How much data/time do you need to analyse trends?
For a typical developer we need approximately two months of data but the higher the KPIs, and the more data the better. This all helps fees on the loan and reduces time to decide.
For Ignition Capital, what metrics do you look for?
DAU; we would like to see DAU of 5,000 or above, so that we know you have proved your game works with a good sample size.
Retention Curve – typically 1d, 7d, 30d.
ROI: Our ultimate RoI hurdle to make an Ignition Capital (IC) loan is 15% – ie. if the CPI $1, and LTV 1.15 then the RoI is 15%; and thats a great place to be to be eligible for an IC loan.
How do we work with you on Ignition Capital ahead of a global launch?
Typically we would like to engage with you at the start of your soft launch. You will have your own dedicated account manager from the start.
We will advance you the Ignition Capital if the soft launch shows good return metrics, and the more we know about you and your game, the quicker this can happen.
Using your data, our Pulse Dashboard models your game; we get comfortable on your growth trajectory and the ROI outlook, and once onboard, we lend you the money.
Note that each day a game makes revs, and you have borrowed Ignition Capital, then we switch the Ignition Capital loan to a lower PlayCapital loan rate – to the amount equal to the revenues earned.
How does the sign up process work?
In short, you and your account manager at PlayIgnite will work closely every step of the way. Signup time is approximately 2 weeks, but the earlier we engage to prepare for the loan, analyse your data, the quicker this process could be.
We will conduct our due diligence, produce the loan and security agreements, and help facilitate the loan repayment mechanism. We will take the burden away from you and will manage the process.
Our priority is to lend you money when your game is performing at its best, so we want to scale all the content we are backing as proactively as possible – especially as the metrics are trending positively.
How much can we lend?
We have a big balance sheet, but we wouldn’t lend you a large amount immediately. We would monitor the returns of the initial UA spend, and as we both see that a UA campaign is working, we will allow you to scale up the loan appropriately.
A typical example might be to lend you $100k in Month 1 & slowly scale this to $500k within 6 months.
We will assign you an account manager who will help you monitor the returns and make the decision as and when to draw down more Ignition Capital.
How does the security part of the loan work? What is it securitised against?
In most cases, the loan will be collateralised against the revenues of the specific game in question; so not against your company itself.
So we would seek to have the game revenues allocated to pay down the loan. We would put a charge against this and register it on the appropriate platform.
What are the rates of interest?
A typical Ignition Capital loan would be at 5%/month.
Typically this is only outstanding for 45 days, as your revenues pay down the loan (the rate at which that happens depends on the success of your game).
An Ignition Capital loan transitions in to a PlayCapital loan as you generate revenues. The PlayCapital loan carries a lower rate of interest, typically 2%.
How and why do we switch from an Ignition Capital loan to a PlayCapital loan?
The Ignition Capital loan will be spent on UA, which will drive installs and revenues.
Once your game is generating revenues, they will sit at the AppStores. We will finance those receivables too, and switch the original loan from Ignition Capital to a PlayCapital loan (equivalent to revenues generated).
So, in reality, you may only be drawing down on Ignition Capital for a small period of time
How often do I make the Interest payment?
It is ultimately chargeable and payable on the Appstore receipt. For your PlayCapital loan, we lend 95% of the receivable. So for example, if you generate revenues of $100, we will lend $95 upfront.