media
Facebook is the new Marketing/Trailerware Channel
Celeb is the new PR
Twitter is “Push Digg of the 5 Ps”
The new split-screen experience: “Social/Media”
- Editorial / Premium / Featured on the Right…
- …voice of the audience / UGC on the Left
Social media = 2-way feedback channel from the
audience…but do you have a thick skin to listen to a
“dialogue” about your brand/product/service?
“Social is a Fabric, not a Market”
6/18/2009 NVP Confidential 11
12. How Do You Drive Adoption / Addiction?
What Makes Someone Buy a Virtual Good?
Idealized Framework… …and Practical View
Examples:
Pride Envy Gluttony Lust Anger
…etc
13. Case Study: Lumos Labs
Background:
- Stanford Neuroscience PhDs + Disney Corp Dev/Private Equity exec
- Founded late 2006; Seed-funded by friends/family/angels for $400k
- Lumosity.com went live as a general beta in 5/07, ramped to 6M monthly
page views and 180k registered users by 12/07
- Already generating healthy subscription revenue prior to VC funding
Thesis points:
- Growth of Healthy Gaming category
- Careful balance of Science + Fun
- Lightweight interface: browser-based Flash games
- Broad-based demographic appeal
- Cross-platform product: web, social network app, iPhone/mobile
- Multiple revenue streams: subscription, virtual goods, ad, lead-gen, data
- Multiple markets: consumer, healthcare, enterprise
- Proprietary data business long term?
- Capital-efficiency!
6/18/2009 NVP Confidential 13
14. Opportunities & Challenges: 5-year Scope
Oppportunities:
- Aging of Digital Immigrants; Rise of Digital Natives
- Gaming as mainstream media and engagement/money-making vehicle
- Healthcare Crisis in US:
- Subsidies? Flight to overseas solutions and markets?
- New emphasis on accountability & measurement?
- Preventative Tools?
- UGC/DIY/Social healthcare?
Challenges:
- Assembling the Right Team
- Fundraising Environment
- Multi-platform backend: “Cloud-based Services”
- Distribution Channels & Marketing
- Exit Opportunities: Lifestyle business? Small M&A “flip”? IPO?
6/18/2009 NVP Confidential 14
15. Evolution Path of Web 1.0 to Web 3.0
Web 1.0 Web 2.0 Web 3.0
• Persistent Persona &
• Static destination • Dynamic sites / Locker in the Cloud
sites / “Decks” SocNet pages • Dynamic Mix of Editorial &
• “Authored” / • Mashable / User- UGC, Socially Filtered
• Integration of web +
Produced Content Gen Content
mobile + STB + etc.
• PC-centric • PC-centric / Mobile • Key enablers: Real-time
• Key enablers: • Key enablers: Transcode, Rich Media
HTTP, Browser, AJAX, Widgets, ADN/CDN, Personal
Dial-up, CDN RSS, Flash Video Portable Identity, Virtual
World, Contextual UI, etc.
Connected Connected Connected
Nodes & Profiles & Devices &
Pages… Widgets… Data Sets…
6/18/2009 NVP Confidential 15
16. The Crystal Ball: 5-10 years out…
The Long-term View:
- Approaching the Singularity?
- Creation of entire new industries and value
chains = creation of new $1B+ industry leaders
Key themes: (see TED.com, X-Prize)
- Human 2.0: bionics, cybernetics, genomics
- Robotics: connected and adaptive
- Sustainability
6/18/2009 NVP Confidential 16
17. www.nvp.com
Tim Chang
tchang@nvp.com
6/18/2009 NVP Confidential 17