USA 2016Video Coverage

Amy Huang-Lee: Top Investments, From East to West | Casual Connect Video

October 8, 2016 — by David Radd

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USA 2016Video Coverage

Amy Huang-Lee: Top Investments, From East to West | Casual Connect Video

October 8, 2016 — by David Radd

Convince them that this is a positive investment. - Amy Huang-LeeClick To Tweet

With Asia currently trending in the games market, companies both within and outside the region take a closer look at all possible opportunities related, including investments. The right investor can not only bring you the right user platforms, but also the right relationships to other potential partners. Amy Huang, AVP of NetEase Capital, whose portfolio consists of top game studios which span the world, dived into these questions in their session at Casual Connect USA 2016. “When you are building your financial forecast, you want to be realistic in the predictions. What you can deliver based on the metrics that you already know about your game and then you do the math for them. Convince them that this is a positive investment. That is something that very much aligns the expectations”, they explained.


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Netease gamesAmy Huang-Lee is the AVP for NetEase Capital. They’ve worked in the Chinese mainland for over 10 years, dealing with strategy, operations, and retail merchandising. After working mostly in the jewelry business for years, they shifted focus to mobile games, ecommerce, and technology at NetEase Capital, where they’re focused on helping startups grow in China and other regions.

“NetEase Capital is focused on investing in top talents around the world in game development. The core DNA of our company is game development,” said Amy. “We have been Blizzard’s partner in China for many years, have successfully launched and operated many of their games in the China market. My role at NetEase Capital is not only to find these top studios around the world, but also help them grow and adapt to the changing markets.”

Evaluating with Universal Standards

Despite the geographic and cultural differences between a studio located in China compared to the U.S., Amy indicates that there are more similarities that differences when looking to make an investment. It all comes down to the quality of that studio’s work.




“We use a universal standard when evaluating game studios, regardless of geographic location,” Amy said. “We look at fundamentals such as the core team’s development track record, their future game pitch, concept and depth of their game design, potential market size. Then we spend a lot of time talking to the team to get to know them. Ultimately, it’s a match of capability and values.”

It’s a match of capability and values. regardless of geographic location.

On the subject of Chinese companies investing in Western developers, there has to be a good reason behind it, rather than just doing it for its own sake. “The rise of mobile games has really helped game entertainment cross geographic boundaries, much more so than console or PC games has done in the past,” they said. “Chinese developers, publishers, and game services are able to reach the global market in the mobile space. Finding the right investment target would help Chinese companies cross that bridge into the Western market. However, there remain a lot of cultural, value, and operational differences between the east and the west.”

“Again, the strategic motivations for a Chinese investor would determine the investment stage of the target company,” they noted.







There has to be a good reason for a Chinese company behind investing into a Western one.

What to Consider with M&A

When it comes to a Chinese company considering M&A with a studio in the West, there are multiple goals depending on the sort of merger. Besides the price, Amy says it depends on the end goal of the M&A.

“If a company wants to invest in development talent, indie or established studios can both offer that,” Amy notes. “But if a Chinese company wants to acquire a studio for existing IP, revenue, or user channels, then a mature company would make a lot more sense.”




Aligning Expectations Accordingly for StartUps

Amy_2016From the other half of the table, Amy suggests gaming startups looking to raise money to manage internal expectations and do their due diligence. “Talk to as many industry peers as possible, learn from those who can offer insight or advice about Chinese partners, understand your potential partner’s capabilities and motivations, and align your expectations accordingly,” Amy said.

“Strategic investment means multi-year collaboration. If you don’t like your partner, or don’t agree with their values or goals, the next few years of your life will be very painful. I remember a piece of advice from another publisher at a conference: a publisher is not your ATM. Signing an offer is not instant guarantee of cash and success. Many factors will ultimately determine the success of your game, some of which are not even within your sphere of control,” they detailed. “So manage your expectations accordingly.”

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David Radd

David Radd

David Radd is a staff writer for GameSauce.biz. David loves playing video games about as much as he enjoys writing about them, martial arts and composing his own novels.

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