Next Island
The first 3D virtual world for the mass market
Launching Sept 2010
A Next Generation Virtual World
• Advanced 3D graphics technology
- Crytek2 engine
• Real Cash Economy
- Currency linked to the Bank of Sweden
• Time Travel
- First virtual world with time travel
• Mass-market focus
- New & casual gamers, virtual world enthusiasts
July 14, 2010 Copyright © 2010 Next Island 2
A Perfect Storm
Avatar Farmville
Wildly Successful Film Casual World
Next
Island
Crystal Palace
$330k Virtual Sale
July 14, 2010 3
Industry
• Rapid Market Growth
- Multi-billion dollar industry with 15% monthly growth
- Success of Habbo, Linden Labs, Zynga
- Currently a niche market, soon to be mainstream
• Market Evolution
- Casual Worlds Creation of a new sector
• New gamers looking for more
Casual Games Facebook Farmville Virtual Worlds
July 14, 2010 Copyright © 2010 Next Island 4
Calypso & the Entropia Universe
• Entropia is a virtual world platform
- 1st: Calypso
- Next: Next Island
• Proven Revenue Model
- Calypso profitable since 2004
• Proven game play mechanics
• Revenue Share with Entropia platform
July 14, 2010 Copyright © 2010 Next Island 5
Competitive Positioning
Advanced
3D, Physics
Casual Intense
Virtual Worlds MMO Gaming
Simple
July 14, 2010 6
2D, Flash
The Next Island Advantage
• The first video game with Time Travel
- First destination: Ancient Greece, Olympics,
Mythology (new TT destinations every 3
months)
• More advanced 3D graphics
- Best of any virtual world with stunning scenery
like World of Warcraft
• Real Cash Economy
- Banking license backs user accounts
- First virtual world with this feature
July 14, 2010 Copyright © 2010 Next Island 7
The Next Island Advantage
• Improved Gameplay
- Larger world, more content, more social
interaction
- Noob friendly
- 200 virtual professions, time travel
- Quests
• Tease market with iPhone, Facebook,
iPad game based on backstory
• Concentrated Marketing Effort
- TV mass-marketing, social networks
July 14, 2010 Copyright © 2010 Next Island 8
Targeted Users
• Casual gamers - Facebook gamers,
Farmville, iPhone gamers
• Noobs – new to gaming
• Women Gamers
• Second Life, Maple Story, Runescape
• Current Calypso players
• More than 200 million in these markets
July 14, 2010 Copyright © 2010 Next Island 9
Marketing Plans
• Television
- Katlean (TV personality) on National TV
• Heavily promoting Next Island
• This is in-place
• Facebook, iPhone adventure game based
on backstory
• Promotions and Giveaways
- Starter kits, free virtual goods
• Strategic Partnerships
• Social Media advertising and contests
July 14, 2010 Copyright © 2010 Next Island 10
Business Model
• Average active user spends $20/month
• 20 hours of game play, $1 spent per hour
• Based on Calypso proven business model
• Revenue Sources
• Virtual item purchase & repair, virtual services
• Fees for P2P virtual world transactions
• Game card sales, corporate destinations,
advertising, and sponsorships
July 14, 2010 Copyright © 2010 Next Island 11
Financial Projections
(in thousands & thousands of USD)
Year 1 2 3 4 5
Active Users 15 157 349 538 828
Revenue $1,847 $18,895 $41,988 $64,597 $99,380
Op. Expense ($120) ($156) ($203) ($264) ($343)
Op. Income $1,727 $18,739 $41,785 $64,333 $99,037
July 14, 2010 Copyright © 2010 Next Island 12
Financing
• Over $1.4 Million invested by insiders
- Funded primarily by CEO David Post + other insiders
- 3 Years Development time
• Finished & polished game ready for launch
• Company just completed $400k investment -
convertible bridge loan
• Expanding this round to $1 million – valuation
below $6 million
• Looking at possible $3M Series A round,
although might not be necessary
July 14, 2010 Copyright © 2010 Next Island 13
Management Team
• David Post, CEO serial entrepreneur w/proven track
record and each led an emerging industry
- Page America (sold for ~50x)
- Cellular Systems (sold for ~150x)
• Katlean De Monchy, Spokesperson TV
personality
• Erik Reynolds, Marketing/PR iPhone app developer
• Jon “Neverdie” Jacobs, Studio Chief
July 14, 2010 Copyright © 2010 Next Island 14
Summary
• Rapidly expanding virtual world industry
- The next step in digital entertainment
• More advanced than other virtual worlds
- Better graphics, polished interface, more fun
• Proven technology and revenue model
• Experienced team with great track record
• Potential for awesome investor returns
July 14, 2010 Copyright © 2010 Next Island 15