Fundraising for VR Gaming Studios | Jikhan Jung

JikhanJungCEO@SubdreamStudios,Inc.

FundraisingforVRGamingStudio

Disclaimer:

Thiswillbetotallybasedonthepersonnelexperiencefromthelatestfundraisingexperience,andfocusonearlystageofseedrounding.

Eachcasewillbedifferent.

1.IntroductionofSubdreamStudios/JikhanJung

2.Experiencetoshare

3.Databasetoshare

TableofContents

Founder&CEOofSubdreamStudios, Inc.- VRCEO@COPOPLNI(ContinuetoSubdream)- Mobile– VRExecutiveProducer@Kabam(AcquiredbyNetmarblein2016)- MobileFounderCEO@Gala-Net(AcquiredbyWebzenin2013)- PC

Jikhan Jung

Only Seed round, and that’s it

Title LaunchDate Downloads Highlights

April28,2016 ~50K

• Vive (OculusTouchversionindevelopment)• 2nd highestplaytimeforSteamVRgames(Link)• Featuredonmajormedia(Venturebeat,Upload)• 20+VRArcadePartnership

August12,2016 ~40K

• Oculus&GearVRMulti-platformrelease• ~10%ofRevenuefromIn-AppPurchases• FeaturedonOculus&GearVRstore2times

October19,2016 ~0.8K

• Vive• 100%positiveuserreviews• Narrative-drivenSingle-PlayerAction-adventureGame

E x p l o r i n g G a m e D e v e l o pm e n t a c r o s s D i v e r s e G e n r e s a n d b o t h S i n g l e - p l a y e r a n d M u l t i - p l a y e r

COLOPLNIGames

20154Q 20161Q 20162Q 20163Q 20164Q 20171Q

Nov2015Releaseof“SlotTubParty”

Aug2016

TeambeganresearchingVirtualRealitytechnologyandgames

BegandevelopmentofCyberpongVR

Feb2016 Apr2016ReleasedCyberpongVRforHTCVive

Releaseof“Longbeard”

Oct2016

SubsidiaryofCOLOPL->SpinningOff->TypicalSiliconValleyStart-up

Closed$1M,andanother150Kisontheway.(Total4investors)

Timeline

ApprovalfromCOLOPLboardonmakingVRgames

ApprovalfromCOLOPLboardon“SpinOut”

Feb2016 Aug2016

Findinginvestors

Nov2016

Spinoffnotworking,QuittingCOLOPL

Jan192017

Findinginvestors

StrtingSubdreamStudios

Subdream Studios,Inc.

OurBlubs,

"SubdreamissocialVRgamingstudiolocatedinSanMateo,CA,foundedbyseriealgamingentrepreneurJikhanJung.

Teamhasreleased3VRgamesthisyearatCOLOPLNI,~100Kdownloadswithmeaningfulrevenue.

Subdreamisgoingtofigureoutwhatbestsocialgamingexperience isinVR”

JIKHANJUNGCEO/Producer

MICHAELLOPEZSr.Engineer

FOUNDINGTEAM

[email protected],SanMateo,CA94402

ABOUTUS

SubdreamStudiosaimingtobebiggestsocialVRGamingStudiotargetedforbothVRArcadesandHomemarket.

Coreteam@SubdreamStudioswasatCOLOPLNI,USsubsidiaryofaleadingJapaneseGameDeveloperandPublisher,COLOPL.In2015,studioreleased2mobiletitles, and3VRtitles in2016.CyberpongVR,SlotTubParty,andTheRiseoftheCaptainLongbeard.

Buildingonthesuccess ofitsfirstthreegames,SubdreamStudios willbegindeveloping thefirsteverplatformforSocialVRGaming.Theplatformbringsplayerstogetherinalobbywheretheycanchallengeeachotherin2-4personmultiplayerVRgames.Asimple PCinterfacecanbeusedtoquickly setupmatches,makingiteasyforVRArcadeoperatorstoprovide theirguestswiththebestexperience.

#2CyberpongVR is

nominate2ndlongestplayedgameperowner

Link

~100KdownloadsmostlyfromHigh-end

VR

~90KTotalRevenue

Jikhanisaserialentrepreneur,founderandex-CEOofGala-Net,firstfree-to-playgamingplatformgPotatoinwesternmarket,successful M&Aexitin2013

Raising$2MM

7MValuationCap20%Discount

SAFEE

Currently$1.15M

Closed/Commited

TargetclosingdateMarch2017

24monthrunSubdreamPlatform

V1.0+5multiplayerVR

Games

FukutaKanjiArtDirector

KhoiLeProgrammer/SocialMedia

Subdream Studios,Inc.

Status Owner Player LapsetimeJoin Jikhan 2/4 1:04Playing Guest1 2/2 5:05Spectate Jeff 2/4 2:05Private Mike 1/2 1:07Join Russ 1/4 0:20Join Jen 1/4 1:02

C R E AT E NEW PLAY S I NG L E


2.Experiencetoshare

3.Databasetoshare

TableofContents

Canweraise?

