ME

Megamod Financial Model

Three integrated products:

1. MegaMod (Production) - no-code/low-code game creation suite for amateur creators. Tools: MegaEditor (game engine), MegaCode (semantic AI coding), MegaSkin (character skin editor), MegaBuilder (prop editor), MegaGames in-game library, MegaChill (audience interaction + prize giveaways).
2. MegaGames (Marketing + Distribution) - game catalog / portal where created games are published and played publicly. Distributed via browser portals (CrazyGames, Y8, NowGG, Poki), Smart TV (Amazon Fire TV, Google TV, LG WebOS), and social/streaming platforms (YouTube Playables, TikTok, Netflix).
3. MegaBit App (Wealth) - social mechanics / monetisation layer; limited detail in deck.

Core value prop: game development cost $5 and 3–4 hours vs. $200K+/6+ months for Roblox Studio/Fortnite Creative, and $250K+/6+ months for Unity/Unreal. Platform supports >400 concurrent online players vs. 50–100 for Roblox Studio.

MegaChill claims capacity for an audience 10× larger than Roblox's similar service and 5× larger than Fortnite's.

• TAM: $3B - derived as 620M U18 gamers worldwide × 40% MAU conversion (Roblox benchmark) × $12 ARPMAU (Roblox benchmark).
• Target creator pool: 50M creators who currently cannot break into UGC game development.
• GenZ is 30% of Earth's population; 45% of GenZ want to become a creator; 97% of creators are amateurs.
• No independent SAM/SOM breakdown provided in deck.

• In-app purchases and game-time sales - explicitly named as the two revenue streams.
• Benchmarked against Roblox monetisation: $12 ARPMAU at 40% MAU conversion.
• Cost to creator per game: $5 - implies a platform fee or subscription component, though the exact pricing structure (subscription, transaction, revenue share) is not detailed in the deck.
• Distribution via MegaGames catalog implies potential ad revenue or portal revenue-share, but not stated.

All metrics as of Jun 16, 2024 (deck dated June 2024):

• "2K creators" and "60K+ games" in headline; precise figures from chart: 2,564 creators, 65,793 games.
• No revenue, DAU/MAU, retention, or monetisation traction disclosed.
• Team has launched 100+ mobile games with 150M combined audience (historical, not Megamod).
• In-house dev team has 93M app installations on AppStore (ex-Joy Bits).

• Cost per game creation (creator-side): $5 vs. $200K–$250K for traditional tools.
• ARPMAU benchmark: $12 (Roblox-derived, applied to their TAM model).
• No CAC, LTV, payback period, or contribution margin disclosed in deck.

Competitors named: Roblox Studio / Fortnite Creative, Unity / Unreal Engine.

Differentiation:

• Accessible to amateurs (no coding required)
• Mobile-available
• Drag-and-drop creation
• $5 vs. $200K–$250K cost per game
• 3–4 hours vs. 6+ months per game
• >400 concurrent players vs. 50–100 (Roblox Studio)

Moat claims: Creator network flywheel (creators → games → players → more creators); AI-assisted coding (MegaCode); multi-platform distribution pre-built in. No patent or data-moat language used.

Team:

• Aleksey Kostarev - GameDev expertise; $20M+ sales business background.
• Katerina Novichkova - Financial function expertise; companies up to $8B revenue.
• Dmitry Semiriazhko - Technology + 80M+ user product background.
• Klavdia Potapova - High-load systems; development team scaling.
• In-house DevTeam - Art production + development; 93M AppStore installs; ex-Joy Bits.

Advisors: Kyu Lee (President COM2US USA, Partner CRIT Ventures, 22+ year veteran); Tyler Kim (VP Xsolla USA); others from Mundfish.

Funding ask: $2M seed.

Use of funds: Product roadmap (AI/text-to-code game dev, immersive social open world, complex physics) + marketing roadmap (viral expansion, product-led growth, 100K user milestone by 1H24).

Roadmap milestones:

• 1H23 (done): First creator generation; voxel graphics + basic game logic.
• 2H23 (done): Start of distribution; game physics + complex object interactions.
• 1H24: First 100K users + referrals; immersive social open world.
• 2H24: Viral expansion + PLG; text-to-code game dev via AI.

Archetype + why: UGC Gaming Platform - MAU-driven 3-statement with cohort revenue build. Megamod's stated monetisation mirrors Roblox (ARPMAU × MAU), with two revenue lines (in-app + game-time). The creator supply side determines game catalog depth which drives player MAU. Model needs both creator-side and player-side cohorts feeding into a single P&L. A 3-statement (IS / BS / CF) is appropriate at seed stage to show path to the $170M ARR target and justify the $2M ask.

Forecast horizon & granularity:

• Monthly granularity for Years 1–2 (2024–2025); quarterly for Years 3–5 (2026–2028).
• Horizon: 2024–2028 to match deck's own projection window.

Key drivers & assumptions:

Scenarios (Base / Bull / Bear - which variables flex):

• Base: Weekly creator growth 0.27% (deck trend), ARPMAU $12, 40% MAU conversion - reaches ~$15M ARR by 2025 as deck projects.
• Bull: Creator growth accelerates to 1%/week post-product-led growth launch (2H24), ARPMAU $15, MAU conversion 50% - exceeds deck targets.
• Bear: Creator growth stalls at 0.1%/week, monetisation delayed 6 months, ARPMAU $8 - $2M ARR by 2025, runway extension needed.

Required sheets / outputs:

1. Assumptions - all drivers with / flags, scenario toggles.
2. Creator Cohorts - weekly creator onboarding, cumulative creators, games per creator, total games in catalog.
3. Player / MAU Build - MAU derived from creator base + organic player growth; retention curve.
4. Revenue - in-app revenue + game-time revenue (MAU × ARPMAU, split by stream); monthly → annual.
5. Income Statement - Revenue, COGS (infra/hosting), Gross Profit, Opex (S&M, R&D, G&A), EBITDA, net income.
6. Cash Flow - Operating CF, capex (minimal for software), financing (the $2M raise).
7. Balance Sheet - simplified; cash is key metric at seed.
8. KPI Dashboard - Creators, MAU, Games in catalog, ARPMAU, ARR, Gross Margin %, Runway (months).
9. Scenario toggle - Base / Bull / Bear switcher tied to assumptions sheet.