Dun Rite Games: Mobile games dun rite: created by gamers, for gamers

Dun Rite Games is an indie developer with big plans and the right ethos that can fill a much needed gap in the mobile gaming market. As an avid gamer myself I have followed one of the founders, Jake, as he created YouTube content for several mobile games for years, so when he announced he was going to rectify the mistakes of other developers and fix the free to play mobile gaming market I sat up and took note. What convinced me into investing was that his passion and great ideas were matched by the drive, enthusiasm and experience of his business partner, Bato. Together they have proven to me that they have the right strategy and plan in place to turn Jake's initial vision into a reality that will redefine the industry.

Tim Grey

Investor

Hi, My name is Annette, and I'm investing in your company. I know you'll make it. Please let me know how I can be more involved with your company. Thank you and good luck.

Bfla Angel Duran

Entrepreneur and Grass Roots investor

www.linkedin.com/in/craigvomlehn Feel free to connect!

Craig Vom Lehn

Private Equity portfolio company management, MBA, Strategy and Financial Analysis. Family man and dividend investor in Gilbert, AZ

Investor Q&A

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What does your company do?

As avid gamers ourselves, we grew frustrated by the stagnancy of some of our favorite strategy games. So we assembled a team of 18 to build new and innovative modes never before seen in a mobile strategy game – and investors have already committed $435K to make our dream a reality. We’re the first company to layer monetization strategies (customization, upgrades, and a player-to-player marketplace powered by cryptocurrency) to maximize our revenues.

Where will your company be in 5 years?

Most games use only one monetization strategy – we’re using three – and they still reach multi-million dollar monthly revenues. With our expertise and community-driven, gamer-first approach, we’ve already developed a strong interest amongst gamers who are sick of the status quo. We’re confident we can be the biggest independent mobile game company in the rapidly-growing $68B mobile gaming market.

What is Dun Rite Games and how did it get started?

[Jake:] My background is from a gaming YouTube channel. I grew an audience there. I was frustrated with the mobile gaming market in general, and so were the 100,000-plus people who were following me at the time. As for the specific game we were playing, we just wanted more out of it. We felt like it was such an opportunity to have a really fun game, and so much of it was left out there that was undone. Our needs and wants were not listened to or fulfilled. So, it got to the point where I stopped making gaming content because the mobile market was not providing anything I really wanted to put out there. It occurred to me, why not try this? Why not try to make something from a gamer's aspect? All these games come out from these corporate aspects where it's all about how to make a quick buck, and they just churn out a lot of crap, in my opinion, and market it really well. We said, hey, we know what we want, so let's find the people who can help us make this. I started putting out videos explaining what I wanted to do in July of last year. That’s how I found Bato. He had the engineering background to make it happen. We emailed and talked over Skype, then I eventually flew out with my family to Mexico to meet Bato and his family. We hit it off and planned the whole thing. Bato interviewed about 30 people to fill the core programmer positions that to create a demo of the game. Then, by September, I had two programmers who were willing to move out to Cancun in October. Once we had set up the company in the U.S., people started working on it. So, we hired two people on our coin and worked until February of this year, then started asking for money. We found investors and were able to assemble a full team of about 18 employees, developers, artists, etc., and we are making our first title. We plan on making several games, but this is our first one. And it's going to be a base-building, strategy-style game. We feel like we have a really good opportunity to come into the mobile market and do something that no one has done yet, in terms of how they approach the game from the ground up, what they give the player, the experience, and listening to the community and really trying to develop the game that they want, not what we want or what is the quickest, easiest way to make a dollar.

What was missing in the games you were playing previously? What's new and different about what you're building?

[Jake:] There are a lot of things. One is innovation. There were games that we played and that we enjoyed. But for years, nothing changed. No one moved the ball forward. No one added the game modes that we wanted to be added to the game, the way we wanted to play the game. They just didn't cater to it at all, and it was just more of the same old, same old. On top of that, the competitive side of the game, which is the side that I lean towards, was just completely ignored. No e-sports direction, no competitive direction at all, in terms of tournaments or live events or anything like that. You look at the largest games in the world, and they're all competitive. People like to compete, whether it's casually with their friends or at a very competitive e-sports level. That whole side of this genre, in our opinion, is completely ignored. Almost like it doesn't exist. My channel was essentially the competitive side of that game. We're talking over 100,000 people, and I was a no-name YouTuber. I did it from scratch with no search engine optimization. I didn't know any of that stuff and still don't really know it. I know there's an audience for it, and that's one thing that we're definitely going to focus on, that competitive side. The third thing we’re going to focus on is customization. You look at all the base-driven games, whether it be The Elephant in the Room, Clash of Clans, Dawn of Titans, or Rival Kingdoms, for instance, and everything looks exactly the same. There's no skin, customization, or variety in what you can choose as far as who you are in the game or what your base is in the game or your troops or your heroes. We want to add all that because we know that customization is obviously a great monetization strategy. A lot of games have shown that to be wildly successful as their only monetization strategy. But there's a lot of un-serviced customization in these types of games. The fourth area of improvement would be community interaction. So many of these gaming companies stand up on their ivory towers and just sort of dole out what you get, without soliciting any real feedback or listening to what their customers want or think about. So, I have a real sense of listening to gamers and using content creators to funnel in that information and try to give the people who are actually playing the game what they want versus what we want to give them.

