The Funding Gap

THE FUNDING GAPINTERFACE LONDON - MAY 2015

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Everyone knows the stories about a few apps that just go viral with no promotion. For the 99.9% of all other apps launched, it’s necessary to spend to acquire users…

DEVELOPERS NEED TO SUPPORT APP AND GAME LAUNCHES WITH PAID UA

Pollen VC - Interface 2015

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THE FUNDING GAP…

LAUNCH You’re earning money from day 1

This is your money trapped in the payment system

Apple Releases your cash


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TYPICAL LAUNCH SCENARIO

LAUNCH

Fail to get credit with

ad networks

Can’t reinvest to acq more

users

You get paid by Apple

DOWNLOADS REVENUE

Rev

enue

/ D

ownl

oads



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HOW DEVS FUND USER ACQUISITION

Venture Capital

Using equity financing from your VC is expensive and dilutive (and they don’t like it…)

Publisher

The developer can’t afford to fund UA on their own so they look for a publisher and give up a rev share.

Credit Card

High growth or long tail developers don’t meet the credit parameters for ad networks, so relegated to pre-paying. Doesn’t work in high growth scenarios.

Err… Not at all…

So many times, the funding gap means that great apps and games never see the limelight as devs cannot afford to promote effectively.


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It’s not just the cash, it’s what you can

do with it.

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REINVEST DIRECTLY INTO PROMOTION

ACQUIRE MORE USERS

ACCESS FUNDING BASED ON DAILY SALES


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TYPICAL LAUNCH SCENARIO

LAUNCH

Fail to get credit with

ad networks

Can’t reinvest to acq more

users

You get paid by Apple

DOWNLOADS REVENUE

Rev

enue

/ D

ownl

oads


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LOWER YOUR EFFECTIVE CPI BY REINVESTING WHEN YOU ARE RIDING HIGH…


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MONETISATION

ACQUISITION

Test Refine

Test Refine


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MONETISATION ACQUISITION SUCCESS

SUCCESS FORMULA


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STEPS TO SUCCESS

Do a small scale test campaign and measure EVERYTHING

Understand your key metrics - LTV, D1/7/14/28 Retention, ARPDAU etc.

Once you understand your metrics, progress to stage 2

1 2 3Trial several networks to test acquisition costs

Understand attribution mechanism and underlying virality

If you can acquire users profitably, progress to stage 3

Plan how you’ll finance your UA campaign early

Don’t get caught short if you find the formula that works

Hit it hard, and double down… $$$

$


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YOUR GAME FUNDS ITS OWN UA


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TAKEAWAYS

Test & Develop relentlessly before you begin to ramp up your User Acquisition campaign. Don’t launch until you know you can acquire users profitably!

Plan how you will fund User Acquisition growth campaigns. Keep your equity funding in the bank!


THANK YOU@martinmacmillan

[email protected]

https://pollen.vc

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The Funding Gap