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Visionary Realms Secures Series A Funding - Pantheon: Rise of the Fallen - MMORPG.com

2

Comments

  • postlarvalpostlarval Member EpicPosts: 2,003

    Distopia said:

    While this sounds like great news, I just wonder how far out of the realm of needing crowdfunding this puts them? Will they still make their return to KS and the like?



    I think people should be more concerned about them selling off preferred stock for finding. Preferred stock has special liquidation and voting rights that make the company less attractive to other companies looking for acquisitions.

    Preferred stock helps protect you and the less you have, the more likely other companies who want to play in your ball field are willing to do an end run past you and appeal to your common shareholders directly. If the other company can convince them that they are in a position to make the shareholders more money, then you can lose your company. Welcome to the world of hostile takeovers.

    Never underestimate the power of greed by companies like Blizzard.

    It's a little worrying and you would think they were warned about it. Personally, I would have looked for a direct fuding source.
    ______________________________________________________________________
    ~~ postlarval ~~

  • KyleranKyleran Member LegendaryPosts: 44,059
    edited April 2017



    CrazKanuk said:













    Hey, thanks for that, I wasn't aware that this was said. I mean I'm sure anything could happen, but I'm glad that they, hopefully, expressly looked at investors who were interested exclusively in their vision. Kinda hoping that they don't need to do Series B, to be honest. Fewer cooks in the kitchen. 






    OK, I had to do a Google search, seems we're off base and they definitely need to do Series B funding, as that stands for "Build" and is not related to the financial instrument used.

    Check out this link for a good explanation of what Series A, B and C funding really mean when dealing with venture capital.

    For those interested, here's what Series A funding typically means: (being a fantasy game I guess they found some "unicorns")  :)

    Optimize: Series A



    After the business has shown some of a track record, Series A funding

    is useful in optimizing product and user base. Opportunities may be

    taken to scale the product across different markets. In this round, it’s

    important to have a plan for developing a business model

    that will generate long-term profit. Often times, seed startups have

    great ideas that generate a substantial amount of enthusiastic users,

    but the company doesn’t know how it will monetize

    on them. Typically, Series A rounds raise approximately 2 million to 15

    million, but this number has increased on average due to high recent

    tech industry valuations, or "unicorns".


    "True friends stab you in the front." | Oscar Wilde 

    "I need to finish" - Christian Wolff: The Accountant

    Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm

    Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV

    Don't just play games, inhabit virtual worlds™

    "This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon






  • MendelMendel Member LegendaryPosts: 5,609

    Nanfoodle said:



    Mendel said:


    This is good news for Pantheon.  I just wish they had approached financing like this in the first place.  Maybe the fact that there is traditional funding for big games will persuade future companies to pursue more traditional routes, rather than immediately jumping to the various crowd-funding sources.

    Sure, traditional funding takes more organization, planning and preparation, but don't we gamers want those types of people making games for us?  I think we probably should.






    Sounds all nice but Pantheon did it the right way for what they were doing. No Development team has looked at making a CC, DPS, Support, Tank game like EQ1 since DAoC. Fans of that type of game has not been considered worth funding in 18 years. Someone needed to make a leap of faith and prove that type of fan base is still out there and VR proved that to be true. How? By making it this far off fans who want this game made. Of course investors are now going, wait a min, there is money to be made here. Can I get in on the action. I thank VR for looking at gamers like me and said "We will make a game for you"


    Except that funding isn't proof that this market exists.  It does suggest that there are people now willing to put up money in order to find out.  I understand your enthusiasm, but lets not exaggerate this beyond its significance.

    I wonder how much of the company was sold to secure this funding and who were these investors?  Professional investors?  Friends of Brad's wife?  I've not heard of VR going public, so I'm doubting that the SEC is/was involved, and this is more private financing.

    Logic, my dear, merely enables one to be wrong with great authority.

