Getting funding for your video game is one of the most challenging aspects of game development. Investors and publishers are looking for a project that has the potential to succeed in their specific market. There are a few different ways to get funded for your video game. One way is to work with a publisher. However, this often means losing some control over the process.
Don’t Be Afraid to Ask For Help
Developing video games is a costly undertaking. Even modest-sized games require the work of a team of people with a range of skills. As a result, video game studios often seek external funding to support their development projects. However, finding outside investors is a challenging task. Investors are interested in high-growth companies with the potential to make a significant return on their investment. Therefore, you need to convince investors that your video game has the potential to achieve high sales and profitability.
One of the most common ways for video game developers to raise money is by seeking a publisher. A game publisher is a company that finances, develops, and markets video games. Game publishers typically look at several factors when evaluating a new game, including its genre, storyline, and gameplay features. Before approaching a publisher, you must review a sample publishing agreement with a business partner or attorney. Doing so will help ensure you are not signing a contract that leaves you without rights to your video game.
Don’t Be Afraid to Take Risks
A video game developer’s biggest hurdle is funding. The amount of money required to create a game is enormous, and persuading people to give you their hard-earned cash for a product they won’t get for 12 months is no easy feat. For this reason, the best way to get your game funded is to approach a video game commerce company like Xsolla video game funding. It is important to remember that securing investors can be a long process, and you should start looking for potential investment opportunities while your project is still in its early stages.
Be Realistic
Video game development isn’t cheap and requires much time and effort. As such, it can be challenging to get funding. However, there are several things you may do to raise your chances of success. The first step is to be realistic about the potential of your game. It is important to remember that investors and publishers are primarily looking for new opportunities. Therefore, your game must be unique and potentially make money. Also, crowdfunding is the most popular way to fund a video game. However, it is essential to understand that this method can be hazardous.
Three times as many games fail to make their goal as those that do. It is because crowdfunding campaigns are incredibly time-consuming and costly to manage. In addition, they are often public, which can lead to a lot of pressure. As such, this method is best suited for experienced developers who can take on the risks and demands of a crowdfunding campaign.
Be Flexible
One of the biggest obstacles to game development is funding. While many game devs start with a passion project that they self-fund, this can only take them so far – and to get the game to market, they will need some external investment. For some game devs, the apparent solution is crowdfunding. However, this can be risky as it will involve selling a part of the game or its intellectual rights to backers in exchange for the funds they provide.
It can also be a long process; three times as many video games fail to meet their funding goals as they succeed. There are other ways to fund a video game – including through private equity or venture capital. The latter can be a great option as it will allow you to choose your investor and potentially receive tax reliefs such as EIS or SEIS. This type of funding can be more challenging to secure, but it may be worth exploring if you have the necessary industry connections.
Be Honest
Video game development is one of the riskiest business endeavors in existence. Investors know this and won’t just throw money at a video game neophyte. It is why it’s essential, to be honest about your project when seeking funding. It would help if you were realistic about your goals, timelines, and plans for the game. It is especially true if you’re looking to secure funding via equity or private investors. This type of funding requires a lot of preparation to find and pitch your game.
Many game devs lack the industry connections to find backers or hone their pitching skills. It can significantly limit your chances of securing funding. When pursuing video game funding, having a lawyer on your side is also a good idea to help you negotiate contracts. An ill-conceived publishing agreement could leave you with no rights to your game or limited say in its release process. Ensure your lawyer knows gaming law and can translate the jargon often appearing in these documents.
