From established studio

to fragile startup

Martin Walfisz

November 9, 2010

Founded in 1997

130+ employees

Acquired by Vivendi Games 2002

Acquired by Ubisoft Entertainment 2008

Awarded 42nd best studio in the world

“Explosions must look amazing!”

“The best games in the world!”

MMORPG + QUIZ = MMOQ

CASE STUDY:

THE PLANETO PITCH27 SLIDES + APPENDICE

€ 1 000 000(in 3 rounds)

THE FOUNDERS2 SLIDES

THE VISION & PRODUCT8 SLIDES

Whoa!

Isn’t that a bit overwhelming!?

Planeto is a Quiz Platform,

not a single quiz game…

Talking about platforms and technology

is generally a good thing.

THE MARKET6 SLIDES

THE BUSINESS6 SLIDES

THE INVESTMENT OPPORTUNITY1 SLIDE

THE TWIST1 SLIDE + APPENDICE

LESSONS LEARNED

Prepare a Short Pitch

• Sometimes you only have 5 minutes

• 6 slides

1. Founder’s background (if it adds value)

2. Your product/service (make it count!)

3. The current market (and your raison d'être)

4. Financials

5. What do you want from the potential investor?

6. Any secret twist?

Your Mindset

• Be very clear about what you pitch

• Listen & adapt to your audience– If it’s boring, you’re doing

something wrong!

• Find the right balance between long-term vision and “get the business off the ground”

I typically err on the side of conveyingtoo much vision & long-term plans…

Practice, practice, practice…

• The pitch is a live performance

• The investor invests in the person, not the plan

• Understand the eye of the beholder

• Live practice…1. Friends

2. No-money contacts

3. Smaller business angels

4. Established business angels & VCs

Improve, improve, improve…

• After every pitch, ask yourself what can be improved…

– Did the audience understand your idea?

– Did they understand the market?

– Did they understand the business and financials?

• …and then improve it immediately!

• Your deck is a living, breathing business plan…

Your [IRL] Network

• Meet people!

– Someone always knows

someone, that knows

someone, that knows

someone with money…

• Grab two lunches and

five coffee-breaks every

day

Understand the VC language

• Shares

• Value per share

• Ownership

percentage

• Preferred stock

• Stock options

• Equity

• Convertible loan

• Dilution

• blah and blah…

Company Valuation

Valuation methods:

1. Faith

2. Users/Customers

3. Revenue

4. Profit

It’s your valuation – be in control

(but be reasonable)

Closing a round

• Takes time and effort– For me it’s very emotionally exhausting

• Set a deadline– …and then hope that those verbally committed are still

onboard

• Don’t forget the formal process– Do you have the right to issue new shares?

– Register with authorities

• Share holders agreement– Get a good lawyer!

Some final advice

• Figure out a vision and business idea that you truly believe in –

your PASSION is key!

• You really can do anything – it just takes time and effort

• When things go wrong, cry for 24 hours, then wake up and fix

the problem

• Raising money takes a lot of effort – bootstrap for as long as

you can

• …but avoid asking for money when you are desperate

THANK YOU!