  • NanfoodleNanfoodle Member LegendaryPosts: 10,901

    Kyleran said:





    CrazKanuk said:
















    Hey, thanks for that, I wasn't aware that this was said. I mean I'm sure anything could happen, but I'm glad that they, hopefully, expressly looked at investors who were interested exclusively in their vision. Kinda hoping that they don't need to do Series B, to be honest. Fewer cooks in the kitchen. 








    OK, I had to do a Google search, seems we're off base and they definitely need to do Series B funding, as that stands for "Build" and is not related to the financial instrument used.

    Check out this link for a good explanation of what Series A, B and C funding really mean when dealing with venture capital.

    For those interested, here's what Series A funding typically means: (being a fantasy game I guess they found some "unicorns")  :)

    Optimize: Series A




    After the business has shown some of a track record, Series A funding


    is useful in optimizing product and user base. Opportunities may be


    taken to scale the product across different markets. In this round, it’s


    important to have a plan for developing a business model


    that will generate long-term profit. Often times, seed startups have


    great ideas that generate a substantial amount of enthusiastic users,


    but the company doesn’t know how it will monetize


    on them. Typically, Series A rounds raise approximately 2 million to 15


    million, but this number has increased on average due to high recent


    tech industry valuations, or "unicorns".




    That was helpful. Thanks!
  • SinsaiSinsai Member UncommonPosts: 405
    Very Nice !
  • Tiamat64Tiamat64 Member RarePosts: 1,545

    Kyleran said:



    OK, I had to do a Google search, seems we're off base and they definitely need to do Series B funding, as that stands for "Build" and is not related to the financial instrument used.

    Check out this link for a good explanation of what Series A, B and C funding really mean when dealing with venture capital.

    For those interested, here's what Series A funding typically means: (being a fantasy game I guess they found some "unicorns")  :)

    Optimize: Series A




    After the business has shown some of a track record, Series A funding


    is useful in optimizing product and user base. Opportunities may be


    taken to scale the product across different markets. In this round, it’s


    important to have a plan for developing a business model


    that will generate long-term profit. Often times, seed startups have


    great ideas that generate a substantial amount of enthusiastic users,


    but the company doesn’t know how it will monetize


    on them. Typically, Series A rounds raise approximately 2 million to 15


    million, but this number has increased on average due to high recent


    tech industry valuations, or "unicorns".




    So..... assuming I'm reading that right, all this means is that they now have enough money for a business model, but there's still funding for basically the entirety of the game left to do?

    Well, a step is a step at least, I guess.
  • OyjordOyjord Member UncommonPosts: 571
    Help us Pan-theon, you're our only hope!
  • MendelMendel Member LegendaryPosts: 5,609

    Kyleran said:





    CrazKanuk said:
















    Hey, thanks for that, I wasn't aware that this was said. I mean I'm sure anything could happen, but I'm glad that they, hopefully, expressly looked at investors who were interested exclusively in their vision. Kinda hoping that they don't need to do Series B, to be honest. Fewer cooks in the kitchen. 








    OK, I had to do a Google search, seems we're off base and they definitely need to do Series B funding, as that stands for "Build" and is not related to the financial instrument used.

    Check out this link for a good explanation of what Series A, B and C funding really mean when dealing with venture capital.

    For those interested, here's what Series A funding typically means: (being a fantasy game I guess they found some "unicorns")  :)

    Optimize: Series A




    After the business has shown some of a track record, Series A funding


    is useful in optimizing product and user base. Opportunities may be


    taken to scale the product across different markets. In this round, it’s


    important to have a plan for developing a business model


    that will generate long-term profit. Often times, seed startups have


    great ideas that generate a substantial amount of enthusiastic users,


    but the company doesn’t know how it will monetize


    on them. Typically, Series A rounds raise approximately 2 million to 15


    million, but this number has increased on average due to high recent


    tech industry valuations, or "unicorns".




    The peculiar thing I see is that the VR statement states that they have "secured a round of Series A funding, indicating that preferred stock has been sold for investment purposes."   @Kyleran's description of Series A funding is good, but the "preferred stock" portion isn't generally something I've associated with this type of investment.  Typically, preferred stock pays dividends before common stocks, and usually has rights on corporate assets in case of failure.  http://www.investopedia.com/terms/p/preferredstock.asp .  Preferred stock without voting rights seems very much at odds with the investors I've known and the purpose of the Series A funding process.