When are you looking at launching the game?

[Jake:] We’re looking at spring of next year, but it depends on how much money we can raise. There are many decisions that need to be made. We’d like to hire a larger team so that we can create a lot more content.

What does the revenue of a game like this look like?

[Bato:] Obviously, we compare ourselves to the top of the best in the games right now. A game like Fortnite, which is the most successful game right now, can be downloaded for free. You can play it for free if you choose. You can become the best in the world and not pay a cent. And they sell customization. You can buy skins, pickaxes, and flyers, for instance. They basically allow you to be anything you want: a clown, a fish, whatever. They're all dressed up. It's costumes. And they make roughly$300 million a month, so that's a lot of money for a free game.

And that's purely from the customization?

[Bato:] Customization is by far the dominant revenue stream. They do have what they call Battle Pass, which is a subscription. That allows you to level up your skin, so you can access some content that is not available for free-to-play players. Even that doesn't give you any upper hand or any powerful benefit in the game. You still start from zero, same as everyone else.

What are you looking at in terms of average revenue per user and projections as you roll it out next year?

[Bato:]We took a long, hard look at the statistics for games out there when coming up with those numbers. It's hard to gauge because no game company wants to publish their numbers specifically. But, from the data that we do have, for example, Game of War from Machine Zone, made $550 per user in 2016. Supercell, which is by all definitions one of the largest mobile game companies in the world by revenue, made $23 per user on average. Obviously, in a free-to-play environment, 90% of your purchases come from a smaller percentage of your users. And the majority of the money comes from 1% of your users, who we call whales. It's very skewed towards one end. Most of your players never spend any money. It balances out on average. There is another company called Space Ape owned by Supercell. In the same year, they made around $4 per user. [Jake:]The games like Clash of Clans and Supercell monetize solely on upgrades in the games. So, whether you upgrade a defense or a troop, just speeding up that upgrade is the only monetization strategy they had. So, not only are we going to have that proven monetization strategy, because people want to speed things up, but we are also putting customization on top of that, which games like them and Space Ape and Dawn of Titans have never done. Other companies have monetized solely on customization and made fortunes – hundreds of millions, if not billions, of dollars. But nobody in this genre has done customization on top of another strategy, especially, one they're already making money on. We're layering strategies – customization and upgrades. Not to mention, we have a few other ones that we haven't talked about yet that no one in the industry has done. [Bato:]Our estimates are fairly conservative because we want to be as realistic as possible going into it. We are estimating that we will reach $10 per user per year. Based on our estimates and our reach in the community, we can get to $100 million within the first years, or at least that's our hope.

So, that's basically 10 million users?

[Bato:]That's 10 million paying users. For that, we would require 125 million downloads for the game. Statistically, of all the apps that are downloaded, only 80% are opened, and after day one, the retention drops to 30%. After day seven, the retention drops to around 8% for strategy games like ours. More or less, out of 125 million downloads, we would get 10 million users a month or 10 million active users a month, and that would give us roughly $10 per user, so we’d reach around $100 million a year.

How confident are you in that number and how are you going to get to it? What's the marketing strategy?

[Jake:]Right off the bat, we have access to over 10 million YouTube subscribers, and they are helping us spread the word. We know for a fact that getting one million downloads early on in the game will be fairly easy. For most companies, you live and die by the number of downloads on the App Store, and that raises your number on the featured list for each of the App Stores. We're pretty confident that we can make it. [Bato:]Obviously, there's going to be a lot of work to be done. We're not afraid of it, and we're not naive. We know we need to do work, but the good part of what we are building is community outreach. We want to actually listen to the YouTubers, the people who are doing our marketing work. Most of them don't get paid by the companies they play games from. They are getting paid by either Twitch subscribers or people who donate to them on other sites. We know that they are the ones bleeding for us out there, so we wanted to bring them in from the beginning, and we are staying true to our word. We are having a YouTube gathering that will bring some of those names out there to visit us so that we can discuss with them what we're building, clearly state our vision, and if they choose to, they can support us. We're not paying them to support us. We're not paying them to be just a face for a company. We want them to like our game, and if they do like our game, then by all means, make a YouTube video out of that.

