Exercise – Game App Frapp

Game App “Frapp”-startup

Frapp is a new and exciting game concept The founders of Frapp are building the game app and

hope to launch next July (6 months from now) They understand that this will require not only hard work,

but also some investments upfront In order to assess the amount of money required, they

made a business plan based on assumptions With this business plan, they aim to attract investors to

help fund the company The founders have already invested €150K and received

€50K from iMinds

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Key assumptions business plan (1/3)

Revenue 100K leads will be generated per month at a cost per

lead of €0,01 10% of leads will be converted into actual customers customers will pay €5 per month subscription to the

game per customer there is a €2 transaction cost upon sign-on per customer there is an estimated €1.5 monthly cost

(data etc.) 3% of customers leave (annual churn)

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Key assumptions business plan (2/3)

Operational expenses The team consists of the following people

3 game developers with annual cost of €60K (active) 1 manager with annual cost of €80K (active) 1 business developer with annual cost of €60K to be hired at

1/5/2014 1 customer service with annul cost of €60K to be hired at

1/7/2014

Travel costs of €1200 per month starting from 1/6/2014 Marketing costs of €2000 per month starting from

1/1/2014

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Key assumptions business plan (3/3)

Investments (capex) Hardware (server) (-€75K) on 1/3/2014 Setting up testing environment (-€40K) on 1/6/2014 Capitalized development (-€30K) on 1/1/2014 Capitalized development (-€30K) on 1/6/2014

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