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How PlayCap Invests

Welcome to PlayCap! This page outlines the key aspects of our angel network. Here, you will find information on our mission, investment processes, network contributions, and how we source and evaluate investment opportunities. Whether you're new to angel investing or have prior experience, this guide will help you navigate your journey with PlayCap and maximize the value of your participation in our network. Make sure you have signed up to PlayCap so you get access to our WhatsApp group to be able to be a part of this.

What is PlayCap

PlayCap is an angel network of women in the games industry interested in making pooled investments and supporting new companies. We focus on backing game studios and game tech companies with early investments and years of expertise. 

 

We invest into opportunities regardless of whether they are led by women or men. There are no sign-up fees or obligations to invest; you can participate at your own pace. If you ever wish to opt out, just DM Bibbi Wikman, and we’ll remove you from future communications. We also encourage you to refer any friends in the industry who might be interested in joining our network.

How You Can Contribute

Beyond investing, your expertise is incredibly valuable. Since we all come from the games industry, our collective knowledge strengthens PlayCap as a partner for the studios we support. Please feel free to share interesting insights in the “Interesting Stuff” WhatsApp channel. For broader topics, use the “General Stuff” channel. If you are interested about being a part of the investment committee, DM Bibbi Wikman on WhatsApp.

Lead Investor Role

Bibbi Wikman, founder of PlayCap will typically act as the lead investor unless the role is delegated to another person in the network for specific deals. The lead investor manages the communication with the studio, gathers investor participants, sets up the SPV, and oversees the full process and administration of the investment. 

What is a SPV

A Special Purpose Vehicle (SPV) is a legal entity created solely for the purpose of making a specific investment. In the context of angel investing, an SPV allows multiple investors to pool their resources into one entity, which then makes a single investment in a company.
 

Why it’s good for the company:
  • Simplified Cap Table: Instead of having numerous individual investors, the company deals with just one entity, keeping its cap table clean and easy to manage.

  • Faster Decision-Making: Since the SPV represents PlayCap, it reduces the complexity and time needed to finalize deals.


Why it’s good for the angel network:
  • Collective Investment: It allows PlayCaps investors to combine smaller amounts of capital, making larger investments possible.

  • Shared Risk: The risk is distributed among the investors in the SPV, making it a safer and more appealing option for individual angels.

  • Streamlined Process: Handling investments through one entity simplifies administration, making it easier for the network to manage.

Sourcing Investment Opportunities

  • From the Network: If you discover a promising pitch or have a project you want feedback on, please email it to hello@playcap.gg or DM Bibbi Wikman.
     

  • Inbound Leads: PlayCap also receives opportunities via email, LinkedIn, and events.
     

  • Other Investors: We maintain relationships with VCs and other angels to share deal flow and leverage their due diligence processes.

Valuations

We typically target companies with valuations between $500K and $6M, depending on factors such as:
 

  • Stage of development (concept vs. post-launch)

  • Revenue potential and audience size

  • Existing traction (e.g., community or player base)

  • Team experience and past successes
     

Targeting valuations that allow for a 10x to 30x return on exit.

Investment Process

  1. Initial Review: Our investment committee reviews potential deals and conducts preliminary due diligence on early-stage companies in gaming.
     

  2. Hot Cases: We present vetted opportunities in the "Hot Cases" WhatsApp channel, along with all relevant details.
     

  3. Separate Group for Interested Investors: If you’re interested, we’ll set up a separate group for the deal where you can ask questions, share insights, or request a session with the developers.
     

  4. Participation: To participate, DM Bibbi Wikman on WhatsApp or email hello@playcap.gg with your investment amount. The minimum investment is $2,500.


Each investment incurs an SPV setup fee, typically around $500 per investor, depending on the number of participants and the size of the investment. The amount will be communicated before the transfer.

Exit Scenarios

  1. Acquisition: If a larger company buys the startup, your shares are sold, and the proceeds are distributed via the SPV.
     

  2. IPO: Should the company go public, your shares become tradable. You may be subject to lock-up periods before selling.
     

  3. Secondary Sale: You may be able to sell shares to other investors before a liquidity event.


PlayCap charges the standard 20% carry fee on profits to the lead investor, meaning 80% of profits are distributed to investors based on their original investment.

 

Once the exit occurs and funds are distributed, the SPV dissolves.

Tax Considerations

Typically, no taxes are due until you receive proceeds from the investment, whether through an exit or dividends.
 

  • Capital Gains Tax: When an exit occurs, if the investment has appreciated in value, you'll owe capital gains tax on the profits. The tax rate depends on your local laws and whether the gains are considered short-term (held for less than a year) or long-term (held for more than a year).
     

  • Dividends Tax: If the company distributes dividends, those are typically taxed as ordinary income, depending on the jurisdiction.
     

Final Stage

When the investment reaches an exit or begins distributing dividends, I will guide investors through the tax process and provide necessary documentation for tax reporting in the separate studio group on WhatsApp.

More info

This article should answer any questions you have on Odins (our SPV distributor) "bare trust" legal structure.

 

This article outlines tax reporting and relief through Odin focused on UK + US investors.

 

If you are an investor that aren't domiciled in the UK or US we'd recommend that you speak with your accountant or tax advisor, but all investors receive proof of investment documentation for deals closed on the Odin platform that can be used to apply for tax relief.

None of PlayCaps investors are exposed to tax liability in the UK where Odin is run from (unless you are a UK resident), you only pay tax where you are domiciled.

Meetups & Webinars

We’ll be hosting webinars and digital meetups featuring industry experts which will be communicated through email and WhatsApp.

These sessions will help you gain deeper insights into the investment process and answer your questions. Recordings will be shared in WhatsApp for those who can’t attend.

We also plan to hold in-person meetups at key events like Gamescom and GDC. Please connect with people through the Events WhatsApp-channel if you would like to meet with other women attending certain events.

DISCLAIMER: This information is provided for general guidance and does not constitute financial or investment advice. There are no obligation to invest—each person decide which opportunities to participate in and how much to invest (minimum 2500 USD). All decisions are made at your own risk. Please consult with a financial advisor or legal professional if needed. If you notice any missing or misleading information, contact us at hello@playcap.gg.

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