Digital Game Development

Transcription

1 Digital Game Development

2 In Partnership with

3 The Concept: Replicating the Success of GRAM GAMES Founded Target Markets Investors / Grants Headquarters Employees 7 YR1 Targets Break Even Positive Cash Flow Dotto 2009 New concept not yet Digital gaming TEYDEP grants targeted for YR2 Istanbul, Turkey 1 puzzle game 3-4 prototypes 7 employees 92K USD revenues 400K USD expenses YR2 YR3 Our aim is to replicate the success of GRAM GAMES in the Turkish and global digital gaming markets. We plan to utilize the know-how and lessons learned in building, launching and promoting digital games, accumulated while building up GRAM GAMES. We will be assisted by GRAM GAMES throughout this process, by active mentoring at the CEO level, as well as via tech support through the 2tones platform, in areas such as game design testing, Apple and Google Play Store connections, ad revenue management models, revenue sharing models, and human resources. We will further be assisted by Cankaya and Bilgi University teams in project support and development, as well as government grants such as TEYDEP. Fundraise 400K USD - 2 years 3

4 The Driver: Upbeat Market, Locally and Globally 1 billion plus digital gamers throughout the world, total market size of 111 billion USD 22 million digital gamers in Turkey; Over 50% spend money on digital games; total market size of 434 million USD Estimated 39 million hours of gaming per day in Turkey Turkish gamers ranked 1 st in the world with 38.4 minutes per gaming session on social media Market share of local firms in Turkish gaming market: only 5% Digital game development is a strategic priority for Turkey (Development Ministry, Information Society Strategy) 4

5 Encouraging Statistics Total Population 77M Active Internet Users 38M 5% growth since Jan 2014 Active Social Media Accounts 40M 11% growth since Jan 2014 Mobile Connections 70M 2% growth since Jan 2014 Active Mobile Social Accounts 32M 14% growth since Jan % of mobile connections are broadband (3G/4G) Facebook is the top social media network (26%) 41% of the total population use mobile internet Average daily use of social media is 2H 56M Turkish gamers play the longest and pay the most Source: Eastern Europe s Digital Games Market, 2014; Superdata; Digital Games Market Intelligence 5

6 Our Team Volkan Dinc (CEO and Head of Product Development) is the founder of Dotto. A former consultant to the Minister of External Affairs of the TRNC and a C-level executive at Fit and Dotto, Volkan has had a successful career in IT consulting, technology ventures and digital gaming, accumulating valuable experience and know-how that will help in future similar ventures Mehmet Ecevit (Company Mentor) is the Founding Partner and CEO of Gram Games. Mehmet has created the first Turkish social game, Sanalika, and has played a pivotal role in the growth of Gram Games in Turkey and the global markets Mete Gonc (Advisor to the Board) is the co-founder and CEO of ENCODE IT Management & Consultancy. Mete s corporate management experience includes local and regional VP mandates at Symantec, CA, and HP, as well as Managing Consultant at Andersen and later E&Y Emrah Babal (Graphics Design) is an experienced graphic designer who has spent his entire professional career at Dotto, specializing in mobile platforms. Emrah has provided graphic designs for over 50 games and applications Gulzemin Uras (IOS Developer) is Dotto s IOS developer. Gulzemin started to work at Dotto before her graduation from university and has now performed all of Dotto s IOS development for the last two years Meltem Dinc (Project Management) is an experienced project manager. Prior to Dotto, Meltem has worked for AKSA Holding and Fina Enerji. At Dotto, she has managed important projects with EnerjiSA, Sehir University, Alfemo, and Tatil Sepeti 6

7 Us against the Competitors Principle Competitors Peak Games Gram Games Mobile Craft King Roveo IMPORTANT NOTES: 3-6 large online gaming companies currently active in Turkey The Turkish and Eastern European markets have significant potential For local firms the markets are relatively virgin territory The games that we plan on producing will focus on fast consumption during free and social times This will enable us to acquire a large user base, and hence ad revenues Once we gain mastery at this type of game, then we can move into different game types and revenue-making methods 7

8 Revenue Model Primary customer The digital gamer (online & social media) Strategic Partners How we make money Pricing model Revenue and number of customers to date Life-time value of an average customer (months, USD) Sales channels: Internet and social media Types of revenue: In-game advertising, in-app purchases CMO: Promote games to publishers, attract new users, increase ad sales Market driven, focused on adding the costs of developing, selling and running the gaming service and an anticipated level of gross margin None USD, 184 days (Turkey) USD, 144 days (Eastern Europe) 8

9 Marketing & Growth Strategy Develop and Innovate New games Prototypes Acquire new users and ad revenues CMO Sales channels Social media Find cash and investors Corporate Footprint Grants Investors Professional CEO Develop multiple prototypes, and obtain constant market feedback Keep developing new games every year Continuously look for and leverage government grants and strategic investors Focus on team spirit and working culture development Bring in professional CMO and formulate strategy to continuously acquire new users, increase ingame ads and in-app purchases Transfer to professional CEO after making the company attractive to international investors 9

10 5-YR Business Plan Year 1 Year 2 Year 3 Year 4 Year 5 Financial Performance 8, # of Games # of Employees ,000 6,000 5, Revenues (USD) 92K 365K 3.000K 5.000K 7.000K 4,000 3,000 6 Grant Proceeds (USD) - 200K 175K - - 2,000 4 Expenses (USD) (400K) (500K) (700K) (900K) (1.000K) 1,000 0 Year 1 Year 2 Year 2 Year 4 Year 5 2 EBITDA (USD) (308K) 65K 2.475K 4.100K 6.000K (1,000) EBITDA Revenues Expenses No of Games 0 10

11 Next Months Product People Performance Finances Develop 3-4 new prototypes in YR1 1 puzzle game at the end of YR1 4 more game launches in YR2 Level design game in YR2 Continued product development in YR3 New CMO by the end of YR1 TEYDEP program specialist in YR2 Stabilize team and working culture during YR2-3 Professional CEO at the end of YR3 In-game advertising and in-app purchases successfully launched in YR2 Accumulate knowledge for level design game by YR2 Company attractive for international investor at the end of YR2 (best case scenario) No profits for the 1 st 3 QTRs, possibly whole YR1 Enter TEYDEP 1507 program in YR2 (75% reimbursement) Break even in YR2 Positive cash flow during YR3 11

12 The Fundraise Size of fundraise How long does it get us? How will we spend it? What are our KPI s? 400K USD 2 years YR1: Rent, personnel expenses, SW and HW investments YR2: Additional advertising expenses (acquisition of new users), data analytics expenses 1 game in YR1, 4 games in YR2 Successfully enrolled in TEYDEP program Break even in YR K USD of ad revenue per day during YR2 What do we need to achieve before the next round? How else can you help us? At the end of YR2 the ultimate goal is to have a break-even company that can stand on its own feet and can produce attractive games for the digital market Provide feedback on our pitch Refer us to other potential investors 12

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