FreshRSS

🔒
❌ About FreshRSS
There are new available articles, click to refresh the page.
Before yesterdayYour RSS feeds

6 investors on 2021’s mobile gaming trends and opportunities

By Lucas Matney

Many VCs historically avoided placing bets on hit-driven mobile gaming content in favor of clearer platform opportunities, but as more success stories pop up, the economics overturned conventional wisdom with new business models. As more accessible infrastructure allowed young studios to become more ambitious, venture money began pouring into the gaming ecosystem.

After tackling topics including how investors are looking at opportunities in social gaming, infrastructure bets and the moonshots of AR/VR, I asked a group of VCs about their approach to mobile content investing and whether new platforms were changing perspectives about opportunities in mobile-first and desktop-first experiences.

While desktop gaming has evolved dramatically in the past few years as new business models and platforms take hold, to some degree, mobile has been hampered. Investors I chatted with openly worried that some of mobile’s opportunities were being hamstrung by Apple’s App Store.

“We are definitely fearful of Apple’s ability to completely disrupt/affect the growth of a game,” Bessemer’s Ethan Kurzweil and Sakib Dadi told TechCrunch. “We do not foresee that changing any time in the near future despite the outcry from companies such as Epic and others.”

All the while, another central focus seems to be the ever-evolving push toward cross-platform gaming, which is getting further bolstered by new technologies. One area of interest for investors: migrating the ambition of desktop titles to mobile and finding ways to build cross-platform experiences that feel fulfilling on devices that are so differently abled performance-wise.

Madrona’s Hope Cochran, who previously served as CFO of Candy Crush maker King, said mobile still has plenty of untapped opportunities. “When you have a AAA game, bringing it to mobile is challenging and yet it opens up an entire universe of scale.”

Responses have been edited for length and clarity. We spoke with:

Hope Cochran and Daniel Li, Madrona Venture Group

Does it ever get any easier to bet on a gaming content play? What do you look for?

Hope Cochran: I feel like there are a couple different sectors in gaming. There’s the actual studios that are developing games and they have several approaches. Are they developing a brand new game, are they reimagining a game from 25 years ago and reskinning it, which is a big trend right now, or are they taking IP that is really trendy right now and trying to create a game around it? There are different ways to predict which ones of those might make it, but then there’s also the infrastructure behind gaming and then there’s also identifying trends and which games or studios are embracing those. Those are some of the ways I try to parse it out and figure out which ones I think are going to rise to the top of the list.

Daniel Li: There’s this single-player narrative versus multiplayer metaverse and I think people are more comfortable on the metaverse stuff because if you’re building a social network and seeing good early traction, those things don’t typically just disappear. Then if you are betting more on individual studios producing games, I think the other thing is we’re seeing more and more VCs pop up that are just totally games-focused or devoting a portion of the portfolio to games. And for them it’s okay to have a hits-driven portfolio.

There seems to be more innovation happening on PC/console in terms of business models and distribution, do you think mobile feels less experimental these days? Why or why not?

Hope Cochran: Mobile is still trying to push the technology forward, the important element of being cross-platform is difficult. When you have a AAA game, bringing it to mobile is challenging and yet it opens up an entire universe of scale. The metrics are also very different for mobile though.

Daniel Li: It seems like the big monetization innovation that has happened over the last couple of years has been the “battle pass” type of subscription where you can unlock more content by playing. Obviously that’s gone over to mobile, but it doesn’t feel like mobile has had some sort of new monetization unlock. The other thing that’s happened on desktop is the success of the “pay $10 or $20 or $20 for this indie game” type of thing, and it feels like that’s not going to happen on mobile because of the price points that people are used to paying.

Alice Lloyd George, Rogue VC

Ada Ventures closes first fund at $50M, investing in diverse founders tacking society’s problems

By Mike Butcher

A year ago this week Ada Ventures — a UK/Europe focused VC with an ‘impact twist’ aiming to invest in diverse founders tacking societal problems — launched on stage at Techcrunch Disrupt. (You can watch the video of that launch below).

