tinyBuild

Will be looking deeper into this long-term focused gaming developer/publisher

“We are a global developer and publisher of video games with a long term goal of becoming a media company where our franchises live in media formats that are relevant 10, 20, 30 years from now. That is our overall goal and strategy.”

TinyBuild main strategy is to teams up with independant game developers (aquihiring) to build franchises with strong IP. Then further develop those franchises and IP to have long successful lives expanding beyond video games into books, comics, animation series, etc. Hence expanding the life and revenue sources of the IP.

“We find really talented groups of people, independent game developers, and we partner up with them to build something bigger”.

TinyBuild does not buy something as an exit for that founder. They are joining forces with the creators to build something together. The joining party is compensated through a combination of cash and stock incentives.

So, they look for creative ideas and help the creators scale up their efforts. They bring structure and finance to help develop the ideas and maximize the potential.

Write ups:

• https://www.firmreturns.com/tinybuild-stock-analysis/

• https://breeleycapital.substack.com/p/tinybuild-building-something-big

Main games (IP) to review:

• Hello Neighbour

• Streets of Rogue

• Totally Reliable Delivery Service

• Deadside (GaaS-project)

Things to look into:

• Back catalogue contributed 83% of revenue in FY2021

• Started signing deals with companies like Microsoft to bundle games into their subscription services (e.g. Xbox game pass)

• 49% stake in DevGAMM LLC, an Eastern European focused game development conference

• Shareholders are diluted through issuing equity when doing the aquihires.

• Strong relationships with over 10,000 verified influencers

• Significant social media presence as a strategy

• Spend less than 7% of annual revenue on marketing

• Strong sense of loyalty among employees

• Software development costs - understand them and their amortization

• Surchased intellectual property - understand it and its amortization

• Co-founder quit - why?