Writing a Pitch for my startUp (A Mobile Game), Should I pitch my "product" or my "company"?
I've been working on a mobile game for a while now and have built a prototype to show to potential investors. If one starts a crowdfunding campaign, on say kickstarter, he would generally pitch his Game and not his company. But, on the other hand, if one wants to approach an Angel, he would have to pitch his Game Company/Business instead of his Game. Is that right ? Could he pitch his game instead?
Other thing I want to know is that if I've a company already (which I do have) for Web/App Development Services, Can I use that same company to pitch to investors to be used as my Mobile Game Studio Company?
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Apr 3, 2014
Hi Garish, If you are pitching to investors, then you need to pitch your Company. They will require a proper business plan to review as investors are looking for return on investment (ROI) and want to make sure you have done your homework and are organized. Score Org. has business plan tools on line you can download. Here is the link, http://www.score.org/resources/tab-a
Investors are usually invested for a short time and will exit once they have made sufficient profit on their investment (usually 5 years or less).
Look at your 'game' as your product, so when you pitch your company you may have more than one product within your Company. A one product Company is a hard sell to investors as there is a lot of risk riding on a one product strategy.
Yes, the best way is to pitch to investors as your Mobile Game Studio Company. Under this umbrella Company you can then develop a series of products.
Hope this helps.
Apr 3, 2014
Traditional investors may invest in a start up if they understand the market and how the product is different, unique and has potential. There is an excellent book available on Amazon titled "Hot or Not' by Dr. Sean Wise and he explains how to evaluate a Company and an idea as to whether it will fly with investors. Kevin O'Leary of the Shark Tank writes the forward to this book. Here is a link. Excellent in advice here.
http://www.amazon.ca/Hot-Not-Know-Your-Business/dp/1468024493
Apr 5, 2014
Thanks Elaine. Would it be fine for the investors if my Company has no product yet ? Could I pitch them my 'company' and include future games in the pitch (along with my current game)? If there's no revenue made by the company yet, can you please guide me on what would be the best way to convince an investor to invest in my company when there are many 'other' gaming companies too ? Though my product is solid, but in an industry like Gaming, the success and profit are not presumable.
Apr 6, 2014
Garish, Your best bet is to get the book "Hot or Not" see above. It comes complete with a workbook. It is written from an Investor's point of view. The other way you look for an investment is go to a crowdfunding platform such as Indiegogo and see if you can raise funds that way for your game. It all depends on the market for your game. You need to do some research on your market demographic and the value proposition of your game(s) to this market demongraphic. Good luck
Apr 6, 2014
Hey Garish,
I just wanted to "second" Elaine's advice on this point. It's important to know the appeal your product will have to investors before you go in. That way you know how to approach them, and what is and is not a good idea to introduce to them.
Apr 3, 2014
Hey Garish,
Great questions! I would start first with your Value Proposition. When you go to an investor and ask for their money, you need to be able to provide them with value. So part of answering your own question is sitting down and recognizing whether your business or your app is bringing the majority of the value.
If your company that you have already is what owns the legal rights to the app that you've started, then what you are offering to investors is an opportunity to invest in/partner with you in your business. In this case your pitch should include both your business, and your app.
If you own the app independent of your business and are looking for funding in exchange for a royalty, then what you are pitching to investors is just your app.
In the case of Angels (a whole different type of investor), you are right yes, that you would want to pitch the app, and maybe just have your company logo in the presentation.
Hope that helps you out!
Apr 5, 2014
Thanks Stephen. I've my presentation ready (with my company logo in it, but highlighting just my game and not the company) and an email pitch.
When initially contacting them ('Angels'), Would you suggest sending them this Presentation as a pitch along with my email or a complete business plan ? And I have provided thorough analysis of the market and the revenue that other games (in my genre) are generating. Would that be enough of a proof of the revenue potential ? Because, as I'm yet in the Seed/Early stage, I've not started to generate any revenue yet.
Apr 6, 2014
Hey Garish!
I would first look at what exactly their looking for (because every investor has their own criteria), but generally it should be a business plan along with the analysis of the market that you've done. I would ask Elaine about her view on whether or not to send the presentation, but personally I feel that if they are purely "teaching aid" slides, then not. But definitely you should have your business card/logo etc. on whatever you're sending them.
Also, when you present, you should say something like, "I started ____ in 20__ in order to (purpose/mission statement of the company)." Then segway into something like, "What I'm going to share with you today is a product I've begun developing called ____" and then go from there.
Apr 3, 2014
The answer depends on 2 things:
1. How much do the product teams of the Company and the Product intersect? If you get the money, will the Product be the only/primary project for all, or will you be the head of development projects and game project simultaneously?
2. Are you betting on one big game project for the first year of startup existence, or position it as the first game in series?
I've done games and doing app development services now. They are VERY different businesses, even while both having "a bunch of developers and designers working together to create great things". From my experience, the best way is creating a pitch about the Product and how it will grow, what new products can be added later, and add team app development expertise as a strong point: "We have already created good products!".
