DMYI SPAC – DMY III Diving Into Mobile Gaming

A World Before Apps - The APP Company

Intro:

For DMY Tech III, Nosediving into two industries is no easy task. To be specific, 2 of the biggest industries: the mobile app industry & the consumer internet industry. According to DMY tech, it was mainly due to Google and Apple that these two industries have boomed. Following the model of these big corporations, they strive to attract large groups of people to the mobile apps and ads of the companies/business they invest in or sponsor. Gaming, education, and e-commerce are only a few of the sectors their expanding into. Since this is the third SPAC they’ve created so far, the company is undoubtedly knowledgeable of this kind of industry associated with SPAC’s. Their focus is on companies with “enterprise valuations in the range of $500 million to $1.5 billion“.

Management Team:

The team, composed of only two people (CEO Nicolose De Massi and Chairman Harry You), is unique. They are one of the few SPAC’s without an actual corporation sponsoring them. Initially, these two people formed DMY Tech I first and raised $230 million in a public offering during Feb of 2020. This led to the creation of DMY Tech III later on.

CEO – Nicolas de Massi

Mr. de Massi received both his Bachelors Degree and Masters Degree (in Physics) from Cambridge University. He has a lot of experience working with mobile apps and similar industry’s. Mr. de Massi is also very knowledgable in fields such as the “IoT” (“Internet of Things”). IoT is defined as a group of devices that are able to transfer data from one to another without any human interaction. According to the bio on DMY Tech’s website, Mr. de Masi “has consummated over 25 mergers and acquisitions and has raised approximately $1 billion in equity to support public and private companies he has led.” This is a huge feat and no easy task to accomplish.

Mr. de Masi has worked a lot in the past with Glu, a mobile gaming leader (since 2010). He’s worked as a member of the Board of Directors there, serving as Chairman of the company. Because of this mans work that the company was actually able to recover itself from its early distressed stages. Mr. de Masi helped to reshape Glu by focusing on “freemium” social apps, smartphone platforms, etc. It allowed many new investments to be made, launching the company to increase revenue from $30 million (in 2010) to $1 billion (in 2018).

But he didn’t stop there. Mr. de Masi eventually went on to develop a few of the worlds first mobile VR (virtual reality) and AR (augmented reality) experiences. Some of his interests include Mavenir, UCLA, Glu Mobile, Resideo, and more. As CEO, Nicolose has gained a lot of prior experience, raising over $1.4 billion in equity for the various companies he’s led. More info can be found on his LinkedIn profile here.

Niccolo de Masi talks about the growth seen in mobile apps

Chairman – Harry You

Having a lot of experience before becoming Chairman of DMY Tech helped Mr. You a lot. According to DMY Tech’s website “Mr. You holds an M.A. in Economics from Yale University and a B.A. in Economics from Harvard College”. This is 2 valuable degree’s from 2 of the most prestigious university’s in the nation. After finishing his school career, he spent more than a decade on Wall Street. During his time there he served positions such as managing director in the Investment Banking Division of Morgan Stanley. In fact, according to the info on DMY’s website, in 2004 he was “ranked #1 Chief Financial Officer by Institutional Investor in the Computer Services & IT Consulting sector”. This is already an amazing feat by itself.

Moving on, in 2008 he joined EMC Corporation, serving as the Executive Vice President (in the office of the chairman). During his time there, he oversaw corporate strategy and new business development (ex. mergers and acquisitions). Mr. You has served in numerous other executive positions too. This includes: Director of Korn Ferry International (a global executive recruiting company), CEO of BearingPoint (an IT and management consultancy), and more.

Later on, in 2016 he founded GTY Tech Holdings (a company with similar goals as DMY Tech). From 2016 to 2019 he served as the company’s Director and CFO. GTY was defined as “a software as a service (“SaaS”) company that offers a cloud-based suite of solutions for the public sector in North America.”

Sectors of Focus:

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According to a pdf from their website, DMY Tech III is mainly focusing on “Companies developing disruptive and key enablement
technologies for consumer-facing apps in these segments, such as artificial intelligence (“AI”), machine learning (“ML”), cloud infrastructures and quantum computing are also within the scope of this search.” Here are some possible targets for this SPAC:

Intellectsoft: This company is a very suitable target considering DMY Tech III is very focused on the mobile app industry. Providing services such as mobile development and product engineering, it’s a very valuable opportunity. More info can be found here.

Sensor Tower: According to the company’s crunchbase profile they provide “market intelligence and analytics for the mobile app economy through their software suite.” This description is exactly what this SPAC is looking for, so this is a more than suitable target as a company to work with. It coincides perfectly since both this company and DMY Tech III have interests in the mobile app economy.

Zco Corporation: This corporation works in a number of industries such as the mobile app industry and Web Apps. Not only are they a private company but they also have projects delving into augmented reality (one of CEO Nicolas de Massi’s specialties). More specifically, this company is important as a potential target because it can help DMY Tech III to develop the needed softwares for the mobile apps.

Deal Insights:

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For DMY Tech III, investing in the mobile app industry is a very smart decision. Ever since the term “entertainment” was invented, things like television (TV) and movies have become a social norm. But even those things are already getting overrun by a new entertainment industry: mobile apps. This has a unique feature allowing people to access their favorite pastimes anywhere and anytime, without restrictions.

Another one is mobile gaming and gaming in general. According to an article written by Matthew Ball, one of the reasons he listed was “Gaming Has Unprecedented Content Leverage”. Specific examples are cited, such as how video games often have extra gameplay that gives people options to play and explore the game more. This is something that shows and movies aren’t able to do. As most people know, the first movie or show in a series is almost always the best, and it usually goes downhill from there.

Deals

In terms of deals, DMY Tech isn’t looking too shabby either. According to an article by Bloomberg, DMY Tech recently made a merger deal with gaming tech company Rush Street Interactive. This company not only works with games, but they offer sports betting too. This is a great chance for this SPAC to branch out into new sectors of the tech industry. Although (at the time the article was published) the deal wasn’t finalized yet, meaning that the talks could end, possibly. Also its become more popular for companies to merge with SPAC’s (due to the pandemic) giving DMY Tech more opportunities.

Another deal their establishing is with Genius Sports. According to an article by Todd Shriber, Genius Sports has clients in big org’s like the NBA, making it a valuable target for SPAC’s. This is especially important at a time when sports betting is a huge deal in the US too. The background of this company is they apparently utilize technology to combine the world of sport and media. More info can be found here.

Conclusion:

Considering how much potential the mobile app and gaming/tech industries have, this SPAC is on its way to success already. Being led by 2 very experienced individuals gives DMY Tech another edge too. With all the companies this SPAC can target, it’s safe to say they wont run out of investments anytime soon. Also this SPAC is making moves to collaborate with other mobile app/tech companies too. All in all, this SPAC is well equipped to succeed in their said industry.

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