2. First, some introductions
Me, bullet-pointed:
- MSc in ICT Engineering, PoliMi
- MSc in Compure Science, UIC@Chicago
- MBA, Oxford University
- Today: Associate & dealflow manager @dPixel
- Board Member and #1 fan, Mangatar
- Past: ICT Consulting & Corporate finance
experience (Neptuny/Moviri, Strempel&Co)
- Ever: Geek & Tech Passionate
Opinions are mine, unless otherwise stated
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2013 - dPixel
3. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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2013 - dPixel
4. What exactly is Venture Capital?
cashflow corporate lifecycle
ongoing growth continuing growth
ongoing maturity
early ending
turnaround
of growth
time
early insolvency
early stage expansion stage
seed start-up first second third late stage later stage
stage stage stage stage stage
- Venture Capital
Turnaround Financing
Growth Capital types of
Private Equity
Buyouts
+
debt
involvement
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2013 - dPixel
5. A selection of the Italian VC scene
Expansion
Early Stage Later stages
stage
Reveunes
“FF&F”
Time
• Small investment • Average investment (€ • Significant investment (>
• (< € 1mil) 1mil to €10mil) €10mil)
• Business start up • Business development • Business Discontinuity
• Hands on approach • Round A, B, C, D (Acquisitions, turnaroun
ds, vulture…)
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2013 - dPixel
6. A value proposition for VC
Not Just cash!
- Leverage the VC partner’s experience
Active Investor - Strong focus on product, customer and go-to-market
- Help in planning&recruiting (CxO, bizdev, etc..)
- Support & coaching to the management team
Collaboration - High standards for performance, management & integrity
- Eccellenza nell’execution
- Access to strong network when required
Relationships - Access to international markets
- Co-investments with other VC funds, support in fundraising
- Efficient use of cash
Efficiency - Holistic approach to resources
- Create value for all stakeholders
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2013 - dPixel
7. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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2013 - dPixel
8. The Italian innovation factory
• Our Team is at the core of innovation in ICT and Internet in Italy
• Strong proprietary dealflow: 1600 business plans received
between 2010 and 2011, >600 in 2012
• Since January 2011, we launched Digital Investments SCA
SICAR, a Venture Capital fund, of which the Seed Compartment
is currently active
• In 2012 we launched a new scouting initiative, the Barcamper –
www.barcamper.it
• We are advisor for Telecom Italia’s Working Capital
Accelerator project
• We have built and still growing strong international relationships
(Kauffman Fellow Program, Silicon Valley, Startup Sauna)
We help talented entrepreneurs in creating
successful enterprises
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2013 - dPixel
10. Where do we invest
E-Commerce: Italian market Mobile Apps: 25B app download
worth 8B$ in 2011, +20% with in2011, market will reach $25B by
respect to 2010 (*) the end of 2015 (*)
Internet
& Cloud Computing: booming
Digital Media market ($3.7B in 2010, €10.5B
in 2015) (*)
Bioinformatics:
Expected market Smart Grid: market size
size in 2015: $5B will double from €5.6B in
(*) 2010 to €9.6B in 2015 (*)
INFORMATION &
COMMUNICATION
TECHNOLOGY
Life Sciences Clean
& &
Medical Devices Green Tech
(*) Sources: gartner.com, techcrunch.com, scottmadden.com, ibtimes.com, repubblica.it
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2013 - dPixel
11. What do we look for
Team Track Record Commitment
- Be ready to expand internationally
Global entrepreneurs - Innovative, motivated, with track record
- Ambitious and with the ability to execute
- Aligned to shareholders interests and motivated to create value
- Opportunity to dominate a market segment
Market Oriented - Ability to capture market more important than market size
- Market segmentation and targeting are key to success
- Fast mover / first mover advantage?
(R)Evolution - Revolutionary and evolutionary technologies: disruptive or improving?
- New business models
Visionaries Execution Traction
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2013 - dPixel
12. Today’s menu
• Of VC, the environment and everything
• dPixel, Venture Capital Advisor
• What I look for in a gaming startup
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2013 - dPixel
13. What I look for in a gaming startup
1. Traction.
2. Retention.
3. Pipeline. Let me elaborate a bit
4. Awareness.
5. Ok, well, Team.
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2013 - dPixel
14. Traction
“Quantitative evidence of market demand”
- Naval Ravikant
• Show traction!
• Ideally, in order of relevance:
1. Profits
2. Revenues
3. Active Users (MAU/DAU)
4. Registered Users
Remember: you build it bottom up!
5. Traffic
• Don’t have it? That’s ok, but know how to build it.
Have a plan.
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2013 - dPixel
15. User Retention
“The percentage of a user segment who used your
service in period A who also use your service in
period B, where period B comes after period A.”
- An answer on Quora
• In the gaming world, it means players have fun with
your game, and are willing to return.
• So, I expect games to be fun.
– IMHO, one of the key aspects of game design.
– 1-day retention
– 1-month retention
• Understand what makes players come back.
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2013 - dPixel
16. Pipeline
• The Gaming industry is not anymore only about the
Hollywood-style “multi-million dollar hit”
• New distribution channels+gaming platforms
-> web, mobile, social networks, OUYA
• Fast development cycles
-> graphic libraries, gaming frameworks
• Fast game evolution cycles
-> social, location-based
• Do not rely on a hit-or-miss single title, find a vertical
market, aspire to become a hit-factory*.
*but be ready, as hardly every title will be a hit
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2013 - dPixel
17. Awareness
• As a team, you should know your strengths …
• … and your weaknesses
• Understand your player acquisition and retention
drivers. Be able to explain them.
• Ask “why” things happen. Observe. Act.
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2013 - dPixel
18. The team, a MUST have
• 2 / 3 founders
• Complementary skills
• Chemistry/ ability to
execute
• Statistically proven +
nobody invests in one-
man-bands Would you
bet on these
guys?
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2013 - dPixel
Crowdfunding: e.g. SiamoSoci (circa!), AngelList (circa!) o piattaforme di crowdfunding reward-based-Ancora non regolamentato, in attesadeidecretiattuatividellaConsob in Italia. Grande opportunita’ ma ancoragrandiinterrogativi.
Idealmente, ilmodomigliore permostrare traction parte daiprofittifino al traffico, in ordinedecrescente di importanza.Il modo in cui costruisci traction, all’opposto, parte dal traffico per arrivareaiprofitti.
Cisononumerositrattatisu game design, sulconcetto di divertimento. Nessunbisogno di essereaccademici, ma il game design puo’ e deveessereconsiderato come un’attivita’ progettuale e non puramentecreativa. Understand what makes players come back. Build, Test, Act.
