Securing Investment for Your Mobile Project: A Comprehensive Guide

Every company is deeply invested in its funding, whether for developing a new game, expanding a studio, or turning a gaming passion into a successful business. Without resources, none of these endeavors would be possible. Even the most promising ideas require a compelling pitch, a high-quality presentation, and a relevant offer to secure funding from investors. This guide provides detailed explanations and reasons for preparing a good investor pitch, based on a conference lecture at WN Dev Day Canada 2022. Before applying for funding, it's essential to understand the purpose of the funding and how it will be used. This clarity helps in determining the deal format and finding the right partner. There are several funding options, including product funding without investing in the company, development funding that can be converted into company shares, development funding plus investment in the company, and company investment. Each option has its distinct characteristics and implications. For instance, product funding typically involves allocating money to a specific project with strict KPIs and milestones, and the refund comes from the developer's share of the project's income. In contrast, development funding that can be converted into company shares offers more flexibility, as it allows the company to be freed from the obligation to pay back the debt from the project's income. When considering investment, it's crucial to ensure that all accounting and legal issues are settled. This may involve creating a new legal entity or undergoing an audit stage, especially if the company has a history of income and spending. Establishing clear goals before applying for investment is also vital. Questions such as whether to handle the full cycle from development to publishing, the genres to work with, and what to expect from a partner can help in building a relevant shortlist of potential investors and developing a good pitch. A clear understanding of business needs and wants increases the chances of finding a reliable partner. The process of applying for investment involves several steps, including research, preparing materials, and creating a good application. Research is a critical step that involves looking into companies offering investment and funding, using the answers to key questions to filter potential partners. It's also important to consider the companies that potential partners have previously invested in and to seek feedback from studios about their experiences with investors. Preparing the right materials is essential, including a presentation about the company and project information. The presentation should share important facts about the studio, such as its foundation date, registration country, field of expertise, technical stack, and released projects. Project information should include details about the genre, art style, setting, USP, target audience, key gameplay or art references, concept or GDD, competitors and market analysis, roadmap, and target KPIs. For published projects, product and marketing metrics should be indicated, including retention rates, ARPU, ARPPU, and ads ARPU. When creating a good application, it's important to talk briefly about oneself, highlight the metrics of new or old projects, and mention convenient slots for meetings. A template can be used to make things easier, and attachments such as presentations about the team and project should be included. During the call stage, developers may struggle to communicate their needs clearly. Formulating the request as clearly as possible is crucial to increase the chances of finding the right partner. Investors evaluate studios based on their own criteria, which include the founders' background, passion for ideas, and ability to assess the market, prospects, and risks. The team's dynamics, experience, and previous products are also considered. Prospects for the team are a key factor that investors consider, and being prepared to discuss goals and how to make the collaboration beneficial is essential. Remember, not all products may be suitable for an investor, so communicating needs and goals early on and clearly is vital to avoid wasting time. Additional materials may be requested during the first meeting, and it's recommended to prepare all documents in advance to save time. Investors should have documents such as investment treaties, convertible loan agreements, and joint development or publishing agreements at hand. Asking the investor to compose a detailed work roadmap, including types of tests and when they are expected, is also important. Further steps may vary greatly depending on the parties involved and the types of deals being discussed. Completing the guide can greatly increase the chances of getting funding, and a correct and comprehensive approach will help come across as confident professionals. Lastly, starting to look for partners in advance is crucial, as good market research takes time, and several weeks will be spent getting acquainted with potential partners. Preparing contracts can also take months, even with drafts at hand. Key takeaways include starting the pre-production process early, as it is a solid base for success, and choosing the funding type and suitable options for future agreements. Researching the market to find companies that provide funding and studios they have invested in, requesting feedback from developers, and analyzing the results of their collaboration are also essential. Creating a high-quality presentation and writing a good intro that gets across all the information about oneself and the product are vital. Being prepared to allow direct access to traffic trackers and share company financial information under NDA is also necessary. Finally, do not grab the first opportunity; instead, talk to different potential partners and choose the best option suitable for you and your company.