VXGaming LLCBusiness Plan Presentation

by

Aake Christian Gregertsen

Business Concept - Overview

• Software/Game Development Company

• Atlanta, GA

VXGaming LLC

Business Concept - Products and Services

• VXGaming Tournament Platform

– Mod for Counter-Strike: Source

– Create account online

– Free download

– Deposit money

– Pay a fee to enter tournament

– Winner takes 90%

– VXGaming takes 10%

VXGaming LLC

Business Concept - Need

• Tournaments from home

• Immersive virtual environments

VXGaming LLC

Business Concept - Uniqueness

• Currently no similar systems

• VXGaming client

• Social networking portal [vxgaming.net]

– Account

– History [Transactions, Matches]

– Communicate

• EvenMatch™

VXGaming LLC

Target Market – Size & Demographics

• Males 18-34

• PC Gamers

• United States

• Current FPS gamers

• 174 million gamers in US

• FPS most popular genre

• 62% online

VXGaming LLChttp://www.edge-online.com/news/npd-group-174m-gamers-us |

http://www.gamasutra.com/php-bin/news_index.php?story=8241

Target Market - Characteristics

• PC Gamer

– 2 Games month

– 15 hours week

– 98% primarily use PC for gaming

– 93% male

– 88k average household income

VXGaming LLChttp://dl.futureus.com/assets/pcgamer_media_kit.pdf

Competition – Major Competitors

VXGaming LLC

Competition – How To Beat Them

• Win money

• More excitement

• Superior matching system

• Integrated social networking

VXGaming LLC

Competition – Barriers To Entry

• Development costs

• Server infrastructure

• Licensing

– Agreement with Valve Software

VXGaming LLC

Marketing Strategy – PC Gamer

VXGaming LLC

• #1 Magazine• $88k per household• Disc sponsor

- $50k- CD Cover - Software- Article

• 3 Half page ads- $8k each

Marketing Strategy – Other Mediums

VXGaming LLC

• Google Adwords

• 2010 E3 [June 15-17]

– Los Angeles

Marketing Strategy – Primary Message

• Play to win

• Fun and profit

VXGaming LLC

Marketing Strategy - Website

• www.vxgaming.net

– Social networking

– Account balance

– Game history

– Network

VXGaming LLC

Management - Positions

• President

– Aake Christian Gregertsen

• Bachelor of Science [Game Development]

• Master of Science [Entertainment Business]

• Dual Valedictorian

• C/C++/Ruby/Assembly

• Specialty: Software security

VXGaming LLC

Management - Structure

VXGaming LLC

President

Vice President

Lead Programmer

Programmers

Lead Artist

Artists

Lead Web Developer

CSR Manager

Phone Customer Service

Representatives

Game Masters [in-game CSR]

Email/Online Support

Representatives

Growth and Milestones

• 6 months development

• 125 concurrent players first launch month.

• Increases by 125 players each month until market capacity of 3000 concurrent players is reached.

VXGaming LLC

Year Net Profit ($)

2010 72,000

2011 6,325,000

2012 11,600,000

Financials – Startup Costs

VXGaming LLC

Item Quantity Price ($) Total ($)

Adobe Creative Suite Licenses 9 1,800 16,200

Visual Studio Licenses 7 800 5,600

Maya License 1 3,200 3,200

Development Computers 10 2,500 25,000

Network Equipment [Cables, Routers, Switches] 1 1,000 1,000

Office Chairs 15 200 3,000

Office Desks 15 200 3,000

Office Space [2 months+ 2 months deposit] [2000sq ft @ $1 sq/ft] 1 8000 8,000

Book Shelves 10 100 1,000

Filing Cabinets 10 100 1,000

Refrigerator/Microwave/Water Dispenser 1 1500 1,500

Multi Purpose Printer/Copier 1 5000 5,000

Attorney / Accounting / Insurance 39,000

Office Supplies 2,000

Total 114,500

Financials – Assumptions Terms

• 6 months development• On average each game round lasts 20 minutes with a $2

entry fee per player. [$0.1/min/player Gross Sales]• $144 per player/day• Monthly gross = $144 * 30 * number of players• CS:Source = ~100,000 concurrent players. • Capture 3% of this market• 90% of payout• 10% to house• Ramp Up: 125 concurrent players first month, increasing

by 125 players/month until market capacity is reached.

VXGaming LLC

Financials – Assumptions Year One

VXGaming LLC

Assumptions 2010 ($)

Net Sales 11,340,000

Cost of Goods Sold -10,206,000

Gross Profit = 1,134,000

Expenses - 1,117,584

Net Profit = 16,417

Profit Margin 0.14%

Financials – Assumptions Year Two

VXGaming LLC

Assumptions 2011 ($)

Net Sales 81,000,000

Cost of Goods Sold - 72,900,000

Gross Profit = 8,100,000

Expenses - 2,065,050

Net Profit = 6,034,950

Profit Margin 7.45%

Financials – Assumptions Year Three

VXGaming LLC

Assumptions 2012 ($)

Net Sales 147,420,000

Cost of Goods Sold -132,678,000

Gross Profit = 14,742,000

Expenses - 3,141,894

Net Profit = 11,600,106

Profit Margin 7.87%

Financials – Expenses

• Salaries

– Employee Benefits

– Payroll Taxes

• Professional Services

– Accounting

– Legal

• Rent

• Working Capital [$450,000]

VXGaming LLC

Financials – Sources and Use of Funds

• Seeking: $650,000

– Equipment/Furniture: 65,000

– Supplies: 2,000

– Fees/Professional: 47,000

– Working Capital: 450,000

– Total: 564,500

– Reserve: 85,500

VXGaming LLC

Financials – Return on Investment

• $650,000 Loan

• $1,000,000 Return at End of 2012

– 154% return on investment

VXGaming LLC

Financials – Exit Strategy

• Buy-out

– Brand

– Infrastructure

– Technology

VXGaming LLC

Thank You!

Questions

VXGaming LLC