Yearly Archives: 2013

Mobile and Asia drive games M&A over record $5B by mid-October 2013

The two articles below first appeared in the New York Times and Gamasutra on October 21st 2013

Asia, where mobile games flowered, extends its reach

New York Times October 21st 2013

TOKYO — When SoftBank, the Japanese telecommunications provider, announced last week that it had agreed to buy a 51 percent stake in a Finnish mobile game company for $1.5 billion, many people in both industries reacted with disbelief. Read more on Mobile and Asia drive games M&A over record $5B by mid-October 2013…

The 7 Habits Of Highly Effective Mobile Fundraisers

This article first appeared on VentureBeat.

It’s no secret that mobile Internet is disrupting technology markets, and according to McKinsey it could drive $trillions of economic value within a decade. Gartner forecasts that mobile apps revenue will grow 5x from $15B in 2012 to >$70B in 2016. So “thar’s gold in them thar hills.”

This is a huge opportunity, but it’s also a huge challenge. Even mobile app companies with millions of downloads can struggle to raise money in the current market (particularly mobile games, which currently generate ~3/4 of all mobile app revenues). Angels, accelerators, incubators and crowdfunding are great to get you started, but aren’t the solution for the “difficult” second album – Series A funding. The much talked about “Series A Crunch” (unfortunately not a breakfast cereal) means that there are >5x the number of unfunded early stage companies across industries today compared to 2008, and those make for tough odds even in a hot market.

So how do early stage mobile companies escape the Series A Crunch?

At Digi-Capital our deal flow is ~1,000 deals annually across America, Asia (China, Japan, South Korea) and Europe. Much of that comes from early stage mobile apps, mobile games and mobile technology companies, so we like to think we have a feel for the market. Our experience and pattern matching have guided us to focus on the 7 habits of highly effective mobile fundraisers:

Read more on The 7 Habits Of Highly Effective Mobile Fundraisers…

High growth Mobile and Asia drove games M&A to record $3.3B to Q3 2013

Digi-Capital has published the Q3 2013 Update of its Global Games Investment Review.

Commenting on the Review, Digi-Capital Founder Tim Merel said:

“It’s no secret that mobile Internet is disrupting technology markets, with Gartner forecasting that mobile apps revenue will grow 5x from $15B in 2012 to >$70B in 2016. With over 70% of global apps revenue from games in 2013, and forecasts that Asia will dominate global mobile/online games revenue (China 32%, South Korea 12%, Japan 10% by 2016F), mobile and Asia continue to drive games growth going forward.

Global mobile games/apps revenue ($B)

Read more on High growth Mobile and Asia drove games M&A to record $3.3B to Q3 2013…

Digi-Capital Global Games Investment Review 2013 – Q2 Update

Mobile has fundamentally disrupted the games market

Investment bank Digi-Capital has published the Q2 2013 Update to its Global Games Investment Review (free Executive Summary at www.digi-capital.com).

Commenting on the Review, Digi-Capital Founder Tim Merel said,

“Mobile has fundamentally disrupted the games market across sectors globally.

Mobile internet is the most disruptive technology today. Mobile internet could create up to $11 Trillion in value globally by 2025 (across all industries, not just games), built on a well developed mobile tech stack. Mobile internet connected devices, mobile broadband subscriptions, mobile data usage and mobile apps growth are driving disruption across all tech related markets. For games, the transition to free-to-play and communal gameplay is changing sector dynamics, delivering  up to 10x-20x revenue uplifts for market leaders.

ios/android (mobile/Tablet) Usage

Read more on Digi-Capital Global Games Investment Review 2013 – Q2 Update…

Digi-Capital Global Games Investment Review Q1 2013 Transaction Update

The Connected Games Investment Gap

Games investment bank Digi-Capital has published the Q1 2013 Update of its Global Games Investment Review.

Commenting on the Q1 2013 Update, Digi-Capital Managing Director Tim Merel said, “The top line is that there is a significant connected games investment gap, despite strong underlying growth, exits and returns. It’s something we’re looking at very closely.

As we anticipated, the games investment market showed clear signs of transition in Q1 2013. Connected games revenue continues to grow across mobile and online, with the highest growth in high engagement mobile/tablet games. The games investment market stabilised to levels similar to 2012 after last year’s dramatic decline, with mobile/tablet and enabling tech/gamification dominating. Games M&A was similarly robust compared to 2012’s record, with non-US acquirers accounting for 6 of the top 10 games M&As to date this year.

Read more on Digi-Capital Global Games Investment Review Q1 2013 Transaction Update…