Confluence.VC Access Fund - GameOn
Hey everybody,
The Confluence.VC Access Fund is excited to launch our latest syndicate in GameOn.
We received this opportunity due to Tyler's close relationship with the founder, who opened the note to insiders and strategics ahead of the next financing or potential acquisition. If you are interested in learning more about this deal and future syndicate opportunities, please apply to our syndicate below:
Opportunity Overview
GameOn's CEO, Alex Beckman, has offered the Confluence Access Fund and Syndicate an opportunity to invest in the company at the previous round’s valuation via a $100M cap note and a 10% discount. We are presenting a $500k allocation to the Confluence.VC Access Fund and Syndicate.
The company has emerged as a leader in its space, and already begun discussions with growth investors for its next round of financings at a valuation step up within the next year. Additionally, the company has received inbound interest from unnamed acquisition suiters at significant steps ups from the previous round's valuation. These events demonstrate GameOn's value and optionality going forward; as its leadership team can either continue growth or explore liquidity options.
Company Overview
GameOn Technology is the leader in user engagement, content distribution, and monetization in the conversational application technology space (e.g. SMS, Facebook/WhatsApp chat, etc. as a service). GameOn's enhanced chat-as-a-service platform differentiates itself by connecting to its customers content libraries, management systems, and data publishing systems; allowing for the rapid development and distribution of monetize-able, premium user experiences across conversational platforms with close to zero tech integration costs. There are several billion people using chat platforms every day and GameOn's clients had zero meaningful access to them in conversation until prior to GameOn's ChatOS. GameOn is putting some of the world's biggest brands into the conversation with white-labeled consumer-facing chat products to increase engagement and monetization. For instance, fans of the NBA will get an update via chat with an embedded Adidas advertisement when they are sent a James Harden highlight before or after a game.
Product: Via the ChatOS proprietary development and AI services platform, GameOn delivers real-time content with the context that leads to in-depth knowledge about any size audience at the speed and scale of chat. Applications developed with ChatOS run across every major messaging platform, streamlining brands' ability to meet fans wherever they are from a unified management platform. Early clients include Sky Sports, the English Premier League, Arsenal, and FIFA in the world of international football. Today, GameOn has many others including the NBA, NHL, PGA, Time Inc, and more. GameOn's recent expansion into gaming has proven both successful, starting with RIOT and PUBG; and the company has received inbound interest from enterprise and healthcare companies as well.
Team
Executive Team: Alex Beckman, Nate Simmon, Kalin Stanojev, Jason Ross, Jasmine Mayo, and Frann Vettor Gray
Partners: NBA, NFL. PUBG, Arsenal, Live Nation, PGA Tour, Travel + Leisure, Red Bull Media, Riot Games, Time Inc, Sky, Real Simple, Etc.
Investors: Liquid 2 Ventures, SkyStar Capital, Sports Investment Partners, RHL, Snoop Dog, Gary Payton, Joe Montana, Andre Iguodala, Dwane Bravo, Chad + Jessica Herrin, Asahi Medialab Ventures, Mirae Venture Partners, Innovation Global Capital, Claytonia Capital, Paxion Capital, Mo Bamba, Ed Zander, and WISE Ventures
Traction & Projections
Revenue:
2018: $3.1M
2019: $12.3M
2020: ~$12.5M (context below)
*Note* - Covid caused a pause in sports activities for 2020, however, the company was able to maintain 2019's revenue with just one quarter of activity demonstrating its growth and resilience. Now that sports activities are resumed and will continue to recapture their previous momentum, GameOn is perfectly positioned to capture the correlated revenue opportunity.
Projections:
2021(E) - $32.7M
2022 (E) - $70M
2023 (E) - 107.5M
Traction (Near EOY 2020):
MAU - Q3 2019 7M, Q3 2020 17M
DAU - Q3 2019 4M, Q3 2020 9M
Retention - 2019 65%, 2020 72%
Open Rate - 2019 32%, 2020 36%
Mute Rate - 2019 8%, 2020 7%
Total Messages - 2019 436.8M, 2020 863.3M
Round Details:
Closing date: midnight EST on 4/23/21
Round: Series A
Amount raising: $500k
Carry: 20%
Instrument: Convertible note
Cap: $100M
Discount: 10%
Thanks so much for reading this far. If you are interested in participating in this opportunity, please submit your information using the button below!
If you have any questions, please send a note to either Tyler (tyler@confluence.vc) or Clay (clay@confluence.vc).