AmericanStartups

Author name: William Smith

How game developers can attract gamers and investors
Ideas, Keys to success

How game developers can attract gamers and investors

The gaming industry has shown exponential growth in the last few years. According to an estimate, there are more than 2.6 billion gamers worldwide wherein 1995, there were only 100 million. The landscape of game development has changed in the last 10 years especially after the rise of smartphone games. According to eMarketer, there are more than 2 billion smartphone users in the world and most of them play video games to kill time. We have seen many success stories where a group of 4-5 developers made some great video games. We did our research and found some points which were common among all successful games. Unique Idea Your game should have a unique idea. You can take the examples of many great games like Flappy Bird, Clash of Clans, Boom Dots etc., and all these games had a unique idea. However, when we say “unique idea” we don’t mean that it should be complicated. For example, in Boom Dot, all you have to hit the ball with another ball and this game has over 1 million downloads on Play Store. Similarly, you can take the example of the Flappy Bird, which was earning $50,000 per day on ad revenue. So try to find the unique idea, as it will attract the investors and gamers. First mover Advantage First mover advantage is one of the key factors in the success of any game. If you have any idea you should execute it, but you should follow a discrete approach to test your idea first. For example, Clash of Clans was first released in Canada and when gamers in Canada had shown interest in the game, then Supercell released the game in the US and within 3 months,  Clash of Clans became #1 top grossing game in the US. After the success of Clash of Clans, many developers tried to replicate the concept of Clash of Clans and now we have tons of duplicates on Playstore. Business Model A business model is also one of the major aspects which can attract the investors. If your business model is not good, investors will not have the return on their investment and it would be considered a bad investment. If you look at the famous games you would notice that all of them follow different business models. For example, in some games, you see the ads and you also get some game’s resources e.g. coins etc. as a reward. Similarly, some games offer in-store purchases, for example, in temple run, you can continue your run using the diamonds which can be bought with real money. Advertise your game If you have developed your game independently and looking for investors and gamers then you should advertise it. There are multiple ways to do it, the first and most effective way which is kind of free is to make your game perfect. Google Play Store team select the multiple games if they are up to the mark and feature them in their editor’s choice and if your game can make it to that list you can easily attract a number of potential gamers and investors. Another method is to strategically advertise your game, the sites like LinkedIn and Facebook offer multiple options like the targeted audience, a region for showing Ads which you can use to attract the gamers and investors. Scalability Scalability is another big factor which can attract both gamers and investors. If your game is not scalable then chances are the players will get bored and eventually leave the game. If your game is scalable, investors will be more than happy to invest their money in your game. Now, you which features & Attributes your game should have to attract the gamers and investors, now let’s discuss Clash of Clans case study. Clash of Clans is a strategy game which was released by Supercell in 2012. Supercell itself was founded in 2010 with the aim to provide the games which gamers should play for years. Supercell developed many games to achieve their goal but they were not satisfied with their games and they killed many games including Gunshine, Pets vs. Orcs and Tower. In 2011, Supercell released the Hay Day which was a farming game and it got a good response from the gaming community. Following the success of Hay Day, Supercell released the beta version of Clash of Clans and it was released in Canada with the codename “Magic” and after few months Clash of Clans was released worldwide in August 2012. The Business model of Clash of Clans is free to play however players can buy the gems using real money and then gems can be used to buy the other resources like gold, elixir and Dark Elixir. We did our math and found that if a player decides to instantly upgrade his Townhall using gems, he would have to spend whopping 22 thousand USD to upgrade the Townhall to the max level. Clash of Clans business model is effective and that is the reason why the company enjoyed millions of dollars as profit in the last 5 years. In the year 2013 to 2015, the company’s revenue increased by 562%, the company earned more than 1.5 billion euros as revenue. In 2015m the company revenue increased by 36% and profit by 60% and in the same year company bought shares from its employees for 114 million euros. At the end of 2017, the company was earning around 5 million USD per day. If we take a look at the Clash of Clans Idea, it is very unique and the reason behind its success is the dedication of its developers. The company killed around 14 games before the Clash of Clans as those games weren’t engaging enough. Another reason behind the success of Clash of Clans is its unique clan system. In the game, you can join a clan and make new friends or you can connect your Facebook with the game and add your friends to your Clash of