What about paid advertising? Will you also be looking at running Facebook ads or YouTube ads?

[Bato:]Social media spending is obviously one part of it. We know that the statistics are better on organic growth. For example, if Ninja, who is the largest streamer for Fortnite, goes out and says, "I like this game a lot, and it's not Fortnite," a lot of people would download that game because Ninja is playing it. Not because Ninja got paid to do it, but because Ninja likes it. We've seen YouTubers who advertise a game, and they're using their face and their name and it comes out that you're advertising the game on your YouTube channel, but it's basically the only video that you have of that game because you don't play it. So that shines through that you actually don't like the game, and you just got paid to do the advertising. If you actually are making videos of the game live and you're putting out content every day or every week, then people will notice that you're actually playing the game, and you actually like it. Not every game has a YouTube following, but it's because those games are not good enough for it. That's our strategy, to create a game that's actually community-driven and is easily distributable with YouTube videos and live streaming via Twitch, so people can enjoy watching it and can support the streamers and the YouTubers.

Aside from Supercell, who would you see as your competition?

[Jake:] For the first game, Clash of Clans, Rival Kingdoms, and Dawn of Titans would be some of the competition. Also, Electronic Sports is a large video game company that is making a game that is in this genre. There's going to be more and more competition, but we feel confident with the package that we have. The reason we're confident is that this literally came about because tens of thousands of people communicated with me for years, whether it be on YouTube comments and videos or livestreams on Twitch, telling me what they wished was in the game and what they wished would be changed. We already know that we’re doing the things that people are asking for. It's not a few guys sitting in a room saying, "Hey, wouldn't this be cool?" The feedback's already there. And from the start, we set up a focus group and brought players in and said, "Here's our idea. Give us feedback." Even before we'd ever written a line of code, more or less. It was like, here's what we want to build ... And we even changed things because of the ideas that they had and the feedback they gave us.

Why isn't Supercell building customization?

[Jake:] There's no way I can answer that question accurately. I can tell you what I think, but I cannot live inside their brain because I tried for years to. I was actually in what they call their NDA group, which means you sign an NDA, and you're communicating with the company directly in a Slack Chat. I was giving them these ideas for nothing, for free. And I tried and I tried.There are a few things that I think play into it, and I'm going to be honest with you because I'm honest with everybody. I think it’s cultural. Innovation at Supercell just stopped. It's like they rest on their laurels and just say, "Okay, this is good enough." I also think there's a little bit of arrogance involved, that they did make a great game and they were the kings. It's like "We don't need your input. We don't want to listen to you." I enjoyed the games they made very much. But why another company hasn't come along and done what we're doing, I cannot answer because it makes no sense. So many other genres have done it. You look at PUBG. Fortnite came along and just one-upped them. Before that, PUBG one-upped H1Z1. But for some reason, nobody has done it in this particular niche. And I don't know why.

What do you need to do to ensure your first million players share the game and make it go viral? What's going to make or break this game?

[Jake:] I think there are probably several things. One is that the game has just got to be fun. I know it's the simple answer, but so many games miss that. You pick it up and it's almost like you've picked up a job. It's like, this is work. This is not enjoyable. So, making the game enjoyable is important. Another thing, which we talk about in the office all the time, is the difference between complexity and depth. You want depth, but you don't want complexity. A game needs to be simple. You should be able to pick it up and intuitively know how to play it. There shouldn't be a million buttons, where it’s difficult to figure out where everything is. You shouldn’t feel like you’re thrown into the deep end and it's like, "There is just too much going on." Nobody wants to study for a few hours to learn how to play a game. That’s a terrible feeling, especially in a mobile game, because it lends itself to simplicity. That's an area where I can give credit to Supercell. When you pick it up, a 10-year-old can play it, not that they're going to be very good at it. But they can intuitively play it and understand it. So, I think simplicity with depth built into it is crucial for people to say, "Man, I like this game." The last thing I would say is community because people want to play with their friends and communicate with them. That's why we're building things like voice right into the game. There will be a very robust chat where you can message people, you can find friends, and you can challenge them. For so long in the game that we played a lot of, Clash of Clans, you couldn't even challenge your friend's clan to a war. It was not an option. So, these are all these things that we know that people want. They want to play with their friends, to compete and just hang out with their friends. We're going to have that all in there from day one. So, it's easy, it's intuitive, it's simple to find like-minded people, with things like suggesting clans that are active at the time that you're active. Things like that will be built into the searches, so you find people where it just fits. You're on at the same time, so even if you don't have friends that you know in real life, it's easy to find a group that plays at the same level and the same times that you do. So: fun, simplicity, depth over complexity, and community are all things that make you like a game. And you stick with it. You open it up again and again. Next thing you know, you're hooked.