    Depending on the specific Series A investor, the operative phrase may become 'to scale the product across different markets.' (from Kyleran's quoted text of Investopedia)

    On the positive side, in case VR fails (something I do not expect), there is an investor with a claim to the game who may choose to continue the project.

    Logic, my dear, merely enables one to be wrong with great authority.

  • SavageHorizonSavageHorizon Member EpicPosts: 3,480
    You can't keep a good horse down, go on Brad and team.




  • NanfoodleNanfoodle Member LegendaryPosts: 10,901
    A dev on Pantheon forums said to not judge where Pantheon's development is by what these sites say about ABC funding stages. Seems it can be different company to company. They are more like rough guide lines.
  • NanfoodleNanfoodle Member LegendaryPosts: 10,901
    Here is a link if you want to read for yourself. Was also mentioned this new investment will speed the time line to when they start testing.


    https://www.pantheonmmo.com/content/forums/topic/5934/series-a-funding-for-pantheon-is-now-complete/view/page/2
  • WellspringWellspring Member EpicPosts: 1,464
    How much money was invested? It could be a large or small amount. Hard to celebrate without knowing more details.
    --------------------------------------------
  • NanfoodleNanfoodle Member LegendaryPosts: 10,901


    How much money was invested? It could be a large or small amount. Hard to celebrate without knowing more details.


    I think we may never know for sure. My guess is its not a small amount as they will be hire more staff. Staff is one of the most costly sides of making any video game. We will get a better picture when we see how many people they hire over the coming months. 
  • CatibrieCatibrie Member UncommonPosts: 87
    Sounds like a good time to pledge as this is looking more and more like a sure thing. I'm sure Alpha and Beta slots end up going fast.
  • KyleranKyleran Member LegendaryPosts: 44,059

    Mendel said:



    Kyleran said:







    CrazKanuk said:



















    Hey, thanks for that, I wasn't aware that this was said. I mean I'm sure anything could happen, but I'm glad that they, hopefully, expressly looked at investors who were interested exclusively in their vision. Kinda hoping that they don't need to do Series B, to be honest. Fewer cooks in the kitchen. 










    OK, I had to do a Google search, seems we're off base and they definitely need to do Series B funding, as that stands for "Build" and is not related to the financial instrument used.

    Check out this link for a good explanation of what Series A, B and C funding really mean when dealing with venture capital.

    For those interested, here's what Series A funding typically means: (being a fantasy game I guess they found some "unicorns")  :)

    Optimize: Series A





    After the business has shown some of a track record, Series A funding



    is useful in optimizing product and user base. Opportunities may be



    taken to scale the product across different markets. In this round, it’s



    important to have a plan for developing a business model



    that will generate long-term profit. Often times, seed startups have



    great ideas that generate a substantial amount of enthusiastic users,



    but the company doesn’t know how it will monetize



    on them. Typically, Series A rounds raise approximately 2 million to 15



    million, but this number has increased on average due to high recent



    tech industry valuations, or "unicorns".






    The peculiar thing I see is that the VR statement states that they have "secured a round of Series A funding, indicating that preferred stock has been sold for investment purposes."   @Kyleran's description of Series A funding is good, but the "preferred stock" portion isn't generally something I've associated with this type of investment.  Typically, preferred stock pays dividends before common stocks, and usually has rights on corporate assets in case of failure.  http://www.investopedia.com/terms/p/preferredstock.asp .  Preferred stock without voting rights seems very much at odds with the investors I've known and the purpose of the Series A funding process.

    Depending on the specific Series A investor, the operative phrase may become 'to scale the product across different markets.' (from Kyleran's quoted text of Investopedia)

    On the positive side, in case VR fails (something I do not expect), there is an investor with a claim to the game who may choose to continue the project.



    Well keep in mind what I posted isn't gospel, and I'm sure specifics vary with different funding efforts.

