tim morten

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Start-Up Horror Stories: 

Start-Up Horror Stories Tim Morten Chacko Sonny John Lafleur

Overview: 

Overview Independent developer experiences Some anecdotal, some personal What lessons can be learned for those starting or joining a start-up? Q andamp; A

Introduction: 

Introduction Who are we? What’s our background?

Our Perspective: 

Our Perspective It’s a risky business Downside can easily outweigh upside The lure of royalty and independence can be deceptive

“Big Promises”: 

'Big Promises' Former publishing big-wig recruits members from star team for new start-up with himself at helm Promised team to close funding rapidly Promised team even distribution of equity Represented to publisher that team was capable of timely delivery.

“Big Disappointment": 

'Big Disappointment' Closure of deal dragged on No equity ever granted to team Development milestones passed unfulfilled Deal lost and team dispersed

Question Promises: 

Question Promises Don’t promise what you can’t deliver Don’t assume that employment promises will 'just work out' Always be skeptical of the time frame to close a deal.

“The Perfect Partner”: 

'The Perfect Partner' Star programmer teams up with designer of one of the most popular games of all time High royalty deal signed with top-tier publisher Game centered around high design concepts

“The Imprisoned Partner”: 

'The Imprisoned Partner' Designer had substance abuse issues Ends up in jail Remaining partner forced to assume leadership Publisher relationship deteriorates ultimately resulting in cancellation and dissolution

Know Your Partners: 

Know Your Partners Know your partners Be realistic about weaknesses and 'red flags' Be prepared with a partner exit plan in case it is needed

“The Passion Project”: 

'The Passion Project' Successful team from major company spins off Top tier publisher buys into their dream project Ambitious design conceived

“Fatal Attraction”: 

'Fatal Attraction' Unwillingness to modify vision to address publisher’s commercial concerns leads to contentious relationship Project is released with negligible marketing support Sales are dismal resulting in no follow up deal. Company dissolves

Work WITH Your Publisher: 

Work WITH Your Publisher Publisher marketing and production can be valuable collaborators Avoid contentiousness at all costs Participate in and even drive your product’s marketing plan Secure follow on deals prior to product release (even with other publishers)

“The Dream Contract”: 

'The Dream Contract' Developer signs lucrative deal for a major franchise Agrees to a conservative design on an aggressive schedule Secures favorable contract terms

“The Impossible Dream”: 

'The Impossible Dream' High profile nature of project produced unmatched expectations Failure to deliver key technology on schedule causes further rift in relationship Project summarily cancelled by publisher

Every Dream Has Its Price: 

Every Dream Has Its Price Lucrative contracts can lead to mismatched expectations Don’t let a favorable contract blind you to production risks Ultimately, your company will rarely profit on an unreleased product

Conclusions: 

Conclusions It’s a risky business Many more start-ups fail than you hear about The odds are against your success But if you do decide to join a start-up, stay mindful of the risks involved

Footnote: 

Footnote Publishers can be really evil…. Except our current or future publishers, of course.

Q & A: 

Q andamp; A Slides will be available next week at www.SavageSite.com