Former top manager of the marketing companies Yeahmobi and glispa Michael Levin launched Betastage Capital. This is a venture fund that is ready to invest in mobile games from $ 50 thousand to $ 1 million.
The Foundation is primarily looking for casual mobile games with an advertising monetization model that:
- “able to withstand market competition“;
- “they are at the stage when the necessary metrics are available and it is already possible to track the dynamics of the project.”
When choosing a project, the investor will look at:
- dynamics of growth of new users;
- retention;
- length of the game session;
- generated profit and revenue.
Important: “The venture Fund is ready to take only those projects that can show the dynamics of revenue. The priority will be products whose monthly turnover is more than $3,000.” As for the amount of funding, it “will be calculated as a multiplier of monthly or annual revenue.”
The fund states that when concluding a contract, they expect the transaction to pay off in 2-3 years. If the project proves itself, the investor will be ready to carry out an additional round.
The models of partnership and support for the conclusion of a contract may be different. Now the firm identifies three scenarios:
- for indie projects with one game — acquisition of a controlling stake;
- for studios with a strong team and a “clear concept for creating new products” — investing with the acquisition of a smaller stake in the company;
- Betastage Capital is also ready to consider a full acquisition of the project, but this scenario is not a priority.
The volume of Betastage Capital is $5 million. At the stage of the second round, he plans to raise an additional $ 20 million. The Fund is in strategic partnership with Rocket10 and Bidease, whose management teams are on its board of directors.
Also on the topic:
- “We are not looking for studios, we are looking for products”: ZiMAD about the puzzle market and the search for games to buyIn 2019, Playrix spent $100 million to buy and invest studios
- Managers Mail.Ru Group left the company to run hyper-casual games
- Is there any news?
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