Opal Energy to Acquire
OPA: CSE
ALLOWING GAME DEVELOPERS TO OFFER REAL
MONEY AND PRIZE-BASED VIDEO GAME MATCHES
INVESTOR MATERIALS
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CONFIDENTIAL | DO NOT DISTRIBUTE
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THE MARKET FOR REAL-MONEY VIDEO
GAME MATCHES IS MASSIVE.
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THE GLOBAL VIDEO GAME MARKET EXCEEDS $100BILLION/YEAR
THE ONLINE GAMING (GAMBLING) MARKET IS OVER $40BILLION/YEAR
GAMING REVENUE IS GROWING FASTER THAN ANY OTHER FORM OF ENTERTAINMENT
THE E-SPORTS MARKET WILL HAVE A 20+%
CAGR OVER THE NEXT 3 YRS
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1. Gartner Research 2. H2 Gambling Capital, Statista 3. PWC study, MSFT estimates 4. Newzoo, Superdata
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DEVELOPERS WANT THEM.
PLAYERS WANT THEM.
The only issue is how to make it happen.
Money tournaments will be “table stakes” soon
-- Johnathan Zweig, VP, Corporate Alliances,
Players are already play for money - if you could make it easy and
in-game, people would love it. —John O’Connell
Koei Tecmo - Creative Director, Team Ninja
“It’s not a matter of whether players want real money gaming,
it’s only a question of how and when we can give it to them.”
Versus addresses
very serious
technical challenges
in a highly regulated
market…
Newzoo report estimates
that eSports Enthusiasts will
reach 145 million by 2017
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WE BUILT IT
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A screenshot from Nightmare - a Unity
demo game with Versus functionality
Fully integratabtle API, with a proprietary system for player verification
and a platform for hosting matches
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US and PCT patent filings covering claims
from player identification and verification
to conditional payout systems
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A team of industry experts and top-notch developers
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Expertise and research into player habits and behaviors
A legal opinion letter from Manatt Phelps & Philips verifying the legality of the system
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WE MADE IT LEGAL
VERSUS DEVELOPED A LEGAL,
PROPRIETARY PLATFORM FOR REALMONEY VIDEO GAME TOURNAMENTS
Secured a 22 page opinion memo from the firm of
Manatt Phelps & Phillips on the legality of the platform
Filed US and PCT international patents with a filing date
of July 22, 2014 for multiple groups of claims
including:
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Systems to determine and verify player identity using
location, age, and other factors
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Systems using identity verification to establish prize
eligibility across multiple jurisdictions
•
Methods to assess and distribute conditional prizes
to individual players based on player eligibility
•
Methods to remove the element of chance from a
video game tournament at the tournament level
•
Systems to create and maintain tournaments using
virtual currencies that may be exchanged for real
money, physical goods, and/or downloadable
content
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THE BUSINESS MODEL
Splitting a portion of the revenue with players and developers/publishers
For every $1
Dollar in buy-in
In real money
tournament payouts
In Downloadable Content
(DLC ) tournament payouts
where the developer
provides DLC
$0.89
$0.02
$0.03
returned to players
goes to Versus
is split with developers
DLC
$0.21
$0.73
returned to players
goes to Versus
is split with developers
All calculations approximate, based on $2.50 average buy-in amount, the remaining % goes to 3rd party APIs for location, age verification and payment processing
- numbers for illustrative purposes only
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PLAYING GAMES FOR PHYSICAL GOODS:
SPONSORED MATCHES BRING REVENUE, ENGAGEMENT, AND DATA
Versus is already building relationships with a number of third party companies who
want to offer their consumer packaged goods (CPG) as prizes in video game matches
Imagine players playing for Tier1 controllers, Crunchyroll subscriptions, Rockstar Energy
Drink t-shirts, or signed figurines
CPG is governed by the same regulatory process as real money but with better margins
for publishers and prize sponsors
The Versus platform allows companies with physical goods to reach this valuable
customer base
Developers and prize sponsors profit from the partnership
Potential partners include:
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DLC: LEGAL & PROFITABLE
Downloadable Content (DLC) is the fastest growing revenue stream
in gaming - and it’s a legal prize type in every state.
Unlock playable characters
New adventures
Upgrades: weapons, jerseys, special moves
Players perceive HUGE VALUE as they play for items that cost
publisher/developers next to nothing
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Versus is building
Financial Technology
for downloadable content
(DLC) economies
$135MM/qtr
A multi-billion dollar market that needs player
identification, verification, authoritative
exchanges, and the distribution of goods (even digital and virtual ones)
Versus IP is poised to be the $60MM/qtr
INDUSTRY STANDARD
for DLC FinTech
http://www.businessinsider.com/clash-of-clans-earns-15-million-a-day-as-top-grossing-app-2015-6
http://www.digitaltrends.com/gaming/hearthstone-earning-20-million-monthly/
http://www.forbes.com/sites/greatspeculations/2015/08/03/digital-segment-leads-electronic-arts-revenue-growth-in-q1-2016/
$255MM/qtr
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For our partners, it’s not just a new revenue stream.
