Spotlight interview with...
Kam Punia
Founder of Pixion Games
Spotlight interview with...
Kam Punia
Founder of Pixion Games
How have market conditions affected fundraising for startups, and what advice do you have for entrepreneurs seeking investment in the current climate?
Market conditions have a huge impact on available capital. The Covid pandemic is a salient example – pre-2020, it was far easier to secure investment. In the current market, entrepreneurs are fighting it out for a smaller pool of available funds. Valuations are slashed and it becomes an investors market, meaning they can be very selective about who they work with, often looking for outliers who will deliver the best ROI. It’s important for entrepreneurs to be able to demonstrate traction, validation and KPIs even before seed round. My advice is to bootstrap for as long as possible, lean on family and friends where you can, look for angel investors and make every pound stretch
What advice do you have for founders when considering different funding options for their startup?
Founders should be very clear on what type of business they want to build. For example, do you want to be a founder that retains maximum control, doesn’t answer to a board, pays regular dividends, and enjoy steady momentum? Or do you want to work with VCs and work towards a shared objective to scale rapidly over the next four to seven years to deliver rapid returns, often up to 20x? Either approach can be successful, but they build very different businesses with very different pressures and operational considerations, so it’s crucial that founders understand what they want and fundraise accordingly
"Founders should be very clear on what type of business they want to build. For example, do you want to be a founder that retains maximum control, doesn’t answer to a board, pays regular dividends, and enjoy steady momentum? Or do you want to work with VCs and work towards a shared objective to scale rapidly over the next couple of years?"
Kam Punia, Founder of Pixion Games
What advice would you give to entrepreneurs approaching VCs for the first time, especially if they don't have an extensive track record or existing connections in the industry?
When approaching VCs, who are interested in rapidly scaling companies, always start by putting yourself in the best position by showcasing that you have something of substance. For me, it was my decade of experience in senior positions, for others it could be their network or achievements. If you don’t have that, then build something. It doesn’t necessarily need to be revenue generating, but able to articulate a proof of concept, even if it’s a prototype, and battle test the business and core proposition.
If you can do that, then you’re a step ahead of anyone who’s armed with just a pitch deck, and you’ll likely be able to raise more money and minimise dilution.
What are the benefits of working with angel investors, and how can they add value beyond just providing capital?
Angels are the most value-add type of investors, in my experience. They’re generally operators who have been in your position and therefore have the relevant experience and expertise, but they also come in at a very early stage so are personally incentivised to help you raise your next round and de-risk their investment. This helps you plug any potential blind spots and move forward with operational expertise from credible individuals with proven backgrounds. All of this helps you to create a very strong narrative for your business.
What are the optimal times to raise funding for a startup, and how does the fundraising approach differ depending on the stage of your business?
There are two best times to raise. The first is when you don’t have a live product or KPIs and are therefore ‘selling the dream’. The second is when you have a product that is live and has seen exponential growth, at that point you’re selling KPIs. In the latter scenario, the investors can clearly see the potential of your business and the numbers speak for themselves. In the first scenario, it’s very different. Investors will want to know why now, why your team and how you’re going to deliver a solution that creates a rapidly scaling business.
"There are two best times to raise. The first is when you don’t have a live product or KPIs and are therefore ‘selling the dream’. The second is when you have a product that is live and has seen exponential growth, at that point you’re selling KPIs."
Kam Punia, Founder of Pixion Games
What strategies can founders use to effectively tailor their pitch to different investors, and what key elements should they focus on when presenting their startup?
Tailoring your approach to the individual is essential. Remember that investors have different fund sizes, LP commitments and risk appetites that are mandated by their investment thesis. Go armed with that information and be able to show your domain expertise, experience and ‘bankability’ to mentally minimise the risk potential of investing in you.
Being able to connect on a personal and cultural level will help. As part of this, keep in mind that one of the most valuable traits of any founder is resilience. I’ve found that investors like to understand how you can manage the inevitable peaks and troughs of running a business and how you’ve overcome challenges before. If you can weave that together with a crystal-clear ideation and vision of the future, including where you sit in the market, the competitive landscape and your USPs, then you’ll start building confidence even pre-product.
How should founders handle rejection during the fundraising process, and what advice do you have for maintaining confidence in your vision while being open to feedback?
It’s usual to get a lot of rejections, even the CEO of Canvas was turned away 70 times. It’s easy to start feeling a bit of ‘FOMO’ when you think you’re not getting anywhere, but just one ‘yes’ can start an avalanche of investment.
Many people may not see your business the way that you do, and you’ll be given a lot of advice whether it’s solicited or not. Be open to learning and adapting to feedback, but balance that with a conviction in your proposition and ability to filter out what is and isn’t suitable so you can grow based on useful and valuable lessons.
About Kam Punia
Kam Punia is a seasoned gaming industry professional with over a decade of experience launching games across console and mobile platforms. As the Founder of Pixion Games, he focuses on developing competitive multiplayer games that are accessible for mobile users.Previously, as Head of TCG for Konami Northern Europe, Kam was instrumental in building the division and successfully relaunching Yugioh across video games, trading card games, and hobby markets. Under his leadership, Yugioh became one of the most popular TCGs in several territories, achieving seven-figure P&Ls and establishing Konami Northern Europe’s esports tournament structure.Kam has also forged strong relationships within the games, creative, and event-led industries, leading to powerful international brand partnerships. His extensive experience has resulted in the successful management and launch of over 40 new product releases, positioning him as a respected leader in the mobile gaming space.
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