During one of our class, we watched one of the episode of "Shark Tank" in order to learn how to pitch and negotiate with the investors of your company or product. When I watched the videos, I realized my last post about how to find investor for your game.
I said that finding a publisher is the essential part of the company. When I watched these videos, I understand how true that was. Developing a video game is very risky for the investors. You have to spend millions of dollars for years and there is not guarantee that you will sell as much as you want. In order to lower the risk, finding a publisher will be the best for lowering the risk. Investors will think more carefully because finding a publisher provide a guarantee for the investors.
Finding a publisher is not the only think that you have to do. You have to build a stable marketing plan. If no one knows about your game, you won't sell anything to anyone. Investors will look for a sound marketing plans too. Because like many products in the entertainment industry, a marketing plan will directly affect your sale numbers.
Of course organizing a budget and sale assumptions will be important too. Nevertheless, investors will look for these first. A good organized budget and realistic goals will improve your chance to finding a publisher and investor.
Also, pitching your project will be important. During your pitch, make sure that bring a lot of visuals to describe gameplay, characters, design and story of your game. Using visual tools for your pitch is much more effective to both publishers and investors. Also, it will make easier to understand than the text and your words.
The investors like Risa Cohen and Marc Jackson will definitely interested on these subjects on your business plan. Nevertheless, distribution, marketing, finance and presentation is the key elements for all products in the entertainment industry.
7/11/2011
Investors of the Video Games
Video Game Industry is a growing industry. A lot of many spend to create these marvelous games and many developers and publishers gain a lot of money from it. However, it is not easy to financing a game. Many publisher already receive a lot of business plan from many developers so they are very selective about who they are going to choose. This situation is very common in the entertainment industries namely movies and musics.
However, in video game industry it is impossible to fund a game without publishers. Because of their need of millions of dollars, high risk and length of the development process, many banks and investors don't even consider a video game business plan for investing.
However, some investors using completion bonds to invest a game. With completion bonds the lenders can spread out of risks and game publisher and developers gain money. This way many more ideas will receive green light.
This new venture system is using by the Risa Cohen who manages guarantee of completion for EFB. The other player of this game is Marc Jackson who is the managing director of Seahorn Capital Group in Los Angles. Let's learn about who they are in more detail.
Risa Cohen
Risa Cohen was born and raised in New York City, She started her career in entertainment as a Playwriter and Producer for theatre. In 1994 she started producing games and has since worked for Kalisto, Atari, Exmachina Image and Disney. In 2010, Risa Cohen Productions and European Film Bonds in Copenhagen, Denmark formed a joint venture to provide completion bond services for videogames and digital media productions In addition to her production work, Risa is a member of the faculty and president of the educational steering committee for the multimedia masters program at the Institute International Multimedia in Paris.
Marc Jackson
arc has 20 years entertainment industry experience in senior management roles in theme park development, new media and interactive entertainment, including 5 years as CEO of video game companies. Marc began his career working in project management for the Walt Disney Imagineering group on its Paris theme park, and pursued his MBA in Europe where he developed his passion for digital entertainment businesses. rom 1997 to 2001, Marc was CEO of LA-based console game developer Player 1 where he managed licensing and publishing partnerships with Sega, Midway, Interplay, and Universal – and successfully delivered eight Playstation and Nintendo console video game titles. In 2000 Marc began advising investors and media companies, and by 2002, Marc had become a pioneer and innovator of film-style production finance and risk management techniques applied to interactive entertainment and video games.
Ok we know who they are but they are not going to accept any offer they will receive. So we need to know what is important for creating business plans.
Best way to creating a business plan is focused on how are you going to take opportunity from the market and how are you going to distribute your games. Especially finding a decent distributer is very important for the investors. Other important factor is the sound marketing strategy. Without marketing you won't be able to sell your games. If you are going to decide to distribute yourself, then it is very hard to find an investors too unless you have a great understanding from markets, demands and a great marketing strategy. Also, the resumes of the development team will affect the investors too. Their past experiences and knowledge may charm the mind of the investors.
If you are going to look for investors for your games, good luck because you are going to need it. But if you careful about your marketing strategy and working with an experience crew then you will have a better chance to find an investor you need.
Sources:
1. http://brbent.com/team/marc-jackson/
2. http://www.gamasutra.com/view/feature/3254/writing_a_business_plan_for_.php
3. http://europeanfilmbonds.com/risacohen.html
4. http://venturebeat.com/2010/10/15/video-game-investors-seek-to-fund-games-via-film-financing-methods/
However, in video game industry it is impossible to fund a game without publishers. Because of their need of millions of dollars, high risk and length of the development process, many banks and investors don't even consider a video game business plan for investing.
However, some investors using completion bonds to invest a game. With completion bonds the lenders can spread out of risks and game publisher and developers gain money. This way many more ideas will receive green light.
This new venture system is using by the Risa Cohen who manages guarantee of completion for EFB. The other player of this game is Marc Jackson who is the managing director of Seahorn Capital Group in Los Angles. Let's learn about who they are in more detail.
Risa Cohen
Risa Cohen was born and raised in New York City, She started her career in entertainment as a Playwriter and Producer for theatre. In 1994 she started producing games and has since worked for Kalisto, Atari, Exmachina Image and Disney. In 2010, Risa Cohen Productions and European Film Bonds in Copenhagen, Denmark formed a joint venture to provide completion bond services for videogames and digital media productions In addition to her production work, Risa is a member of the faculty and president of the educational steering committee for the multimedia masters program at the Institute International Multimedia in Paris.
Marc Jackson
arc has 20 years entertainment industry experience in senior management roles in theme park development, new media and interactive entertainment, including 5 years as CEO of video game companies. Marc began his career working in project management for the Walt Disney Imagineering group on its Paris theme park, and pursued his MBA in Europe where he developed his passion for digital entertainment businesses. rom 1997 to 2001, Marc was CEO of LA-based console game developer Player 1 where he managed licensing and publishing partnerships with Sega, Midway, Interplay, and Universal – and successfully delivered eight Playstation and Nintendo console video game titles. In 2000 Marc began advising investors and media companies, and by 2002, Marc had become a pioneer and innovator of film-style production finance and risk management techniques applied to interactive entertainment and video games.
Ok we know who they are but they are not going to accept any offer they will receive. So we need to know what is important for creating business plans.
Best way to creating a business plan is focused on how are you going to take opportunity from the market and how are you going to distribute your games. Especially finding a decent distributer is very important for the investors. Other important factor is the sound marketing strategy. Without marketing you won't be able to sell your games. If you are going to decide to distribute yourself, then it is very hard to find an investors too unless you have a great understanding from markets, demands and a great marketing strategy. Also, the resumes of the development team will affect the investors too. Their past experiences and knowledge may charm the mind of the investors.
If you are going to look for investors for your games, good luck because you are going to need it. But if you careful about your marketing strategy and working with an experience crew then you will have a better chance to find an investor you need.
Sources:
1. http://brbent.com/team/marc-jackson/
2. http://www.gamasutra.com/view/feature/3254/writing_a_business_plan_for_.php
3. http://europeanfilmbonds.com/risacohen.html
4. http://venturebeat.com/2010/10/15/video-game-investors-seek-to-fund-games-via-film-financing-methods/
Subscribe to:
Posts (Atom)