popular genre of video games is totally tanking on mobile
Gamers spend well over
1.3 billion hours on competitive real-time action gaming, but competitive real-time action games on the app stores have a hard time making a dent on the top 20 lists.
shackled to the freemium monetization model
Most developers, just
to survive, must choose between monetizing through advertising, which really only pays off for the top 1%, or the freemium model, aka "dullness for dollars".
be able to give gamers what they want?
Gamers have been denied
the excitement of their favorite kind of games, mostly because developers have been unable to monetize those kinds of games.
let's make it interesting
introducing Challenge Gaming
for the developer, it works like this...
Let's say you've developed this awesome competitive game called Soda Butt Smashers, and you want it to be part of Challenge Gaming.
You bring it to us, we love it, and we accept it for the Kydaemos platform.
for the gamer, it works like this...
Joe Alpha from Albequerque is on his lunch break. "Joe," he says to himself, "time to kick ass." It's time for Challenge Gaming!
He pulls out his phone. He launches Soda Butt Smashers. He makes a 25¢ challenge–meaning he puts up 25¢ himself–and we find him an opponent who's put up 25¢ too. The Challenge begins.
Thirty seconds later: boom. Joe wins. Joe takes the cash.
...and it all comes together with Kydaemos
Next, Joe plays two $1 challenges. Then three $5 challenges. He wins them all.
He's had a really fun time. He's up more than $15. And he's paid a small fee to Kydaemos on every game.
Kydaemos splits the fee with you. And your profit scales to the fun you've brought the world. It's simple. It's the way it should be.
More fun = more money.
Ain't that justice?
international from the word "去"
it's a small world, and America's even smaller
it's crazy to start farms in countries passing laws against chickens
Because it's skill-based, Challenge Gaming is legal in most of America. But Congress is kicking up dust. They're railing against internet wagering of every kind, and itching for a fight.
Who needs it? Not us.
We're thinking globally. Our first games launch in the UK. Our first expansion target is the broader EU.
it's an earth-sized pie–
all the slices are big
Our revenue goal before exit is $345M yearly. That might be hard to hit from just the EU. But not once we expand to Asia.
And Africa. And South America. And Australia. And–when it's time–America.
big piles of money
video game revenue is projected to reach $111 Billion by 2015
there's $36 Billion more in our addressable market–because of crossover appeal to gamblers
the mobile app market itself has had 52.4% year-to-year growth
Paul Graham of Y Combinator has a famous equation: startup = growth. His point is that a startup isn't just any business that needs funding.
A startup is a business that needs funding and has the potential for rapid scaling. We have crossover appeal to two huge market segments, and are in a space that has seen growth rates nothing short of astonishing. Kydaemos perfectly fits the definition.
Here's the thing: why hasn't anyone done this yet?
It's an obvious gold mine. It's been tried. On the desktop, on home consoles, on feature phones before smartphones. The riches remain untouched.
Why? It's actually pretty simple. It's not what's been tried, it's how.
Again and again, people try to do it like eBay.eBay's model is to provide a service, sign up tons of vendors, and leave the vendors in control of product.
It's a great business model. It's reasonable to think that would work in our sector. It never has.
Signing up tons of vendors means tolerating tons of mediocre games. We don't think that's the way to crack this nut. We think it takes the model of the Apple Store.
The Apple Store–the most profitable retail outlet in history–works this way: they establish a standard of excellence, they sell a narrow selection of premium products, and they exert complete control of customer experience.
Believe it or not, in our sector, this has never been tried.
We may know the reason. To sell a premium product, you have to know what a premium product is.You have to have firm opinions about what makes a great game. You have to say no to most games, yes to very few. And it's vital to have one or two games of your owntodemonstrate your standards.
It hasn't been done because most companies don't, won't, andcan't.
But Kydaemos's CEO is a veteran game developer. Kydaemos has firm opinions about what a great wagering game must be. And Kydaemos can demonstrateits standards because Kydaemos has made two games of its own for that purpose.
Kydaemos can exert complete control of customer experience.
None of our predecessors have done it. None of our current compeititors are doing it. None have even tried. And none have grabbed the riches.
We will. We have the vision for it.We are blasting forward.
Because we–you'll indulge us the reference–think different.
mind the exits
the mobile-gaming space is hot
over 30 mobile-game mergers and acquisitions were made in 2013, and the average amount paid was $1.16B
earnings-to-valuation ratios were around 3.5x in the acquisitions of Supercell and NaturalMotion
EA paid 10.5x for PopCap Games
seed investors in Bash Gaming saw 100x ROI
as shown, industry exits are 3.5x–10.5x
Kydaemos's annual revenue target is $345M
that adds up to a Kydaemos exit valuation around $1B–$3.6B
platform emergence cycles happen once a generation
the mobile-gaming platform is still in beginning stages
its future belongs to those who get in right now
Jesse Wonder Clark, CEO
LucasArts veteran with 20 years of game experience in all areas from QA to lead design. Experience ranging from big-name IP like Star Wars: Rebel Assault and Indiana Jones and the Fate of Atlantis to cult hits like Zombies Ate My Neighbors. Lead designer of adventure games for social gaming site Planet Cazmo.
Elena Tropp, COO
10 year career at major studios like Disney and 20th Century Fox, and internationally at AnimationLab in Israel, writing for film and television projects. Spearheaded international location search and solicited multiple countries’ bids for Kydaemos development.
Ezra Reinstein, GC
15 years of law practice at prominent firms and as head of his own firm. Work has included complex international transactions, contract negotiations, litigating high- stakes IP disputes, and founding a legal center at one of the nation’s oldest advocacy nonprofits. Graduate of Harvard College (with honors) and Harvard Law.
Patrick Mundy, CTO
20-year veteran of data processing world with deep experience in data warehousing, integration, business intelligence and analysis. Extensive experience with ETL and analytic projects in banking, investment and other financial arenas. Successfully managed software and database development teams with experience in both traditional waterfall and agile modes of application development.
Expert in computer technology innovation, operations automation and operating management. Managerial accounting experience at several Fortune 500 corporations. Co-founder of Telcentris, Inc. an innovator in cloud-based unified communications and VoIP solutions.
CEO, TellTale Games
Co-founded Telltale, Inc. in 2004 and established the company as a leader in digital publishing and episodic production. Recognized by Develop magazine as one of the top 25 people reshaping the games business.
Former Senior Software Manager, PaddyPower.com
Headed all software development and oversaw international teams and outside vendors for the biggest online betting brand in Ireland: PaddyPower.com Managed PaddyPower’s expansion to mobile devices.
Sales, Marketing, Distribution
New Media executive with 10+ years of experience in business development, product development and online marketing in the gaming sector. Previously GM for Yahoo! properties, VP of Business Development for Kaboose, VP of Product Marketing for Emerald Island at Fluid Entertainment and now Co-Founder and VP of Business Development at StreetOwl.
Sierra Maya Ventures
Amish has been an entrepreneur since the age of 25, when he started his first company in 1998. He’s a frequent guest on CNBC, Bloomberg and Fox News. He is a Founding Partner of Sierra Maya Ventures, ranked one of top 10 Angel/Seed Funds in the world, and he personally is the top Angel Investor in the state of NC in 2013.
Sierra Maya Ventures
A co-founder of multiple tech-focused companies, Eric has expertise with many forms of financing, from senior bank lending to mezzanine debt and equity. In the past year, Eric invested in several startup companies, and he recently sold his own company to a private equity firm.