Possibilitythatyoucanraisefromthegoodinvestors

(1)Founder– Exitbefore(oranythingrelevanttobeappealed)90%

(2)Team– ExperiencedinVR(oranythingrelevant?)8%

(2)Product– Hitinthemarket?2%

Whattoraise?

SAFE ConvertibleNote SeriesA

ValuationCap ValuationCap Pre,PostValuation

DiscountRate DiscountRate Maxamounttoraise

TermtoConvert Liquidationpreference

Interestrate Anti-dilution

Rightoffirstoffer

Co-Salesright

Drag-along

BoardofDirector

FounderStock

VotingRight

SAFE>ConvertibleNote>SeriesA

SAFEisinventedfromtheYCombinator,verysimple,oneform,onlynegotiateValuationCap,DiscountRate

Fromwhomtoraise?

Whyfundraise?

Capital(90%)+Alpha(10%)Alpha:Nextround(80%),Network(15%),Advise(5%)

Capital:VRislongwaytogo.18+monthrunratetobebetter.Otherwaytogo:GrantsfromHMDcompany,governmentproject,workforhire,projectfinancing,Licensingcontract,crowdfunding.

NextRound:Unlessyouhaveabighittosustainyourgrowth,nextthingisanotherfundraising.

(1)Possibilityofleadingnextround(2)Exitexperience

Anydifferencebycountry?

U.S.– SiliconValley:Unwillingnessoninvestingingaming(HitDriven)

U.S.– LosAngeles:Willingnessoninvestingingaming/Contents

Korea–:Noreplymeansnointerest:Evenyesmightnotmeansyesuntilyouclose.

Japan–:Clearonreaction:Yesmeansyes:Prettyfastdecision

China–:VRinterestiscalmingdown

Howtoapproachtoinvestors

(1)BestifyouhavebeenbuildingtherelationshipwiththembeforeyourstartupDeNA,GenesiaVentures

(2)Introofyoursuccessfulentrepreneur friends

(3)IntroofotherVCs(TheyknowwhichVRsarelooking)CognitiveInvestment

#Makingthemtoapproachtoyou!

Notagoodidea(1)RelyonyourBDperson(Iclosed0frommyBDperson’snetwork)(2)Slowonresponse. (But,mightbesometimesgoodtomakethemtowaitforyourdecision,givingthemimpressionyouareselective?)

Valuation?

DependFounder(s)/Team/Games

NoGameonthemarketyet(3~$7MCap,Seed)

Gameinthemarket,nohityet(5~10MCap,Seed)

Gamehit(15M~pre,SeriesA)

(1) Funding

OwnDBofInvestors

Keepontrack…


2.Experiencetoshare

3.Databasetoshare

TableofContents

SiliconValley!

19ExceptfortheTechstar,Qualcommventures,allinsiliconVallley

Middle2016wasmosthotandabitslowingdown?

OverallNumberofinvestmentslowingdown?

(1) Funding

21

Ifyouaresmall,acceleratorfirst?

SiliconValley(1)HTCViveX(SF,Busan,China,Taiwanetc):$100M.

:Typicallyinvest~$150KConvertibleNote+~6%commonstock.

(2)BoostVC(SanMateo):$6.6M

(3)FrontierTechnologyVentures(SanFrancisco):$21.03M:UsedtobeRothenberg,Riverprogram,but…

ChinaYouzu:UCCVR:ShanghaiJapanGumi:TokyoVRStartup:TokyoKoreaYJM:SeoulVRStartup:Seoul

Superventures :AR:$10M

VRFocusedInvestors- Accelerator

(1) Funding1.COLOPLVRFund(Tokyobased,investingglobal):$100M(FOVE,Nitero,VRbase,Sliver,OwlchemyLabsetc):Shintaro,Yoda

2.TheVRFund(SanFranciscobased,investingmainlyU.S.):$50M(AgainstGravity,8i,Immservetc):Marco,Tipatat.

3.PresenceCapital(SanFranciscobased,investingmainlyU.S.):$10M(BaobabStudios,Uploadvr,etc):Amit

4.GREEVRCapital(SanFranciscobased,investingmainlyU.S.):$12M(Vrchat,etc):Teppei

5.MetaverseVC(SanFranciscobased,investingmainlyU.S.):$4M:Don

VRFocusedInvestors

(1) Funding

AsianCountries

Korea:Notmuchglobalefforts.KCubeVentures/YJMGames/KIP/CognitiveInvestment/Altos

Japan:VeryActiveonglobalefforts.COLOPL/Gumi/GREE/DeNA

China:AbithardtoinvesttoU.S.(anyothercountriestoo)Youzu/Shunwang/CRCM/legendary/Sparkland/WestSummitCapital/Xyspace/Raine

KeepInTouch!

Subdream StudiosInc.

Jikhan Jung,FounderandCEO

[email protected]

+1(408)646-9806

Fundraising for VR Gaming Studios | Jikhan Jung

Technology

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