Today Ada announces that it has closed its first fund at $50 million. Cornerstone LPs in the fund include Big Society Capital, an entity owned by the UK government, as well as the the British Business Bank.

Check Warner, a co-founding partner, said the raise was oversubscribed: “We weren’t even sure we’d be able to raise $30 million. And then to actually get to 38 million pounds then $50 million, which was over our initial hard cap of 35 is, is really, really big.” All of the fund was raised on video calls during the 2020 pandemic.

Geared as a ‘first-cheque’ seed fund, Ada is trying to tackle that thorny problem that to a large extent the VC industry itself created: the ‘mirroring’ that goes on when white male investors invest in other white men, thus ignoring huge swathes of society. Instead, it’s aiming to invest in the best talent in the UK and Europe, regardless of race, gender or background, with the specific aim of “creating the most diverse pipeline, and portfolio, on the continent”, while tackling issues including mental health, obesity, workers rights and affordable childcare.

It appears to be well on its way. In 2020, Ada invested in eight seed-stage companies tackling the above issues. Four of the eight companies have female CEOs. This brings the total portfolio size to 17, including the ‘pre-fund’ portfolio.

In terms of portfolio progress: Huboo Technologies raised a £14m Series A, which was led by Stride VC and Hearst Ventures; Bubble delivered tens of thousands of hours of free childcare to NHS staff; and Organise grew their members from 70,000 to more than 900,000, and campaigned for the government to provide support for the self-employed during COVID-19.

On Ada Lovelace Day this October, Ada launched its own Angel program, enabling five new Angel investors to write their first cheques. This is not dissimilar to similar Angel programs run by other VCs. It also has a network of 58 ‘Ada Scouts’ resulting in around 20% of deal flow, with two investments now made across the portfolio that were scout-sourced.

This is no ordinary scout network, however. Ada’s Scout community includes the leaders of Hustle Crew, a for-profit working to make the tech industry more inclusive, and Muslamic Makers, a community of Muslims in tech.

In 2021, Ada says it will continue to grow its network of Ada Scouts across the UK, with a focus on the LGBTQ+ community, disabled entrepreneurs, and regions outside of London.

And Scout network is not just ‘for show’, as Warner told me: “We have spoken to the Iranian Women’s Association and Islamic makers and all these groups that are underrepresented within tech and VC. And they bring us companies. And if we end up investing in these companies, we pay them both an upfront cash fee and also a carried interest share. So there are quite a few things that make it distinct from other scout programs. Many other scout programs just take existing investors like existing angels, and give them more capital and double up their investments. We’re actually enabling a whole new group of people who wouldn’t otherwise be able to get access to VC. We involve them in our due diligence process, we get their insight into markets that we wouldn’t necessarily understand, like the Shariya finance market, for example. So there are quite a few things that we’re doing differently. And we now have 58 of these scouts, who drive between 10 and 20% of our deal flow on any given month.”

Warner continued: “When we launched we couldn’t have predicted the seismic changes and tragedy brought on by Covid-19, or the social dislocation precipitated by the killing of George Floyd. These events have provided the backdrop of the first year of deployment from Ada Ventures Fund I. In light of these events, the Ada Ventures strategy feels more poignant — and urgent — than it has perhaps ever been.”

In an exclusive interview with TechCrunch, Warner and co-founder Matt Penneycard admitted the fund is not ‘labeled; as an ‘Impact fund’ but that it shares a similar orientation.

Penneycard said: “The difference, the difference is often in the eye of the beholder. In that, it’s the way the investor wants to bucket it. Some investors might see us as an impact fund if they want to, and that’s fine. Other investors see the massive financial arbitrage that you get with a fund like ours, just because you’re looking in very different places to other funds. So, you’ve got more coming in the top of the funnel, if you’ve got a decent process, you should get a better outcome. And so with some of our investors, that’s kind of one of the primary reasons they’re investing, they think we’re going to generate superior returns to other funds, because of where were are looking. It isn’t pure impact. It’s a real fund, it just happens to have the byproduct of quite deep, meaningful social impact.”