What lessons have you learned while making your first game? Have you faced challenges and overcome them?

[Bato:] This is the first game we've built, but it's definitely not the first product I have built. I have a long history of entrepreneurship. Way back when I was six years old, my family introduced me to a hard work ethic. I was my own boss from very early on in my life. I worked with very large corporations. I'm an engineer. I have a master's in automation. I've worked with companies like Volkswagen, Airbus, Toyota, BMW, Audi. My job was to design manufacturing systems for those large corporations. I certainly have my share of hard-fought lessons. All of that, I'm applying now. I've learned over the years, through hardships, how not to run a company. I've always been driven to create an environment that I'm proud to say I work in, especially if I run it. I need to be proud to say that it's my company. We want to create an environment of trust and honesty. We want to reward hard work and let people make decisions and take ownership of their work. There is nothing more debilitating than when someone says to you, "You come at 9 o'clock, and you do what I say; otherwise, you're fired." We hired smart people to tell us exactly how to build a great game. We hired veterans in the game industry who have developed probably around 20 games, between all of them, so that they can together make a great game with the ideas that we have. So, even though we don't have the experience building a game, we did hire experienced people. Our art team has worked on many games, for example, Star Wars Old Republic, a massive EA game. They worked for large studios around the world. We moved a girl from Hong Kong who was working in a major studio over there. We moved one guy from Canada who was working in movies like the latest Harry Potter. He was a designer in that movie. He also worked in the Ghost in the Shell movie with Scarlett Johansson. He was an environment artist. We have people who have a long history in the industry, and they have a lot of experience in their craft. All of them say that without a doubt, this is the best place they’ve ever worked because we want them to make decisions, bring ideas, and challenge us as well. That’s the culture we’re creating here. They're not afraid to be honest. They say, "Okay, this is a bad idea. I think I have a better one." And we listen. That's why we're paying them. That's why we have them, and that's how we want to run the company. There are obviously growing pains. We went from two people to 18 people in two months. So, getting everyone on the same page, onboard with the same culture, with the same ideas, takes some time. Everyone has baggage from previous experiences, so they need to clear that out and reset.

How do you keep people engaged and moving forward to make sure you’re on track?

[Bato:] That's where my experience as a manager in complex engineering projects comes in. I've worked with large corporations in projects small and big, so I’ve implemented that experience. I create a combination of an agile methodology for software development and real-life situations. The basic idea of it is to fail fast. You need to test out an idea and fail fast so that you can learn from your mistakes and move forward. Obviously, you cannot just keep on failing and failing and failing and failing. You need to learn from failure. There needs to be a combination of smart decision-making and allowing people to fail, because failing means that they are making decisions. If they never make a decision, you end up with nothing in the end, and then it's just a waste of time for everyone. What we do is biweekly meetings where we plan and create a solid plan for a deliverable product at the end of those two weeks. If you don't know how to do that, it means you don't understand the problem thoroughly. You need to go back to the drawing board, break it down, and create again a smaller deliverable, but you can understand everything that you need to do to get that. Out of those two weeks, we learn a ton. For example, if we create a new troop, we have a new mechanic; we have a new mode. We try it out. We create a small team in the office. There's an artist, there's a 3D modeler, there's a programmer, there's a backend guy. They all sit at the same table for those two weeks. Plan it, test it, get it out in the hands of users, and then decide that this actually does work, so now we can create a bigger stable platform in which to build that. That's how we run the system.

If I’m an investor, why should I invest in Dun Rite Games?

[Jake:]I can tell you that we are making something that nobody else is making. We are doing things at every level in this mobile platform that nobody is doing and nobody has done, from the creative part of it, the game modes, all the way through to the monetization strategies. The mobile segment is set to take over half the $137 billion gaming market this year for the first time. It’s had ten years of double-digit growth since the iPhone was first introduced in 2007, and is projected to keep growing. I think we’re an innovative company that is poised to be at the right place at the right time for a platform that is just exploding in popularity.