5 ways to get noticed by venture capitalists
Ideas, Keys to success

5 ways to get noticed by venture capitalists

Venture capitalists are people who will invest money into a business venture; often for a startup or company expansion. Knowing how to get a venture capitalist’s attention is an art – and could be what separates you from your ambitions. Here are five tips to help you get that all-important ‘yes’. 1. Have as much set up as possible Before arranging the pitch, you should have as much of the groundwork of your business laid as possible. Is your website up and running, or the domain at least purchased? Are your social media channels optimized and sending out content, or at least reserved? Do you have a product prototype to showcase? Your venture capitalist will want to see proactivity as well as a tangible idea. 2. Keep your initial email short, sweet and entirely to the point Many venture capitalist companies will receive lots of pitches every day. Save yourself the man-hours of putting together 100-page case studies or incredible video pitches; these will not be read/seen. Instead, focus on crafting an email that can be digested easily, understood fully and excite your venture capitalist enough to invite you in. The subject line needs to be instantly engaging to stand out. For the email body content use the following four questions as a guide, writing a paragraph per answer. What does your company do? What problem are you solving? What’s special about your product/marketing/expertise etc. (i.e. what are you selling and why do we want to invest in it)? Who are you? The case studies, presentations, videos are only important for the actual interview itself. 3. Get an introduction In order to get an introduction, you should consider a few key things: Is the venture capitalist you are approaching right for you? Is there someone who can help you get a pitch? Do you have great references? There are lots of venture capitalist organizations out there, many who have a preference for the market they invest in. Do your research to see which ones fit your product and business the best. There is no point wasting time on the unlikelier ones. The time old adage of “it’s not what you know but who” can often hold very true. Use your contacts to get your product and pitch in front of the right people. As well as this, you should have some great references lined up, especially customer ones. 4. Have your expectations charted A base expectation from a venture capitalist looking to invest in you is a 10 times return on their initial investment, within seven years. If you can maintain this level of growth you will need to prove it. If you cannot, then venture capitalism is very unlikely for you. 5. Highlight what makes you unique The most obvious, but often negated, a thing to put across is why is your business unique? Originality is a powerful motivator for venture capitalists. If you can prove your expertise and answer the “hard questions” you are likely to make a much larger impact. Anticipate and prepare for questions like: Why does your business need to exist? Why you? Why now? What makes you unique? Share your story with us here!

How an American startup can have an ICO
ICO

How an American startup can have an ICO

Simply put, an ICO is an initial coin offering and basically, a fundraising mechanism wherein new projects sell their crypto tokens in exchange for bitcoin and ether. Clearly, ICOs are a new phenomenon in the cryptocurrency world but have quickly dominated the blockchain community. Now, while some perceive ICO projects as some unregulated securities that let founders raise an amount of capital which is considered unjustified, others believe it is yet an innovation in the traditional venture-funding model. For this reason, the U.S. Securities and Exchange Commission (SEC) has reached a decision concerning the status of tokens issued in the ICO which has inevitably forced a lot of projects and investors to do a re-examining of the funding models that abound in the numerous ICOs. Moreover, the recent SEC’s decision has been effective in clearing up some of the gray areas of ICOs. Thus, startups are now more often on the lookout for good opportunities and the underlying point or effort is to attract investors that are similarly searching for the next big cryptocurrency score. Regardless, because several millions of dollars have been spent on ICOs in the last couple of months, there is no slowdown whatsoever in sight. As such, because a lot of startups are lately considering the benefits of an ICO, they are demanded to know the following about ICOs: That ICOs represent a different approach, that is maintaining the right frame of mind That competition in the market is fierce and That communication is key Therefore, for an American startup to have an ICO, the following are required of such: Like a sore thumb, ICOs stick out on a number of the world’s social media platforms and financial markets. In fact, an average startup has a lot of expectations in making some fortunes and thanks to the rapid growth experienced and enjoyed by the subject, ICOs have truly come to stay. Interestingly, these markets cut across local, national and international phases. Hence, no matter the type of startup that you are, it becomes very vital to understand and correctly answer certain questions that revolve around the market of ICOs and its survival as such. These questions are best answered when you consider these two set of groups: Main Street Investors Market Professionals As a startup with an eye on immediate or long-term success, you should incorporate the concerns of investors into your concept. Better put, let investors know that no ICOs whatsoever have been registered with the SEC neither has the SEC approved any ETFs (exchange-traded products) for listing and trading. That means if you are told otherwise, you should be careful. The reason is that often, SEC has encouraged investors to ask good questions and demand appropriate answers. You thus have a responsibility to meet in that regard as a startup and entrepreneur. On the other hand, since ICOs are ways for entrepreneurs to raise fund especially for innovative projects, it is expected of you as a startup to include necessary disclosures, processes and investor protections as required by the US securities laws in your ICO offerings. Fundamentally, when a security is being offered by an entrepreneur, every securities law must be duly followed. In the light of this, market professionals with securities, lawyers, consultants, and accountants inclusive are to follow closely. In addition, before you will be able to sell securities, you require a license, which investors are in fact encouraged to look out for. As a sum, you should be able to either demonstrate to the general public that the currency or product you are offering is not a security or better still exercise adequate compliance with every registration and requirements under securities laws that apply. Share your story with us here!

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