There are two industries that make a ton of cash however they’re historically largely ignored by enterprise capital — films and gaming. That comes as a little bit of a shock to many: Enterprise capitalists are identified for his or her eager eye on high-growth alternatives, predominantly casting their lot with tech startups, healthcare improvements, and the following huge factor within the digital sphere. However Deadline studies that movies made $33.9 billion last year, and global gaming revenue was $184 billion, in keeping with Newzoo. Nonetheless, the proposition of investing in films introduces enterprise capitalists to a panorama far faraway from the calculable metrics of SaaS platforms or the comparatively predictable threat of biotech.

Gaming and flicks are extraordinarily hit and miss, and that’s the type of unpredictability that’s seldom embraced by conventional enterprise capital funding theses.

I’m at all times significantly inquisitive about pitch decks within the gaming trade, so when SuperScale threw its hat within the ring, I used to be excited. The corporate is promising to make advertising and marketing for video games simpler, and on condition that nice advertising and marketing is among the essential variations between an okay final result and a smash-hit success, it tickled my curiosity nerve in a most pleasant manner.

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Slides on this deck

The corporate submitted a 22-slide deck, however “particulars of consumers and buyer case research the place we didn’t get approval for distribution are redacted,” in keeping with the corporate.

  1. Cowl slide
  2. Downside slide
  3. Answer slide
  4. Macro market dimension prediction slide
  5. Market dimension prediction slide
  6. Market dimension slide (2027)
  7. Goal buyer slide
  8. Platform interstitial slide
  9. The way it works slide
  10.   Market segmentation slide
  11.   Enterprise mannequin slide
  12.   Case research slide
  13.   Aggressive panorama slide
  14.   Marketing strategy interstitial slide
  15.   5-year plan abstract slide
  16.   The Ask slide
  17.   Use of Funds abstract slide
  18.   Abstract slide
  19.   Workforce slide
  20.   Appendix interstitial slide
  21.   Firm historical past slide
  22.   Closing/contact slide

Three issues to like about SuperScale’s pitch deck

SuperScale has an extremely slick-looking deck that will get proper to the purpose. Twenty-two slides may appear to be too many (the optimum size for a slide deck is round 16 slides today), however there are some interstitial slides and an appendix on this one, and people don’t really matter.

Let’s check out among the issues that actually work.

Making your personal market

[Slide 5] It will actually catch the attention of traders. Picture Credit: SuperScale

Gaming is a large market, and traders don’t should be satisfied of that. The query, then, is the right way to get a slice of that very tasty digital pie. SuperScale is taking some fascinating leaps of religion right here: The numbers are projections for 2027, slightly than speaking in regards to the numbers in the present day. However this slide comes early within the deck; if SuperScale could make a strong argument for a way it is going to be a part of the machine that grows gaming by 10%, that’s very fascinating certainly.

It’s daring and brazen storytelling. After all, the corporate is now setting itself up for having to share a plan and present the receipts, nevertheless it’s a great way to get traders proper off the bat.

A brand new lease on life

[Slide 7] SuperScale guarantees to go after two markets. Picture Credit: SuperScale

As a video games optimization firm, SuperScale has an fascinating method, and this straightforward slide holds a sensible promise: What if we will massively enhance the profitability of a recreation that’s already on the market? SuperScale’s mannequin goals, partly, to offer these video games a brand new lease on life at a stage of the video games publishing cycle the place each greenback that is available in is mainly a bonus. The deck isn’t making an enormous deal out of this, however I can see that being a extremely highly effective gross sales method to video games studios — and if it’s profitable with legacy video games (at basically no threat), wouldn’t or not it’s good to combine SuperScale on new video games, too?

It’s extraordinarily good, and traders will be capable of see that, too.

That’s the way you do a abstract

Design and almost-unreadable textual content apart, the content material on this slide is nice:

[Slide 18] Hell sure. Picture Credit: SuperScale

I like a superb abstract slide. Give the traders all of the pondering and speaking factors they should get enthusiastic about an funding. It’s an amazing method.

Three issues that SuperScale may have improved

General, this is among the higher pitch decks I’ve seen, however there are some things that made me go “hmm.”

Wait, how huge is your group?

When an organization raises round $5 million, I usually count on a group of 10 to fifteen. This group slide got here as a little bit of a shock:

[Slide 19] That’s an enormous group. Picture Credit: SuperScale

Placing this slide on the finish of the deck makes me marvel in regards to the seriousness of this startup. If it has 5 enterprise models and 70+ group members, it throws the remainder of the deck out of whack. There’s an ask slide, however no strong use of funds. You possibly can’t maintain a 70-person group with out having important income. The corporate is spending a lot time speaking about 2027 and its five-year plans, but it completely glosses over how a lot cash it’s making.

There’s some information about income, however solely within the type of case research:

[Slide 12] Blink and also you’ll miss it, however this slide contains some essential enterprise metrics. Picture Credit: SuperScale

Did you see it? SuperScale made $6 million from EA, Zynga and Fingersoft. And an extra $1.5 million from NimbleBit.

That’s spectacular, nevertheless it’s a horrible manner of exhibiting off this stage of traction. A correct traction slide would show these numbers not as totals, however as income graphs that present how a lot and how briskly income is rising over time.

Why is SuperScale elevating cash?

It’s complicated why the corporate is elevating round $5 million when it’s making correct income numbers.

[Slide 16] What? Picture Credit: SuperScale

This slide makes virtually no sense in any respect. On slide 12, the corporate famous it had $7.5 million price of income from simply its case examine purchasers. What number of purchasers are there? We don’t know. How a lot income is there in complete? No thought. And what’s it planning on doing with the cash? Properly, there’s a slide for that:

[Slide 17] Elevating for a five-year runway? Picture Credit: SuperScale

This slide is nugatory. The corporate says it’s constructing an M&A machine, suggesting it’s planning to amass the rights to legacy video games and presumably develop them. That’s superior and all, however there must be a selected plan for that.

There’s additionally the inner inconsistencies right here: It says it wants $5 million to realize targets, however then says it’s going to have “observe on natural funding” via reinvesting earnings.

Within the M&An area, $5 million is sort of no cash in any respect, so now I’m very inquisitive about who the acquisition targets can be, and the way the corporate presumes these acquisitions will work towards its backside line.

Inform a coherent story!

SuperScale, on first read-through, appeared like such a implausible funding alternative, however as I began poking and prodding on the deck, it made much less and fewer sense. The corporate appears to need to purchase different firms (or is it video games?). It has 70 folks on employees, nevertheless it’s solely elevating $5 million. It doesn’t share its previous successes, nor how it’s planning to search out the long run success it wants.

I believe a a lot better manner of telling this story, general, can be to have an end-to-end story, instructed persistently:

  • We purchased recreation A for $B.
  • We invested $C into development infrastructure for the sport.
  • We invested $D into advertising and marketing for the sport.
  • Income for the sport went from $E to $F, after solely investing $C+D.
  • As you may see, we made revenue of $X on this mission, and we predict this playbook will work on video games which have this specific profile.
  • We need to construct a portfolio of 30 video games, which is why we’re elevating 30*($B+$C+$C), after which this turns into a self-sustainable enterprise with a repeatable playbook and enterprise mannequin.

That story would make sense to traders.

The total pitch deck

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