1	Team has published 10 games between them.
2	Vetted through a Strategy Pro-gamer focus group assembled by the founders under NDA.
3	Founder has 109K subscribers on YouTube.
4	Mobile gaming market (MGM) is estimated at $68B with 10+ percent growth for 10 years.
5	Market expected to grow to $106B in 2021.
6	Free-to-play game Fortnite made $300M in April 2018 through customization alone.
7	We can reach over 15 million gaming enthusiasts on YouTube with our close-knit content creator community.

1	Limited Operating History The Company is in the development and deployment stage, with limited operating history. It has limited revenues to date. There is no assurance that the Company will be able to record profits in the future. The Company is also faced with risks inherent in operating a new business. The risks inherent in operating a new business such as the Company's include: (i) difficulties and delays often encountered in developing, producing and commercializing new, complex technologies; (ii) developing the markets for the Company's products and technologies; (iii) transitioning the Company's development efforts to commercialization; and (iv) attracting and retaining qualified management, sales and/or marketing and technical staff.
2	Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
3	Losses As the Company continues to generate revenue, it will continue to experience significant operating losses as it expands its network, engages in additional development efforts, and grows its marketing and sales force in an effort to commercialize its products. The Company expects losses until such time, if ever, that its revenues from the sale of its products and services cover its expenses. Achieving and maintaining long-term profitability depends on successfully commercializing its products and technologies. The Company cannot assure you that it will be able to achieve any of the foregoing or that it will be profitable even if it successfully commercializes its products.
4	Need for Additional Financing The Company is seeking up to $1,500,000 to fund product development, marketing and operations. Capital requirements associated with product development, marketing and operations have been and will continue to be substantial. The Company may need to raise additional funds in the future in order to fund operations, pursue sales growth opportunities, develop new products or services, respond to competitive pressures, or acquire other businesses. The Company may not be able to obtain additional financing when needed, or that, if available, such financing may not be available on acceptable terms. If additional financing is needed the interests of the holders of Unsecured Convertible Promissory Notes (the “*Notes*”) could be substantially diluted. If adequate funds are either not available or not available on acceptable terms, the Company will be unable to accomplish its objectives. Any inability to do so would have a negative effect on its business, revenues, financial condition and results of operations. If additional funds are raised through the issuance of equity or convertible debt securities, the potential equity ownership of the holders of the Notes will be diluted. Moreover, these securities may have powers, preferences and rights that are senior to those of the rights of the holders of the Notes.
5	Capital Expenditures The Company will incur significant capital expenditures if it decides to build or operate a physical location that would require the purchase or rental of office space and computers as well as payments for internet access as opposed to using cloud-based database and web server solutions.
6	Market Experience The Company has limited experience in the markets for any products that it may develop. While initial response has been positive, there is no assurance that there will be a long-term market adoption of any product that the Company may develop. The Company has made assumptions regarding the market size for its market and products, and some of these assumptions are based in part on information received from third parties. If these assumptions prove to be incorrect, the Company may not be able to achieve profitability and its business would be materially adversely affected.
7	Failure to Successfully Manage Releases or New Solution Integration The Company intends on deploying new releases of our software on a regular basis. Due to the condensed development cycles under which we will likely need to operate, we may experience errors in our software, corruption or loss of our data or unexpected performance issues from time to time. For example, our solutions may face interoperability difficulties with software operating systems or programs being used by our customers. Similarly, new releases, upgrades, fixes may have unanticipated consequences on the operation and performance of our product. If we encounter integration challenges or discover errors in our solutions late in our development cycle, it may cause us to delay our launch dates. Any major integration issues or launch delays could have a material adverse effect on our revenues, operating income and reputation.
8	Development and Third Party Access The Company's ability to generate revenue will be affected by the amount of time it takes to engineer, design, build and operate its software and applications. Although management has a development schedule, there are multiple third-party vendors and service providers that must continue to provide the Company access to its application programming interfaces and operating systems. Should third-party vendors and service providers not perform as expected or deliver their work as planned, the Company may not be able to release its products and product updates in a timely manner.
9	Product Risk Although the Company believes that its initial product is ready for large scale deployment, the internet and web services industry is fast-moving with large incumbents and new entrants attempting to provide internet solutions. The Company is focused on the gaming space. Market acceptance of this approach is not proven and even if the approach is accepted, the Company will be adversely affected if it is unable to quickly adapt to new market trends.