Mixtape podcast: Making technology accessible for everyone

By Henry Pickavet

Welcome back to Mixtape, the TechCrunch podcast that examines diversity, inclusion and the human labor that drives tech.

This week, Megan moderated a panel at Sight Tech Global, a conference dedicated to fostering discussion among technology pioneers on how advances in AI and related technologies will alter the landscape of assistive technology.

The panel featured three heavy hitters in the accessibility space: Haben Girma (pictured above), the first deafblind person to graduate from Harvard Law School and who is a human rights lawyer advancing disability justice; Lainey Feingold, a disability rights lawyer who was on the team that negotiated the first web accessibility agreement in the U.S. in 2000; and George Kerscher, the chief innovations officer for the DAISY Consortium.

Among the topics they discussed were communicating via Zoom and other video platforms in the days of COVID, how tech companies have adhered to the Americans with Disabilities Act, and the need for a culture shift if we’re going to realize any significant change.

“It’s all about a culture change to really make sure technology is accessible for everyone,” Feingold told Megan. “And you can’t get a culture change, I don’t believe, by hammering people. You get a cultural change by having conversation and relying on civil rights laws, but not as the hammer.”

And then there are the robots. Girma acknowledges that people in the disability community and people in the AI community are having conversations about technological advancements and accessibility. But she says that not enough of the people how are building the robots and using AI are having these conversations.

“Don’t blame the robots,” she says. “It’s the people who build the robots who are inserting their biases that are causing ableism and racism to continue in our society. If designers built robots in collaboration with disabled people who use our sidewalks and blind people who would Use these delivery apps, then the robots and the delivery apps would be fully accessible. So we need the people designing the services to have these conversations and work with us.”

 

Greece’s Marathon Venture Capital completes first close for Fund II, reaching $47M

By Mike Butcher

Marathon Venture Capital in Athens, Greece has completed the first closing of its second fund, reaching the €40m / $47M mark. Backing the new fund is the European Investment Fund, HDBI, as well as corporates, family offices and HNWIs around the world (plus many Greek founders). It plans to invest in Seed-stage startups from €1m to 1.5m initial tickets for 15-20% of equity.

Team changes include Thaleia Misailidou being promoted to Principal, and Chris Gasteratos is promoted to Associate.

Marathon’s most prominent portfolio company is Netdata, which last year raised a $17 million Series A led by Bain Capital, and later raised another $14m from Bessemer. On the success side, Uber’s pending $1.4B+ acquisition of BMW/Daimler’s mobility group was in part driven by a Marathon-backed startup, Taxibeat, which was earlier acquired by Daimler.

Partners George Tziralis and Panos Papadopoulos tell me the fund is focused generally on enterprise/B2B, plus “Greek founders, anywhere”.

Highlights of Fund One’s investments include:

  • Netdata (leading infra monitoring OSS, backed by Bessemer & Bain)
  • Lenses (leader in DataOps, backed by 83North)
  • Hack The Box (cybersecurity adversarial training labs)
  • Learnworlds (business-in-a-box for course creators)
  • Causaly (cause-and-effect discovery in pharma)
  • Augmenta (autonomous precision agriculture)

Tziralis tells me the majority of its next ten companies have already raised a Series A round.

Tziralis and Papadopoulos have been key players in the Greek startups scene, backing many of the first startups to emerge from the country over 13 years ago. And they were enthusiastic backers of our TechCrunch Athens meetup many years ago.

Three years ago, they launched Marathon Venture Capital to take their efforts to the next level. Fund I invested in 10 companies with the first fund, and most have raised a Series A. The portfolio as a whole has raised 4x their total invested amount and maintains an estimated total enterprise value of $350 million.

They’ve also been running the “Greeks in Tech” meetups all over the world – Berlin to London to New York to San Francisco, and many more locations in between, connecting with Greek founders.

❌