High barrier to entry 

Multiplayer is the future - over the past few years, we've seen multiplayer games like Fortnite become multi-billion dollar franchises seemingly overnight. This is because interacting with others virtually is the way of life for younger generations and has been accelerated by the COVID-19 pandemic.

Developers are now competing to create the next top multiplayer video game. However, the startup costs for developing multiplayer games are incredibly steep. Hiring network engineers that build  and operate the servers necessary to run multiplayer games can cost over $1 million per year. 

Outsource expenses with a flexible, portable cloud offering

Lucid Sight operates an innovative technology stack allowing game creators to develop a multiplayer game without having to run these costly servers themselves. And with tiered pricing, they only pay for what they need every month—allowing them to efficiently scale. 

Competing on simplicity

By combining the power of Colyseus Arena, a cloud hosing service for game developers, and the technology of Lucid Sight, the team has created a powerful yet easy to use infrastructure for developers. 

Game creators replace technical human capital and costly servers with a monthly subscription to Lucid Sight's cloud offering.

Game creators simply host their game on the cloud infrastructure and Lucid Sight's technology delivers server management and scaling. Allowing creators to focus their attention to the actual design and development of their game. 

This cloud offering supports any game type and can be configured to fit creators' needs. And with rapid development combined with authoritative implementation- its easy to build games while voiding client based hacks. 

Colyseus acquisition gives Lucid Sight competitive edge

Lucid Sight has already created 14 games of its own that have been downloaded millions of times. But with the acquisition of Colyseus, Lucid Sight has developed a SaaS cloud-hosting business based around a well-known open source project they operate. 

Downloaded by over 250,000 developers and studios, Colyseus is at the core of thousands of multiplayer projects and games. Over 3,000 developers are active in Colyseus’s community channels, with many contributing to the project. 

With Colyseus' strong following and a high margin SaaS model, the team believes they are on track to reach $38 million in revenue by 2023. 

Projecting $38 million in revenue by 2023

Colyseus powers a number of successful games:

Bubblebox's Raft Wars- a turn-based physics shooter with up to 250,000 Monthly Active Users and processing 500,000,000 requests each month. 

Hammerplay Studios’ latest game Battle Legends- a battle royale pick-up-and-play shooter. Battle Legends recently hit over 5,000 Concurrent Users during a soft launch and will soon be released on iOS, Android, and HTML5. 

Ravalmatic, a game development studio with over 100 titles- has used Colyseus for several of their multiplayer games. 

These are just a few examples of the thousands of projects built on Colyseus, which have seen millions of Monthly Active Users and have processed billions of monthly requests.

High margin SaaS model

Lucid Sight helps develop video games from which it earns revenue, and is focused on generating monthly recurring SaaS cloud-hosting revenue. With a tiered pricing structure, developers only pay for what they need at any given time. 

But once a game becomes popular, the cost to switch to a different server management solution is incredibly high as doing so would cause significant downtime - so once a game takes off, Lucid Sight has them as customer for life. 

The team plans to be fully featured within the next 3 months and is currently lining up their first customers for their new cloud offering. And with this funding round, the team plans to expand into: 

1. Marketplace for plugins (a la Shopify or Salesforce)

2. Scarcity Engine to generate unique tokenized game items (NFTs)

Cloud offering tiered pricing 

$138 billion industry

The global video game industry is valued at over $138 billion and has grown over 250% since 2012. 

Source: Statista

Democratizing the gaming industry 

Lucid Sight believes that open source software will play an increasingly important role in video game development going forward. And by dramatically reducing startup costs, anyone with an idea for a video game can get started. 

By becoming a leader in the space and expanding into marketplaces and blockchain, the team believes they will be prime acquisition targets.  

Natural Acquirers

The founders, Randy Saaf and Octavio Herrera, have been working together for decades. After graduating from the University of California, Irvine and Occidental College, respectively, they bootstrapped an anti piracy company, MediaDefender, and later sold for $42.5M. 

They then went on to create one of the first iPhone gaming companies called AdColony- focusing on java script for iPhone games. They were one of the first companies to receive a key to the App Store and had 14 of first 100 iPhone games. AdColony was backed by Insight Partners and sold for $350M in 2014. 

Now they've set their sights on democratizing the video game industry and creating games on nascent platforms, like blockchain and democratizing the gaming industry to developers. 

Randy Saaf | Co-founder & Chief Executive Officer 

Octavio Herrera | Co-founder & Chief Operating Officer 

In addition to the carried interest Republic Maximal LLC dba Republic Labs is entitled to for the syndicated investments it organizes, which are viewable at https://republic.co/companies under “Privately Funded”, certain principals of Republic Labs have personal interests in these investments, as disclosed below. When making an investment decision please review these disclosures as they represent pre-existing financial interests held by those principals of Republic Labs.