10	Ability to Build and Maintain Applications within Certain Mobile Operating Systems The primary benefits of the Company’s initial product are dependent upon its ability to be accessed within a native mobile application on both Apple’s iOS platform and Google’s Android platform. There are no guarantees that Apple, Google or any other emerging mobile operating system will accept the any of the Company’s current or future mobile application integrations. If any of the dominant mobile operating systems reject one of the Company’s mobile application integrations, such an event may have a material adverse effect on the Company’s business and financial condition.
11	Competition The gaming space is crowded and the Company expects competition to intensify. The Company’s current and potential competitors range from large and established companies to emerging start-ups. Competition in the industry depends upon a number of factors, including price, product offerings, and new business models. Certain competitors have greater market presence, engineering depth and marketing capabilities, and financial, technological and personnel resources than those available to the Company. As a result, they may be able to develop and expand their client base more quickly, adapt more swiftly to new or emerging technologies and changes in user requirements, take advantage of acquisition and other opportunities more readily, provide better pricing and devote greater resources to the marketing and sale of their products and services than the Company.
12	Technical Problems Related to the Development of our Product The software, internal applications and systems underlying our services are inherently complex and may contain material defects or errors, particularly when first introduced or when new versions or enhancements are released. Our development and testing may not be sufficient to ensure that we will not encounter technical problems when we attempt to develop our software, internal applications and systems. Any errors or defects that cause performance problems or service interruptions could harm our reputation and brand, result in significant costs to us, subject us to unanticipated litigation costs, and impair our ability to sell our solutions.
13	Scalability The Company expects to attract users of its mobile solutions at a very high pace. The Company's future growth and success will depend in part on its ability to grow its databases, servers, operations and marketing programs, and to retain a technological or consumer preference advantage over competitors’ products and services in various markets and geographies. Inability to scale our services in a timely manner could negatively impact our operations.
14	Intellectual Property Risk Part of the Company’s success will depend on its ability to protect its proprietary rights in the technologies used in its products. If the Company is unable to protect its proprietary rights adequately, its competitors could use the intellectual property the Company has developed to enhance their own products and services, which could harm our business. The Company intends on relying on a combination of copyright, service mark, trademark, trade secret laws and potentially patents, as well as confidentiality procedures, to establish and protect our proprietary rights, all of which provide only limited protection. The steps our Company takes, however, may not prevent unauthorized use or the reverse engineering of the Company’s technology. Unauthorized parties may attempt to copy or otherwise obtain and use the technologies underlying our products and business processes. Monitoring unauthorized use of the Company’s technologies is difficult, and if the Company is unable to protect its proprietary rights, the Company may find itself at a competitive disadvantage to others who have not incurred the substantial expense, time and effort required to create similar innovative products. Additionally, if the Company markets its services internationally in the future, effective trademark, service mark, copyright and trade secret protection may not be available or as robust in every country in which our services are made available. As a result, the Company may not be able to effectively prevent competitors outside the United States from infringing or otherwise misappropriating our intellectual property rights, which could reduce the Company’s competitive advantage and ability to compete or otherwise harm the Company’s business.
15	Third-Party Proprietary Technology There has been substantial litigation in internet-related industries regarding intellectual property rights and, from time to time, third parties may claim infringement by the Company of their intellectual property rights. If the Company were found to be infringing on the intellectual property rights of any third party, it could be subject to liabilities for such infringement, which could be material. In addition, any such claims could distract management from conducting the Company’s business.
16	Third Party's Trademark and Copyrights There has been substantial litigation in internet-related industries regarding trademark and copyrights and, from time to time, third parties may claim infringement by the Company of their trademarks and copyrights. If the Company were found to be infringing on the intellectual property rights of any third party, it could be subject to liabilities for such infringement, which could have a material adverse impact on our profitability. In addition, any such claims could distract management from conducting the Company’s business.
17	Reliance on Company Materials All business plans, presentations and business summaries (oral and written) contain forward-looking statements, management opinions and very speculative projections. Actual results may vary significantly. The financial projections provided to potential investors are based on generalized assumptions relating to, among other things, acceptance of the Company's products and the timing of the introduction of products. Prospective investors are urged to consider carefully the assumptions that are underlying the projections. The assumptions underlying the projections may not be reasonable and the actual results achieved during the projected periods will inevitably vary from the projections. The variations may be material and adverse. No representation or warranty is made concerning whether the projected results will be realized.
