The mobile game and app industry is a dynamic space, characterized by rapid growth and ever-increasing competition. While many powerful startups are making their mark on the global stage, one of the biggest obstacles they face on their growth journey is accessing financing at the right time.
Particularly in this sector, where user acquisition costs are high and competition is fierce, rapidly strengthening cash flow has become the key to growth and sustainable success.
In recent years, the mobile gaming sector has seen a significant decline in venture capital (VC) investments. Funding, which reached $19.3 billion in 2021, dropped to $4.2 billion by 2023.1 This situation compels studios to turn to alternative financing models to fund their growth.
By thoroughly analyzing these challenges, LEUS has developed flexible, performance-based financing models that are reshaping the growth dynamics of the mobile entrepreneurship ecosystem.
Next-Gen Growth vs. Traditional Investment: The LEUS Difference
LEUS offers a completely new approach to growth financing for mobile app and game studios. Unlike traditional models, the LEUS approach is built entirely on technology, speed, and flexibility.
So, what exactly does this “next-gen growth” mean?
- Fast and Data–Driven Processes: No lengthy paperwork, endless meetings, or collateral requirements. The evaluation process is incredibly simple: you integrate your app’s performance data, and based on the analysis, your financing process begins swiftly.
- Zero Equity Loss, Full Control: Unlike with VC investments, you retain full control of your company. Your freedom of action isn’t restricted by demands like equity transfer or a board seat. LEUS’s goal is not to try to sell your company, but to support you on your scaling journey.
- Technology–Focused Partnership: LEUS doesn’t just provide funding. Throughout the process, it helps studios track their performance much more effectively with ROAS & LTV forecasting tools, industry benchmarks, and exclusive insights. It’s by your side with technology from start to finish.
- Limited and Fair Profit Sharing: You don’t share your profits indefinitely, as you might with publisher agreements. LEUS works with a limited profit-sharing model to help your app gain its initial momentum. Once the set target is reached, all your earnings and equity remain yours.
- Customized Flexibility: Instead of a one-size-fits-all system, we offer a structure that can be tailored to every studio’s needs. You can use different financing models simultaneously and receive support multiple times on your growth journey.
Flexible Financing Solutions for Every Need
LEUS optimizes the cash flow and growth potential of studios with three main financing products designed for different needs and business models.
- KatAppult: Designed for studios that need growth capital and want to manage repayments on a more traditional schedule.
- ReLoad: A solution that instantly relieves cash flow for those who want to quickly access their near-term receivables, such as ad revenues, in-app purchases, or government incentives.
- Momentum: Offers an innovative repayment model based entirely on cohort performance, sharing the risk in user acquisition (UA) campaigns.
How ROAS-Focused Growth Works with Momentum: Momentum makes financing smarter and more sustainable by focusing on the return on your marketing spend. LEUS covers up to 80% of your monthly UA budget. Repayments are not fixed but determined entirely by the increase in your campaign’s ROAS performance. Let’s examine this flexible repayment process through the table below:
For example, let’s say LEUS provided $80,000 of your $100,000 UA spend for that month:
- End of Month 1: ROAS is 20%. The payment for this month will be 20% of the provided financing. ($80,000 x 0.2 = $16,000)
- End of Month 2: ROAS reaches 40%. Since there was a 20 percentage point increase from the previous month, this month’s payment is again 20% of the $80,000. ($80,000 x 0.2 = $16,000)
- End of Month 3: ROAS rises to 70%. As the increase from the previous month is 30 percentage points, this month’s payment is calculated as 30% of the $80,000. ($80,000 x 0.3 = $24,000)
Through this structure, LEUS shares the risk with the companies it finances. Low ROAS means a low profit-sharing rate.
Empower Yourself with Data: Get Ahead of the Competition with LEUS Lumina
In the mobile world, data is everything, and studios that use data well are always one step ahead. Based on this reality, LEUS offers its users an exclusive and completely free data analysis platform: Lumina. Lumina transforms complex data into actionable strategies, helping studios stay ahead of the curve.
- ROAS & LTV Forecasting: Optimize your budget by creating ROAS and LTV projections for up to 1 year based on your campaign’s early data.
- Industry Benchmarks: Clarify your market position by comparing your metrics like CPI, ROAS, and Retention against competitors.
- Financing Eligibility Score: Make your financing processes predictable with a custom score based on your performance data and get fast marketing support from LEUS.
- All Your Data in a Single Dashboard: Track all your critical data from different sources like MMP, App Store, and Google Analytics in a single, daily updated dashboard.
The LEUS Ecosystem: Value-Adding Strategic Partnerships
LEUS supports entrepreneurs holistically on their growth journey, not only with financing but also with advantages in technology, marketing, and strategy.
- Eachlabs: Eachlabs users can make one-time payments with cost-free financing from LEUS and get more tokens for the same price. Plus, easily manage your payments with flexible monthly installments.
- MWC: For those receiving consulting services from MWC for the first time, LEUS provides up to $150,000 in cost-free financing, and up to $500,000 with only a 1% profit share.
- Potensus: Get up to $150,000 in marketing financing from LEUS at zero cost, and financing up to $500,000 with just a 1% profit share. Maximize your ad revenues with the trusted monetization partner, Potensus.
- Adapty: Connect your app data with a single click and enjoy a discount on your Adapty subscription for the first two months.
- Peaks & Pixels: Increase your performance with our expert partner in growth and digital marketing consultancy.
- Adjust: Our module partnership allows you to complete your data integrations easily, securely, and quickly.
Thanks to these comprehensive collaborations, LEUS ensures that entrepreneurs have easy access not just to financing, but also to technology, marketing, and strategic support. By standing by them in every area of the ecosystem, LEUS aims to increase their global competitive power in the mobile game and app industry.
The Growth Journey with LEUS
Growing in the mobile game and app sector is possible by accessing the right financing at the right time. LEUS accelerates the growth journey of entrepreneurs with its innovative financing products and powerful data analytics tools, enabling them to build solid foundations for sustainable success.
Discover the solutions offered by LEUS to not miss out on growth opportunities, and simplify your financial processes, and secure your future with data-driven strategies!
To get detailed information about Momentum, KatAppult, ReLoad, and Lumina and to start exploring LEUS’s solutions, you can click here.
Source: PitchBook, Geography: Global, As of September 30, 2024.
