Project Cost: RM 600,000

Amount Invested : RM 40,000

Amount Required : RM 500,000

Knowledge / Experience Required:
strategy
finance
production

Proposed Investor’s Role:
as mentor
as consultant
others (Director)

Industry: informatics / multimedia

Project Stage:
seed
start-up

EXECUTIVE SUMMARY:

Company History:

Silver Halberd Entertainment Sdn. Bhd. is a start-up company that specialize in development and commercialization of creative and digital content. Established in Jun 2013, our main business activities include but not limited to development of digital games for personal computers (PC) and mobile platform.

Product / Service Description:

Currently we are in development of a 4X Space Strategy game for the PC. We are using Unreal Engine 4 as our main platform. While we are in the initial stage of development, we have a game design document ready to be view. We do not wish to explain the game here as it is considered our intellectual property.

Business Opportunity:

There are many game development companies in the world but few in Malaysia. With lower ringgit and a high dollar, our production cost has been minimize to cater to a small size production team. 4X strategy games are very popular in the market where around 3,000,000 units of a game has been sold yearly.

Revenue Model:

As a rule of thumb, we will use production model as our revenue model. One Master game will be created where online distribution will distribute it to customers. Each game will be sold to customers based on agreed amount.

Management Team:

Producer/Lead Game Designer – Azhan (will be official hired in a month)
Programmer – Bernhard (will be official hired in a month)
Concept Artist – Ryan (will be official hired in a month)

Current Status:

We are currently still a new company and we are looking for investment to realize our business. We are looking for RM 500,000 to develop and grow our business . Currently only RM 40,000 of investment is made. We are also currently waiting for approval for our MSC status.

Funding Milestone: Computer Game

Milestone 1, 2015 Q3, Concept Design and Gameplay R&D
Milestone 2, 2015 Q4, Alpha Development
Milestone 3, 2016 Q1, Presentation to the public foe feedback and pre sales
Milestone 4, 2016 Q2, Beta Development and testing
Milestone 5, 2016 Q3, Release

Business Valuation:

In exchange for the capital from Angel Investor or venture capitalist, we are willing to share equity up to 40% of the company, with the option of share buyback in the future. The equity percentage is limited to amount invested in the company

Expected Return On Investment:

We expect for an annualized return of 25%, with a percentage gain of 40% from initial investment. The investment period is between 1 to 2 years.

Investment Risk and Mitigation:

Like any other business in the world, we have investment risk associate to our business model.

1) Cash Flow & Liquidity Risk – While we budgeted our expenses to range between 500,000 to 600,000, we may be inclined to be subjected to certain expenses not included in our budget. We will inform investor at least 1-3 month before the said expenses occur and reasons behind it.

2) Operational Risk – We currently have a team of 3 to kickstart our business. However this number will be increase to 9. Finding talent familiar with PC development maybe hard in Malaysia since there isn’t many established game development companies located here. Therefore, we may be inclined to hire more foreign talent.

3) Business Environment Risk – We are mainly targeting international market for our game sales. Due to this fact, game sales may not be as high as we projected. Our sales figure are based on similar games in the market during the past 5 years.

Exit Strategies: Several Exit Strategy :

1) Share buyback – We will repurchase shares based on either market price or initial investment price. Right of first refusal applies.
2) IPO – In the event IPO, investors are able to sell their shares in the open market.
3) Merger & Acquisition (M&A) – We will sell the company to a bigger game development company.

All the details, will be included in the term sheet.

CONTACT PERSON

Azhan Bin Kamarudin
Silver Halberd Entertainment Sdn. Bhd.
Sg. Buloh, Malaysia