18	Dependence on Management and Key Personnel The Company is dependent on the talent and resources of its key managers and employees, specifically Ricardo Velez and Jake Dobbins. Additionally, the Company depends in large part on its ability to hire, train and retain qualified employees. Any inability to hire, train and retain a sufficient number of qualified employees could hinder the growth of its business. Skilled personnel familiar with the highly-technical nature of the Company’s products are in short supply, competition for their services is intense, and the industry turnover rate for them is high. Consequently, the Company may have difficulty hiring the desired numbers of qualified employees or independent contractors to meet its information technology requirements, which could decrease the efficiency or quality of our operations and negative impact our revenues.
19	Growth Management To manage its proposed growth effectively, the Company will have to develop and implement operational, financial and other internal control systems, as well as business development capabilities. Its growth is expected to continue to place a significant demand on sales, marketing, customer care, managerial, operational, financial and other resources. The Company's current information systems, procedures and controls may not be able to continue to support its operations and may hinder its ability to serve as an effective provider of products and services. If it cannot manage growth effectively, the quality of services may not meet users’ expectations, which would have a negative effect on its business, revenues, financial condition and results of operations.
20	Inability to Attract Customers The Company’s revenue growth is dependent on our ability to continually attract new customers while retaining and expanding our service offerings to existing customers. Growth in the demand for our solutions may be inhibited and we may be unable to sustain growth in our customer base for a number of reasons, including, but not limited to: our inability to market our solutions in a cost-effective manner to new customers or in new vertical or geographic markets; our inability to expand our sales to existing customers; our failure to develop new or additional solutions: our inability to build and promote our brand; and perceived security, integrity, reliability, quality or compatibility problems with our solutions.
21	Privacy Concerns The solutions we provide will involve the collection, storage and transmission of confidential personal and proprietary information regarding our clients and our clients’ current and prospective customers. Specifically, we collect, store and transmit a variety of data including, but not limited to, end customer loyalty and billing information. Additionally, we collect and transmit sensitive financial data such as payment information. The Company will strive to comply with all applicable data protection laws and regulations, as well as its own posted privacy policies. However, there can be no certainty that the measures we take to protect the privacy and integrity of our customers’ data will be adequate to prevent or remedy unauthorized access to our system. Because techniques used to obtain unauthorized access to—or to sabotage—systems change frequently and generally are not recognized until launched against a target, we may be unable to anticipate these techniques or to implement adequate preventive measures. Experienced computer programmers seeking to intrude or cause harm, or hackers, may attempt to penetrate our service infrastructure from time to time. If our data security or data integrity measures are breached as a result of third-party actions or fail due to any employees’ or contractors’ errors or malfeasance or otherwise, and someone obtains unauthorized access to our customers’ data or this data is otherwise compromised, we could incur significant liabilities, including proceedings or actions against the Company and/or fines and sanctions by processing networks or governmental bodies. In addition, any failure or perceived failure to protect our customers’ data could lead our solutions to be perceived as not being secure cause us to lose users and customers, which could potentially have an adverse effect on the Company’s business and reputation. In addition to purposeful breaches, the inadvertent transmission of computer viruses could expose us to security risks. If an actual or perceived breach of our security occurs or if our customers and potential customers perceive vulnerabilities, the market perception of the effectiveness of our security measures could be harmed and we could lose sales and customers. As a result, the Company might be required to expend significant capital and resources to protect against, or to remedy, problems caused by hackers, and we may not have a timely remedy against a hacker who is able to penetrate our service infrastructure. We will also rely upon our clients as users of our system to promote security of the system and the data within it, such as the administration of client login data and control of client-side display of data. Failure by our clients to perform these activities in such a manner as to prevent unauthorized access to data may also result in claims against us, which could expose us to potential litigation and harm to our reputation.
