PurpleSeed

Building the Steam+ of Web3 - bringing gamers and developers together to fix the broken player journey.

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[PurpleSeed @PurpleSeedCo]

We are beyond excited to announce our first third-party #blockchaingame partnership as part of our platform - @Cng_Carnival 👏🔥

They're an upcoming #PlayandEarn MOBA blockchain game where players customize heroes, compete with others, and reap NFT & tokenized rewards. 🚀

🧵👇

[Mike Fiuk @MLFiuk]

Think the military is using AI to arrive at artillery firing solutions?

I've got both good and bad news for you.

Quick thread on how artillery works.

https://t.co/9wFgXRPzEh

[Mike Fiuk @MLFiuk]

One of the common criticisms of DefenseTech startups is that they don't win a lot of contract dollars compared to what they've raised.

The recent WSJ article, along with many others, make this point & it is made often.

It is an easy criticism to make - natural to picture Hawaiian t-shirt clad bros raising a bunch of VC money, not selling "much" immediately, and judging them for it.

The reality is much more nuanced than that. There's a good reason this imbalance exists and it isn't necessarily a bad thing. The dynamic is a result of:

- Being a startup
- Being in hard / tough tech
- Genuine challenges selling to DoD

This type of imbalance isn't a DefenseTech startup reality, it's a startup reality. If you looked at VC fundraising vs. revenue in a particular year, you'd get the same lopsided balance for most startups across industries. Startups raise more than they make in revenue - it's true across early stage, not just DefenseTech. Raise, spend, drive revenue is the cycle for almost all venture-backed startups.

There's a reason it is called a "burn multiple" and startups typically spend (therefore have to have raised) a multiple of every dollar in revenue they make. It is worse in some industries/verticals than others, but generally true across the board.

DefenseTech startups are also almost always hard or "tough" tech in some way. This same fundraising vs. revenue dynamic is even more acute there - the primary risk as seen by capital allocators for these businesses (unlike SaaS) is engineering and technical. Once that has been overcome and the tech itself has been proven ("prove to me you can build it") then dollars will flow.

The subsequent GTM and business processes are seen as a lesser risk than just building the thing. That's the critical difference vs. software - the tech is obviously compelling if you can build it, whereas in the world of bits it is often only compelling if you can drive adoption / build a moat / get network effects due to low barriers to entry and limited technical differentiation.

There are some holes in that line of thinking for folks selling to DoD, meaning there are material risks around GTM beyond just the technical risks of building, and that brings us to the third point. When selling to DoD (and to an extent the government writ large) there are genuine challenges in driving revenue even with compelling & differentiated tech.

Aligning end users, buyers with funding, and the right contracting vehicles are always challenging, particularly when you are newer to market (a startup) and don't have the existing network and ground presence established players do. There are a few emerging playbooks to overcome this, see what Anduril and Vannevar have done, but they'll almost always involve a deliberate bet on technology and/or investment in GTM ahead of real revenue traction.

That's where the genuine criticism comes in - beyond just needing enough capital to grow (like all startups do) and the capital needed to build physical tech (like all tough/hard tech startups do) you can argue there's an even greater amount needed and/or even greater lag to revenue when selling to DoD.

Now I'm biased, but I'd argue the size of the opportunity and the ability to rapidly expand once you have initial traction more than compensate. You also have the sense of mission and ability to deliver real human impact, but it is fair to question and challenge the scale of dollars needed to successfully break into DoD / government markets. Just important to pose those questions within the right context that exists for startups and tough tech broadly.

What's the takeaway? Don't get trapped by the headline and think that raising capital ahead of winning contracts & earning revenue is necessarily bad for, or even unique to, DefenseTech startups.

Do question how much will be needed, to secure what opportunities, and if that business model and approach is worth it for your startup (or one you are considering betting on).

https://t.co/0SzeusWqXQ

[Mike Fiuk @MLFiuk]

Pricing digital assets (NFTs) is a guessing game & there's no rhyme or reason.

It's all driven by hype, FOMO, & vibes.

Right?

That's what the anti-crypto crowd would have you believe, but it turns out you can price them like any other asset - you just need a framework.

A 🧵

[Mike Fiuk @MLFiuk]

Achieving meaningful returns in venture is hard.

Achieving outsized returns (~3x or greater TVPI [total value to paid in] by many definitions) is very rare.

