Digital Capital co-founders Stewart Kosoy andTodd Tribell know all about developers looking for funding; they’ve been an audience to hundreds of pitches. Here they offer a wealth of advice on convincing potential investors
DEFINE YOUR FINANCIAL POTENTIAL Clearly define how your idea will generate money. Investors are interested in the bottom line, which is the prime reason for their potential participation in your idea. They are not patrons of the arts and do not consider you a charity. Explain precisely how your idea will earn them money and over what period of time. Do not suggest that your game will generate the same revenue as other top selling titles. It is very difficult to attract an investor if the only way for them to make a profit is to unseat the top of the sales charts.
BE OPEN AND FLEXIBLE Every investor understands that you have a vision. If your idea is truly interesting and if they are a good investor, they will want you to be vested in that vision. Know what you don’t know and be willing to share that with your investor so they can help you. Don’t forget the investor has their needs as well. Objectively listening to the reaction of an investor who might offer a different perspective can give you room to manoeuvre and to tweak your pitch, thus giving you an advantage. Listen to suggestions they have and see if they can help you improve your overall concept instead of holding on too tightly. Keep that dialogue open. It is appropriate
THE EXORBITANT costs of developing software on traditional platforms, combined with the explosion in the mobile-app market, has created a significant industry shift. Consequently, the emergence of an enormous mobile and social app-user base has fueled a new generation of publishers who cater to the independent developer. As a result, the requirements from both publishers and developers have rapidly changed. But one thing mission-critical to bringing software to the market hasn’t; the need for finance. Outside firms are becoming more
Developers must clearly define how their idea will generate revenue, as investors are primarily interested in the game’s bottom line, say Digital Capital co-founders Stewart Kosoy (middle) and Todd Tribell (above)
prominent and are making financing available in a variety of forms. The requests for those funds are equally as diverse. As you can imagine, we have heard a pitch or two; actually hundreds of them. Here are some basic axioms to presenting your ideas and concepts that could significantly increase the likelihood of securing both the funding and support you need in order to bring your idea to market.
KNOW WHO YOU ARE PITCHING TO Find a financier who you believe is right for you and your idea; then make an appointment. Don’t show up unannounced. Tailor your presentation to the person you are pitching. There is a difference between a producer, a traditional publisher or angel investor. Each of these decision makers will have a different set of primary requirements that need to be satisfied.
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BE SUCCINCT Everyone knows the old adage ‘time is money’. Many people you will pitch to hear hundreds of ideas each year. Yours should prominently stand out, as it will undoubtedly be one of many. Don’t get tied up in the details of game design and other minutia. When you see a glazed look come over their eyes, you’ve lost them.
It is very difficult to attract an investor if
the only way for them to make a profit is to unseat the top of the sales charts.
Kosoy & Tribell, Digital Capital
Present your concept in six-to-nine bullet points; why it is unique; and how you envision successfully generating revenue. This is the fastest step to securing a more in-depth follow-up meeting.
KNOW YOUR COMPETITION Knowing you have done your homework gives an investor confidence. Being able to discuss the competition; your strengths and weaknesses; as well as why your idea trumps others on the market is paramount.
not to always agree with an investor’s comment or response, but don’t try to change their opinion by being confrontational and getting into an argument. Leave your ego at home. Investors are
looking for partners; and not high maintenance ones. Even if you have delivered hit after hit, when you are in front of an investor, you need their money. Investors are interested in sound business minded ideas and are acutely aware that even the biggest stars can fail. Be humble and be prepared to show what you have done and why your team is right for the job. Don’t present yourself as being too big. Investors could be left wondering why you need their investment.
DON’T BE UNREASONABLE Do not ask for unreasonable terms. Most investors have a fairly good idea of the costs and time required to create software. Be clear and realistic in your financial projections. In today’s world of conservative economics, don’t look for someone to pay for your new Porsche while you are delivering your project. That opportunity will appropriately arise with your first dividend. www.digitalcapital.ch
Stewart Kosoy and Todd Tribell co-founded Digital Capital. The company provides partnership opportunities, management and advisory services within the digital entertainment industry, as well as funding and matchmaking developers with investors.