22	Changes To Government Regulations Regarding Privacy and Data Collection Regulatory authorities around the world are considering a number of legislative proposals concerning privacy and data protection. Federal and state governments and agencies have adopted, or are considering adopting, laws and regulations regarding the collection, use and disclosure of data. It is possible that these laws may be interpreted and applied in a manner that is inconsistent with the Company’s data practices. If so, in addition to the possibility of fines, any increase in the costs of compliance with, and other burdens imposed by, applicable legislative and regulatory initiatives may limit the Company’s ability to collect, aggregate or use data. Moreover, complying with these various laws could cause the Company to incur substantial costs or require it to change its business practices in a manner adverse to its business.
23	Access to the Internet; Data and Internet Security The Company’s business will depend upon the satisfactory performance, reliability and availability of the Company’s website, web services, databases, and the internet. While unlikely, any loss of internet access could result in a loss of existing users and impair the Company’s ability to attract new users and other revenue sources, thereby harming the Company’s revenues and growth. The Company’s business will depend upon the satisfactory performance, reliability and availability of the Company’s mobile application integrations, web services, databases, and the internet. While unlikely, any loss of internet access could result in a loss of existing users and impair the Company’s ability to attract new users and other revenue sources, thereby harming the Company’s revenues and growth. Experienced computer programmers seeking to intrude or cause harm, or hackers, may attempt to penetrate the Company’s infrastructure from time to time. If the Company’s data security or data integrity measures are breached as a result of third-party actions or fail due to any employees’ or contractors’ errors or malfeasance or other cause, and someone obtains unauthorized access to the Company’s users’ data or this data is otherwise compromised, the Company could incur significant liabilities, including proceedings or actions against the Company and/or fines and sanctions by governmental bodies. In addition to purposeful breaches, the inadvertent transmission of computer viruses could expose the Company to security risks. If an actual or perceived breach of the Company’s security occurs or if the Company’s clients and potential clients perceive vulnerabilities, the market perception of the effectiveness of the Company’s security measures could be harmed and the Company could lose users. As a result, the Company might be required to expend significant capital and resources to protect against, or to remedy, problems caused by hackers, and the Company may not have a timely remedy against a hacker who is able to penetrate the Company’s service infrastructure. Any perceived inability to adequately address privacy concerns, even if unfounded, or comply with applicable privacy laws, regulations and policies, could result in liability to the Company or damage to its reputation and could inhibit acceptance of the Company’s products and harm the Company’s business.
24	Restrictions on Transferability Neither the Notes offered nor any equity issuable upon their conversion have been registered under the Securities Act of 1933 (the “*Securities Act*”) or any applicable state securities laws. Accordingly, those securities may only be offered or sold pursuant to an exemption from the registration requirements of the Securities Act or pursuant to an effective registration statement. The ability of the holders of the Notes to resell or otherwise transfer the Notes or the equity issuable upon its conversion is severely restricted.
25	Limited Control by Investors At the present time, the Company’s founders Ricardo Velez and Jake Dobbins, control 100% of the outstanding capital stock and after this offering will still control 100% of the outstanding equity. The Company currently intends to retain earnings to provide funds for the operation and expansion of its business and does not anticipate that it will pay dividends or make distributions in the foreseeable future. Any making of distributions may be subject to the discretion of the Company’s Board of Directors. Any future determination to pay dividends or make distributions may depend upon the results of operations, financial condition, capital requirements, contractual restrictions, and other factors deemed relevant at the time by the Company’s Board of Directors.
26	Accounting and Tax Matters The Company intends to retain a reputable certified public accounting firm to help provide advisory and compliance services, but does not expect to have an audit of its financial statements for the year ended December 31, 2018.
27	Use of Proceeds The Company has broad discretion as to the use of proceeds from this offering. None of the proceeds from this sale have been designated for specific purposes. Accordingly, investors in the Company will have to rely on the Company’s management to apply a significant portion of these proceeds in an effective manner. The Company’s failure to apply these proceeds effectively could impair the value of an investment in the Company.
28	Creation of Preferred Stock The Company has not yet authorized the preferred stock class into which the notes will convert, while they have agreed to do so, it may be a risk for investors in this round.

Director	Occupation	Joined
Jacob Dobbins	Strategy @ Entrepreneur	2017
Ricardo Velez Osuna	General Manager @ Entrepreneur	2017

Officer	Title	Joined
Jacob Dobbins	Founder & Co-CEO	2017
Ricardo Velez Osuna	Founder & C0-CEO	2017

Holder	Securities Held	Voting Power
Jacob Dobbins	750 Common Stock	50.0%
Ricardo Velez Osuna	750 Common Stock	50.0%

Date	Amount	Security
12/2019	$258,000	Convertible Note
01/2019	$327,998	Convertible Note
04/2018	$435,000	Convertible Note

Issued	Amount	Interest	Discount	Valuation Cap	Maturity
04/18/2018	$435,000	8.0%	20.0%	$10,000,000	04/30/2020
12/02/2019	$258,000

$100,000	95% towards salaries and operational expenses towards building the game. 5% Wefunder Intermediary fee.
$600,000	95% towards salaries and operational expenses towards building the game. 5% Wefunder Intermediary fee.

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