CalPERS is one of the largest investors in the world & has access to the best venture funds you can think of. Access or resources are not a problem for them.

Their mean TVPI was 1.57 over a decade ('99 - '09).

[PurpleSeed @PurpleSeedCo]

@MLFiuk LFG!!🚀🚀

[Mike Fiuk @MLFiuk]

“Let it rip” in 2024.

[PurpleSeed @PurpleSeedCo]

@MLFiuk @whatslukedoing @pixels_online @gam3sgg 👏👏

[Mike Fiuk @MLFiuk]

Huge congrats to @whatslukedoing and the entire @pixels_online team on winning Best Casual Game as the @gam3sgg awards!

Amazing to see a Made by Apes (official license holders!) game do so well and bring so many fun moments to their community.

[Mike Fiuk @MLFiuk]

The GTA VI trailer just dropped. Already tens of millions of views, tons of excitement, and rave reviews.

Somehow @RockstarGames always seems to hit it out of the park with these - GTA San Andreas, GTA IV, V etc.

How?

🖼️Incredible aesthetics
📒"Just enough" depth to tease core narratives (aka you want to know more)
🎸High-energy, on-theme soundtrack
🧙‍♂️Conveying the feeling of a grand experiment you can be a part of

It's the perfect balance of making you excited about what's there while still being curious about what is not.

[Mike Fiuk @MLFiuk]

Brian has done incredible things for Web3, particularly in the US.

In his recent post, he highlights 10 ideas he's most excited about now.

#5 on the list? A "Job/Task Marketplace for Crypto"

Well Brian - you're in luck. That's exactly what we're building @SquadTalent .

[Mike Fiuk @MLFiuk]

Gaming is one of the best applications of blockchain technology today.

A common view is that Web3 & blockchain tech are solutions searching for a use case.

That's frequently the case.

But gaming is a natural fit for the actual value prop of blockchain tech.

How?

🧵👇

[Mike Fiuk @MLFiuk]

Web3 as an industry & blockchain as a technology will continue to become more present in our daily lives.

America cannot afford to scare away Web3 innovation with unclear regulation and drive builders offshore.

Loved sharing this & other views with the @FOUND3RUSA community.

[PurpleSeed @PurpleSeedCo]

What bear market?

[Mike Fiuk @MLFiuk]

Sad to see our friends at @cardinal_labs shutting down, but kudos to them for taking such a thoughtful approach & supporting users as they wind down.

Of note, their code is open source and which should allow builders to continue driving NFT utility using their infrastructure.

[Mike Fiuk @MLFiuk]

People love to engage with great IP that is fun to play/build/explore/consume.

Digital worlds unlock so much of that, be it a #Web3 version or some of the successful “legacy” players like Roblox.

Takeaway for founders? Same as it has always been - make something people love.

[Mike Fiuk @MLFiuk]

A Web3-native combo that leverages the best aspects of Twitch and Clash of Clans?

It may sound over-hyped, but that's what is on the table with the recently announced @fractalwagmi x @LeagueKingdoms partnership

🧵👇 on the strategy behind the announcement

[Mike Fiuk @MLFiuk]

Unless you're living under a rock, Dookey Dash is all over your feed

Given the simple gameplay & cartoonish graphics, you might think it is a rare miss from @yugalabs. It has "Dookey" in the title after all

Turns out the release & positioning are another master stroke

🧵 👇

[Mike Fiuk @MLFiuk]

In building out their "Interoperable Blockchain Game" @illuviumio recently released an Alpha version of their #NFT land gameplay - Illuvium Zero.

3 🔑 elements that worked well:

👏Simple & engaging play loop
🎮Cross-game connections
🎨Retains the core brand "feel"

🧵👇

[Mike Fiuk @MLFiuk]

The recent hack of @NFT_GOD is tough to hear about - someone who is deep in the space, tech savvy, & knows what they're doing still falling victim.

Definitely a lesson here on security & wallet hygiene, but also on how to handle meaningful setbacks. (1/3)

[Mike Fiuk @MLFiuk]

Hope you enjoyed reading some of my #Web3Gaming winners for 2022 - be on the lookout for predictions for winners in '23!

(shamelessly copying @theallinpod's format - looking for a @DavidSacks type sparring partner too)

https://t.co/PozxC8HQo9