Games and Angels

Nicolaj Højer Nielsen nhn@sepior.com

www.linkedin.com/in/nicolajnielsen @nhoejer

Nicolaj Højer Nielsen: My background

Risk in startups – as perceived by investors

Organizational

Market

Tech

Perceived TECHNOLOGY risk in games

Tech

Perceived MARKET risk in games

Market

Most angels dont believe they could foresee this– BEFORE LAUNCH

Perceived ORG risk – in games

Organizational

COMMERCIAL COMPETENCES – even more than the tech team

WHY do Business Angels invest?

Example: Recon Instruments

The human factor: Either you know the investor, or the investor

knows the industry

You will have to JUMP before getting the investor on board

How angels perceive early stage game investments in games/apps

1. Low technology risk - great

2. A lottery ticket on the market side

3. Impossible to evaluate market/demand before launch

4. Hard to evaluate org competences, because many angels have limited industry experience within apps/games

5. Invest for many other reasons than financial return

6. FUN factor could be high

7. Conclusion: You will fund the first steps – this also sends a strong signal to potential investor

8. (unless you know them personally – and they trust you)

Questions?

Nicolaj Højer Nielsen nhn@sepior.com

www.linkedin.com/in/nicolajnielsen @nhoejer

EXTRA SLIDES

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Q12008

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Q42008

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Pre-money valuation: A startup

PROTOTYPE

Business Angels

VC

Family/friends

PARTNERS REVENUE TEAM & IDÉ

Are you sure you need money now?

Different types

Inexperienced investor

- Often a perform from your extended network

- Or executive/high net worth that wants to be involved in startups

- Few investments

Member of BA Network - Active in one of the official NA networks

- Entrepreneurs, executives and “old money”

- Often more experienced in service/production industries

Super angels - Experienced successful entrepreneurs

- Especially investing own money from IT exits

Different behaviour

How to find them?

Member of BA Network - Formal channels: DVCA.dk and the

websites of the 5 formal networks (ex. www.Ba-copenhagen.dk)

- But try personal contact before! Look at members that have invested in similar

cases/industries!

Super angels - Very visible in the media (Jesper buch,

Tommy Ahlers, Martin Thorborg, Morten Wagner, Morten Strunge etc.)

- Most of them NOT member of formal BA networks. Use direct calls/e-mails.

- Get many requests - use personal connections to get introduced)

Inexperienced investor - They basically invest in YOU

- Find them via friends-of-friends - Often does not see themselves as a

business angel but would like to invest into a “lottery ticket”

Questions?

Nicolaj Højer Nielsen nhn@sepior.com

www.linkedin.com/in/nicolajnielsen @nhoejer