Prepare to Join the App Millionaires Club | Martin Macmillan
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Transcript of Prepare to Join the App Millionaires Club | Martin Macmillan
PREPARE TO JOIN THE APP MILLIONAIRES CLUB CASUAL CONNECT SINGAPORE 2016
MARTIN MACMILLAN, CEO
Prepare to Join the App Millionaires Club 2
WHO ARE WE?
Pollen VC is a FinTech company which is disrupting
payments in the app economy with a new data driven
lending model
We offer app and game developers access to an
ecosystem of services which enable them to accelerate
growth
We offer a new type of flexible and non-dilutive
financing for developers
Offices in London, SF, Amsterdam and Helsinki
3
WHAT DO WE DO?
Early access to funds
Funding marketing spend
Unbiased Guidance - Pollen360
We give app developers early access to revenues they’ve earned
from the app stores, so they can rapidly reinvest in the resources
they need to grow their business faster
Prepare to Join the App Millionaires Club
4
THE OPPORTUNITY: PLATFORMS ONLY PAY OUT REVENUE UP TO 60+ DAYS AFTER YOU’VE EARNED IT.
LAUNCH
You’re earning money from day 1
This is your moneytrapped in the payment system
Platforms release your cash…
Prepare to Join the App Millionaires Club
THE MILLIONAIRES INDEX
AUTHORSHIP AND DATE / VERSIONING INFO
AUTHORSHIP AND DATE / VERSIONING INFO
AUTHORSHIP AND DATE / VERSIONING INFO
AUTHORSHIP AND DATE / VERSIONING INFO
10
Everyone knows the stories about a few apps that go viral
with no promotion.
For the 99.9% of all other apps launched, it’s necessary to
spend to acquire users.
THE REALITY IS THAT YOU NEED TO SUPPORT YOUR APP WITH PAID UA
Prepare to Join the App Millionaires Club
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THE USER ACQUISITION CONUNDRUM
$2$1
Prepare to Join the App Millionaires Club
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THE USER ACQUISITION CONUNDRUM
50c$1
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THE USER ACQUISITION CONUNDRUM
Unless you have worked out an ROI positive way to spend money
on paid UA, no amount of VC or external investment will get you
the result you need.
FACT
Prepare to Join the App Millionaires Club
Prepare to Join the App Millionaires Club 14
LAUNCH SCALE OPTIMISE
MAJOR CASH FLOW EVENTS
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THE IMPACT OF CASH ON UA
• $1.50 LTV [365 day max]
• $1.00 CPI
• 5,000 Installs/Day
Assumptions:
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LTV PROFILE
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60
1 11
21
31
41
51
61
71
81
91
101
111
121
131
141
151
161
171
181
191
201
211
221
231
241
251
261
271
281
291
301
311
321
331
341
351
361
DaysfromLaunch
ExampleLTVCurve
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PLATFORM REVENUE PAYMENTSP
aym
ents
$0
$40,000
$80,000
$120,000
$160,000
$200,000
Week After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
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NET CASH POSITIONN
et C
ash
Po
sitio
n
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Cash Position
first becomes
Positive
First App Store
payment hits bank
account
Spending $5,000/
day on ads
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USING UNPAID REVENUEN
et C
ash
Po
sitio
n
-$400,000
-$320,000
-$240,000
-$160,000
-$80,000
$0
$80,000
$160,000
$240,000
$320,000
$400,000
Weeks After Launch
0 4 8 12 16 20 24 28 32 36 40 44 48 52
Net Position Net Position w Revenue Recycling
Recycling revenue allows you
to stay cash flow positive with a
fraction of the starting budget.
Or leverage up and do much
more UA with the same budget.
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HOW TO FINANCE GROWTH
VENTURE FUNDING
Product
Team
Acquisitions
DEBT FUNDING
Marketing/Paid User
Acquisition
Financing projected
cash flow
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HOW DO DEVELOPERS BENEFIT?
Do more with your money at an earlier stage
Keep control of your business
Remove ad network credit hassles
Unbiased training to maximise your return on UA
Prepare to Join the App Millionaires Club
CASE STUDY: PIXONIC
Top 100 Grossing Game on iOS
Founder: Philipp Gladkov
Offices: Berlin, Moscow
Company Size: 55
Backed By: Kite Ventures, TA Associates
Known For: Walking War Robots (iOS + Android)
Prepare to Join the App Millionaires Club
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“Working with Pollen made it possible to increase
the revenue of our game Walking War Robots
sixfold and to double the size of our team. I think
that Pollen offers a great opportunity to game
studios that require a boost in development.” -
Philipp Gladkov, CEO, Pixonic
Launch Budget: $100,000
Reinvestment Rate: 40-85% weekly
REINVESTING REVENUE IN GROWTH
• Reinvested revenue 30-67 days earlier
• With an identical cash position, with Pollen Walking
War Robots Revenue to 3x more over 10 months
$0
$8,000
$16,000
$24,000
$32,000
$40,000
1 2 3 4 5 6 7 8 9 10
With Pollen Without Pollen
*indexed figures
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Reinvest directly
into advertising
Acquire more users
faster
Draw down earnings
on a daily basis
A NEW WAY…