What game developers should know about venture investors?

Pavel Bogdanov, a partner of Almaz Capital explained the difference between game publishers and venture capitaists in the INTERGRAME 2013 conference in Tallinn. Creative Estonia summarized the main points.

The mission of Almaz Capital is to support and build partnerships with passionate entrepreneurs who are determined to build great companies by solving large and unmet market needs. With their extensive experience and an large network of relationships, Almaz Capital enables its entrepreneurs, venture-capital co-investors and limited partners to access global opportunities and effectively navigate in emerging venture capital markets.

According to Pavel Bogdanov, Venture capital funds invest into but also help companies increase growth.

“The main difference between venture capital funding and game publishing is that the publisher looks for the cash flow generated by the title but a venture capitalist looks for capital gains from investment into equity when exit occurs via sale,” Pavel explains 

“Game publishers focus on game portfolio, gameplay and creativity, potential audience and traffic sources whereas venture capitalists look at the market size up to $1B, the business model, how dynamic it is and how the team cooperates,” Pavel concluded.