It’s about TIME
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A new feature that keeps players in-game for longer
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Non-players become players
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Monthly active users become daily active users
WHEN DEVELOPERS ENGAGE PLAYERS
AVERAGE REVENUE PER USER INCREASES
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B2B PLATFORM = LOW CUSTOMER ACQUISITION COST
By integrating directly into games, Versus can access millions of existing
players instead of having to advertise to them individually:
Acquisition Cost
Versus Example:
Reach
partner with a game developer
> 45 million
Near 0
players directly
B2C Example:
spend tens of
millions per month
on advertising
-
Statista, Raptr, NewZoo, Steam, Privco Research
https://www.fanduel.com/about
http://www.inc.com/ilan-mochari/fantasy-sports-betting-startups-206-million-tv-ads.html
Reach
>1 Million
paid active users
~$70 per user
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GAMING IS A VERY HOT SPACE
Billions raised and spent on media, daily fantasy, and e-sports
FANTASY SPORTS/eSPORTS
$361.2MM
RAISED
MOBILE
$5.9BN
ACQUIRED BY ATVI
$375MM
RAISED
IN-GAME GAMING
$16MM
RAISED
MEDIA
$1BN
ACQUIRED BY AMZ
http://www.legalsportsreport.com/dfs-investment-and-acquisition-tracker/
crunchable.com
$12MM $31MM
RAISED
RAISED
FANTASY eSPORTS
$13.3MM
RAISED
$10MM
RAISED
MEDIA
MEDIA
€78MM
$30MM
ACQUIRED BY MTG
INVESTED IN BY RIOT
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MILESTONES FOR THE NEXT 12 MONTHS
TECHNICAL
COMPLETE DLC API - COMPLETE TAX MODULE - INTEGRATE INTO 2 GAMES - BUILD IN
BROADCAST FUNCTIONALITY TO SHOW REAL-MONEY MATCHES ON TWITCH AND YOUTUBE
BUSINESS DEVELOPMENT
ADD KEY HIRES TO BOARD - SIGN DEFINITIVE AGREEMENTS WITH GAME DEVELOPERS - BUILD OUT PRIZE PROVIDER POOL FOR CPG TOURNAMENTS
LEGAL/REGULATORY
FILE ADDITIONAL IP AROUND PLAYER VERIFICATION/AUTHENTICATION - EXPAND IP
AROUND LIVE EVENTS AND BROADCAST - RUN LIVE REAL-MONEY EVENT IN LAS VEGAS
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MAKES MONEY ON EVERY TOURNAMENT
REAL-MONEY, CPG, DLC, AND BROADCAST REVENUE MEANS MILLIONS PER MONTH
Cumulative*P&L
$16,000,000*
$14,000,000*
Gambling and Gaming
companies trade at
impressive multiples
$12,000,000*
$10,000,000*
$8,000,000*
$6,000,000*
Market Cap: $3.4B
P/E ratio: 45
$4,000,000*
$2,000,000*
$)
$(2,000,000)
$(4,000,000)
$(6,000,000)
Cumulative*P&L
Market Cap: $28B
P/E ratio: 26
MORE GAMES = MORE REVENUE = HIGHER VALUATION
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Coming soon: The World
Now raising $5M
Use of proceeds:
Acquire Versus and all of its IP
Build an 18 month runway for technical, IP, and business development, including:
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Hire 5 new full-time engineers now, 16 FTE in nine months
Begin integrating into games with two significant developer-partners
File new IP around player identification, live events, and broadcast systems
Complete conditional payment and tax module integration
Develop live-tournament architecture and Twitch broadcast system
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KEY TEAM MEMBERS
Head of Developer
Relations
Koei Tecmo,
Gaming industry consultant
Founder, CEO
Stanford, UCLA MBA
Multiple startups, BCG,
WarnerBros
MATTHEW PIERCE
JOHN O’CONNELL
Advisor, Board
Member
Disney, Warner Bros,,
ICM Partners, Netflix
KEYVAN PEYMANI
Head of Software
Development
SleepyGiant, EA Mobile,
Superplay Games
SCOTT SEBELIUS
Advisor
UCLA Anderson faculty
Packard Bell, Originate,
Scheinrock Advisory Group
JEFF SHEINROCK
Legal Council
Manatt Phelps & Philips,
World expert on gaming,
gambling, sweepstakes law
LINDA GOLDSTEIN
INVESTORS:
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WE’RE READY
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The first version of the platform is built
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IP is filed around player identification, conditional payment distribution,
and decreasing the role of chance in tournaments
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Conditional payments, including DLC, makes legal matches possible for
every player everywhere - a differentiated, defensible value proposition
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Makes money with every transaction, has capital efficient scale
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Working with our first partner game developers right now
CONTACT US AT [email protected]
LEARN MORE AT VERSUSGAMINGNETWORK.COM
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