David Helgason, co-founder of Unity 3D, explains why established top-tier venture capital firms possess higher risk tolerance for unusual deals.
Insight
Helgason: Software pricing tiers are effectively under $1,000 or over $100,000
“There's two prices. There's up to a thousand bucks, and then there's over a 100,000 dollars. If you go past a thousand bucks, then you have to kind of go and do a dog and pony show, and you're just going to support them and hang out with them. And by the time …”
Prediction Partly held up
Helgason: Augmented reality will be massive and almost entirely business-focused
“It's going to be massive. It's going to be massive in a very different way. Whereas VR, I think, is all entertainment. Business users that are sort of entertainment-like, you know, kind of looking at products and things like that. Whereas AR, AR is going to be…”
Insight
Founders lacking confidence in scaling their team should consider selling
“So if you don't feel confident that you can evolve through your team, then definitely consider selling.”
Insight
Helgason: User-friendly platforms win through high volume at low price
“If you have a user-friendly platform, and everything else in your industry is really not user-friendly, you could maybe, instead of, You know, selling it a few times for a lot of money. You could sell it for a little bit of money a lot of times.”
Prediction Held up
Helgason: Console gaming is not dying and will remain a healthy market
“No, I mean, like there's sort of, there's been that rumor and expectation, but I mean, the console guys kind of reinvented themselves. They opened their platforms up more. Seems to be no end to that, which, you know, I think is good because frankly you know, f…”
Opinion
Helgason: Overreliance on microtransactions creates an unhealthy gaming monoculture
“It's really just healthy for the ecosystem to have, like, many different ways of monetizing, and, you know, it's become a bit too much of a monoculture in some ways, like, the people that are making all the money are doing the same thing with microtransactions…”