Rovello: Raising Series A with significant cash enabled future buyout terms
Jessica Rovello · She Hit $12m in Revenue, Raised $5m in VC, Then Just Bought Out Investors, How?! · Dec 3, 2020 · at 20:23
Arkadium co-founder Jessica Rovello details the leverage that allowed the digital gaming company to negotiate favorable investment terms and eventually buy out its Series A venture investors.
0:00 / 0:14exact quote · 14.4s
720p mp4 · rendered on demand · StarZero watermark
“We were not in a place where we raised when we were at less than zero. We already had significant cash on the balance sheet when we raised, and that's how we were able to raise on terms that allowed us to eventually put us in a position to buy out our series A.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Jessica Rovello
Rovello: Gamified data collection will become harder to monetize due to privacy
“That's something that we'll see what the lifespan of that type of gamified data collection is based on how privacy is trending in the United States and certainly abroad.
It,
That becomes a more and more difficult thing to be able to monetize.”
Rovello: Casual mobile games cost studios upwards of $1M to make
“Games, I mean, even casual games that people play on their mobile phones can cost upwards of a million dollars for a studio to make, if not more.”
Rovello: Arkadium historically maintained 10% to 20% EBITDA margins
“We've always done somewhere between, I would say, 10 and 20% EBITDA margins.”
Rovello: Arkadium reached approximately $15M in revenue in 2018
“2018.
We were in the fifteen million dollar, just around 15.”
Rovello: Arkadium had no revenue for three years before hitting $600K
“I mean, we didn't have revenue for the first three years, I would say. Yeah, first two to three years, no revenue. And then when probably in the third or fourth year that we actually started making revenue, and then it scaled fairly quickly. Probably the first…”