    But we probably can be sure additional funding will be necessary to complete the game.

    "True friends stab you in the front." | Oscar Wilde 

    "I need to finish" - Christian Wolff: The Accountant

    Just trying to live long enough to play a new, released MMORPG, playing New Worlds atm

    Fools find no pleasure in understanding but delight in airing their own opinions. Pvbs 18:2, NIV

    Don't just play games, inhabit virtual worlds™

    "This is the most intelligent, well qualified and articulate response to a post I have ever seen on these forums. It's a shame most people here won't have the attention span to read past the second line." - Anon






  • postlarvalpostlarval Member EpicPosts: 2,003

    Torval said:

    It means they have backers who have confidence in their business model and the market potential of their target demographic. The backers can see the potential for a reasonable long term return on their investment.



    This is a good representation of how it works...

    http://fundersandfounders.com/how-funding-works-splitting-equity/
    ______________________________________________________________________
    ~~ postlarval ~~

  • VrikaVrika Member LegendaryPosts: 7,990
    There's something strange with their announcement:
      http://visionaryrealms.com/visionary-realms-closes-series-a-funding-for-highly-anticipated-videogame-pantheon-rise-of-the-fallen/

    "Series A funding allows the company to ... bring the game into a semi-private pre-alpha state"
    "Pantheon: Rise of the Fallen is scheduled to enter into public testing later this year"

    I read that as Series A funding being scheduled to run out before public testing phase later this year.
     
  • VrikaVrika Member LegendaryPosts: 7,990
    edited April 2017


    CrazKanuk said:
    I think that's the point...... People DON'T invest in something unless they're confident that they can make their money back.




    No.

    Investors who invest into something like this are typically high risk takers. They accept that 4 out of 5 of their investments will turn out to be bad, because if even one is successful they can get high enough profits to offset their losses.
     
  • TheelyTheely Member UncommonPosts: 430
    Funding is probably from Smedley, who will be brought into the fold and destroy everything from the inside.
  • SavageHorizonSavageHorizon Member EpicPosts: 3,480

    Vrika said:




    CrazKanuk said:
    I think that's the point...... People DON'T invest in something unless they're confident that they can make their money back.






    No.

    Investors who invest into something like this are typically high risk takers. They accept that 4 out of 5 of their investments will turn out to be bad, because if even one is successful they can get high enough profits to offset their losses.




    You mad because you thought the game would never see the light of day. Even madder because it's looking more and more like Brad and team are going to pull it off. 

    Good thing for you is you don't have to spend a penny, you will even get a free trail. If you like the game you can buy the game and pay a sub like the rest of us.. 


    Great ain't it. 




  • KumaponKumapon Member EpicPosts: 1,605
    That is such great news.

    WOW I can't believe Pantheon has made it this far. So many set backs but Brad and Co. never gave up. To be honest, if you had told me two years ago that this game would have come this far I would have laughed.


  • ChildoftheShadowsChildoftheShadows Member EpicPosts: 2,193

    Torval said:

    Hmm, I wonder if they'll stick with Unity long term then or use it for prototyping.


    Good lord, why would you even think that? 1. There's literally no reason not to use it and 2. Switching isn't fun and wouldn't be worth it.
  • AnthurAnthur Member UncommonPosts: 961
    Good news. But please VR, stay focussed on your current goals and don't blow up your feature list just because of more money, like some other crowdfounded games do. ;)
  • ChildoftheShadowsChildoftheShadows Member EpicPosts: 2,193

    DMKano said:














    Torval said:





    Hmm, I wonder if they'll stick with Unity long term then or use it for prototyping.






    Good lord, why would you even think that? 1. There's literally no reason not to use it and 2. Switching isn't fun and wouldn't be worth it.









    There are plenty reasons on where Unity does not scale well out of the box - one main one is network code for MMOs is where Unity frankly sucks.

    If you have solid net code engineers no big deal as they can code their own, but just one major area where Unity is lacking as far as scaling to large numbers of players.


    There's something wrong with every game engine.
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