In current mobile game development the primary tasks are good marketing/traffic management skills, good game design to keep monetization and retention at high points. If you go to Angel - show it. If you create Kickstater pitch - show how awesome is your game, as Kickstater is a customer, not investment platform.
Apr 5, 2014
Thanks Pavel.
1. I've just recently incorporated and still building a team for my web/app development business(which I used to run as an 'individual' before). I'm planning to use my company name as the 'brand' under which I'll serve my clients from now on and that would help me get more clients as well because of the credibility of a brand. As this "for the clients" development business is quite different from the "my own" game development biz, I would want to keep both of them separate and would need the investment in 'my' Game biz. Furthermore, I'm not sure but If I include my Web/app development biz details in my pitch, it may make the pitch a bit messy and the investor may feel that I'm not focusing on one specific business. Can you throw some light on how to manage that?
Apr 5, 2014
2. This would be the first game in the series. However, the future games development depend directly on this game's success. So, yes, I would be betting on this one big game project (which would require around 6 months including development and launch) and would build the next games if this one goes well.
I've expertise in this field and have done the development of some major projects for my clients and have marketed them as well with evidence. And I would definitely want to include that in my pitch, if it would be of any help.
Apr 5, 2014
1. The pitch won't be messy if you know for yourself the exact way your two businesses work along each other. Quick example: clients love your work and spread the word, and after that you have 2-3-4 meetings a day regarding new projects. Will you have enough projects managers/sales people to keep it delegated, or will you limit the project count, limiting the service business growth rate? It seems simple in the fist months, but later you have "I want to release this game, but there are limitless bugs that keep coming" vs "hey, this guy is ready to give me a good budget for this app". When it becomes clear for you, you can successfully answer investors' questions about it.
Apr 5, 2014
2. All marketing & community management skills are definitely things to tell about. The plan "what I do when the things are great" is good to include, too - as one successful game doesn't have a lifespan long enough to be the only revenue source 2 years after launch.
Apr 3, 2014
Hi Garish.! Showcase the company. If it is to Angels/ VCs, introduce the company, giving a quick overview of everything that has and is being done [web dev., apps, etc.]. Then move to the game, mentioning that this will be the key growth driver for the near future [assuming that's what your plan is].
Interested investors would not want to invest into your web/apps business, but it will provide a certain comfort with regard to your execution and management capabilities, etc.
If possible, use the same company for both, but without any attempts to deceive or confuse investors. They will dig deep enough to know everything there is to know, so be extremely transparent about the organization structure, etc. They might have ideas/ recommendations of their own with regard to the structure/ using the existing company or creating a new one, etc. And when you do get an investor for the game, they will make sure that the funds go towards that alone, and not your web/apps business. So if you have plans of diverting part of the funding to the existing web/apps business, state that in your pitch as well.
For the crowd-funding route too, give a quick intro of the company and existing business. That gives confidence and showcases your commitment towards your business. Then talk extensively about the game, because that's what will draw in the contributions. Good luck.!
Apr 3, 2014
I have worked for banks and investors tell them how much you are going to make what ther slice is and how much you need, and when will you pay it back or what sort of financing you looking for
then tell them about you how you in for the long haul and are the right jockey for the job
finally the vehichle to do it and how their investment is protected
finally exit strategy of you do not hit tragets and expectations
Apr 5, 2014
Thanks Shrutin. I definitely want to showcase my Web/apps development and marketing expertise to the investors but don't essentially want them to invest in that, but instead want their money to solely fund my game(s). I've launched several successful Digital products (Wordpress plugins to be precise) with huge success and have a loyal customer base from there but I'm not sure how would that help in this pitch for my Game biz or How could I include that in it?
Apr 3, 2014
Hi There. I would like to recommend a website to you which may help you immensely https://www.indiegogo.com/ Consider signing up and learn about this opportunity which could help you get your mobile game funded. Let me know how it works for you.
Apr 4, 2014
In tech space I believe the products should go first. Companies are generally pitched in "old school" business world. Products showcase your ability to deliver results and that your company is organized enough to deliver something tangible. Just an opinion though :) Good luck!
Apr 5, 2014
Definitely, the product. Once the game pitch is successful, the company will automatically get promoted.
Apr 7, 2014
Whichever route you choose make sure you and your team focus strongly in the presentation.
Investors tend to invest in people as much as they do in a great idea. Because a great idea with the wrong people won't go anywhere.
So don't forget to let your passion for your product/company and what you do show. Tell your why.
Apr 14, 2014
Hello,
I recommend you sign up for Stanford Technology Entrepreneurship. It is free and very very helpful. I just finished part 1 on April and part 2 will start in May.
This is the perfect course for what you are trying to do. You will learn how to present your idea to Angel Investors and Venture Capitals.
Elaine, you mentioned that the best way to pitch to investors is through the company. Do you feel that this approach is slightly biased from the entrepreneur's point of view and not considering the investor? In my experience, if the company is hollow (meaning no sales, literally just a company on paper), then investors will want to buy the app out from under you. Primarily because you tried to offer them something less than what was of real value to them. Has this been your experience?