Karim Farghaly talks about Scarab Entertainment
Karim Farghly, CEO of Scarab Entertainment
What is the idea behind your company? We develop and publish children’s apps and games based on global iconic brands. We target the the highest adoption platforms such as mobile, Facebook but also the home consoles.
How did you come up with the idea?
As an executive in the video game industry for almost 20 years I have had the opportunity to work with some of the biggest brands in a licensing capacity, amongst others. I have experienced the power of global brands and how they can help games being discovered by consumers. As we move to a digital vs. retail market environment, discoverability becomes even more costly and brands/licenses reduce this cost dramatically resulting in quicker profitability.
How long have you been in operations?
Our company was created in May 2009. Until 2012 we put deals together for other clients/publishers by sourcing licenses, development teams capturing a piece of the revenue. We quickly noticed that we could provide a higher value added by acquiring licensing rights, funding our own development and publishing our own products.
How did you get the business off the
Since we modified our business model in July 2012, I Bootstrapped by investing personal funds into the company and applying them towards development. For our larger projects, we obtained development funding by selling distribution rights to our games to publishing partners.
What are your current and projected revenues?
In 2012 our revenue was slightly under $100k and consisting largely of revenue share from legacy deals. In 2013 we are projected to generate about $750k in revenue.
What was the most challenging aspect?
The most challenging aspect of the business has been the Bootstrapping part of it and ensuring that funds were available to pay our developers on time in order to complete the projects. Access to more capital would have enabled us to create better products and allowed me to focus more on quality.
What’s next for your company?
We have just signed a 3 year worldwide partnership with a very popular toy brand which will be announced July 23. We are already developing concepts for games based on this brand which we are looking forward to release starting in 2014. We are also discussing some sports partnerships around a trading card game concept.
What advice do you have for other entrepreneurs?
If you believe in it, just take the jump and stay the course.
What resources have you found to be most
Our development teams are almost exclusively based in Texas, especially in and around Austin. Texas gives us access to a very highly talented pool of people who are passionate about making games, artists, programmers, designers, etc.