Funding a Game: Finding Money for an Indie Mobile Game
You have a game idea to transform it into a prototype; you will need money. Then to transform this prototype into a real game, you will need money again. Even if you have an off-the-shelf game, you will still need money to promote it.
But how does a game get funded? Where will you get money to complete your game?
Funding Models
There are lots of different ways that you can get paid for a game. Six of the most common funding methods are below:
1. Self-Funding
Self-funding, as the name implies, is a model where you fund the development of your game. It is also called bootstrapping.
So, you need to put in the labor, time, and money in your game. With this model, you can ask financial support from your family or friends. If you are lucky enough, they might give you the money you need.
Although self-funding is not easy, it gives you some advantages like full control over your game and money. You will be the only one to decide what your game will be like and how much money you will spend on each item.
Self-funding usually means limited resources. Most of the time, families and friends don’t own resources as investors do. This means, if you don’t have a generous sponsor, you will need to limit your expenses.
2. Investors
A game investor is a person or company who commits capital with the expectation of return on investment.
Finding an investor is among the most popular options for funding a game. Whether it is an investment firm, an angel investor, or a venture capitalist, any investor would help you with all their resources.
First, you will need to reach investors and convince them to listen to your idea or project. Many investors expect you to find a mutual connection and ask them to introduce you. If you don’t know anyone, you can still try your chance by trying to connect them on LinkedIn with a convincing message.
Each year Forbes publishes The Midas List, which covers the best venture capital investors. Here is the 2020 version of it. Checking it out might give you an idea about the leading investors, and you can specifically work on reaching out to them.
You don’t have to target them personally. Investors are usually members of a larger organization like a venture capitalist firm or angel investor association. You can reach these organizations by sending an email or filling a form on their website. For example, London Venture Partners , Play Ventures , Sisu Game Ventures , and Makers Fund are among the venture capital firms that focus on games.
Investors take risks by funding your game. That is why you need to convince them that your game deserves an investment. Study the investors you are aiming for, consider their probable questions they might ask, and get prepared accordingly.
3. Publishers
A publisher is a company that publishes games that have been developed externally by a game developer.
Publishers finance the development, distribution, and promotion of a game.
Publishers help you distribute your game as widely as possible. They cover many costs and take a share in return until the budget invested in the game is recaptured. This share is typically between 10% and 20%.
Publishers offer you different resources like testing, user interface design consultancy, marketing, and promotion, etc. All these resources would help you detect the points that need improvement, make necessary changes, distribute your game on the most effective channels, and increase its reach as much as possible.
Although proceeding with a publisher is an effective funding method, it takes time. Publishers are busy and have to evaluate hundreds of applications. That is why getting an answer and starting the process might take longer than you expect. Besides, if your game is accepted, keep in mind that the publisher will promote it under their own brand. So, if you don’t like to lose such control, launching your game with a publisher might not be the right method for you.
If you’d like to give a chance to publishers as a funding option, check this link covering publishers that focus on mobile games.
4. Grants
From governments to private companies many organizations offer grants.
For example, Creative Europe offers grants in Europe. There are country-based programs as well. Join The Game from France, The Sweden Game Arena from Sweden, and The UK Games Fund from the United Kingdom are among these examples.
In addition to governments, some game companies also offer grants. One of the most popular examples is Epic Mega Grants of Epic Games. With this program, Epic Games commits $100.000.000, and grants range from $5.000 to $500.000.
Examples abound. There are many other local programs in each country. All you have to do is searching for them on the web. When you find the right program, follow the steps on their website for the application.
Once you receive a grant, you need to follow the procedures to report your progress. They might also ask you to provide reports at set milestones during production. At the end of the funding period, you might need to submit a detailed report. So, be prepared.
5. Crowdfunding
Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a game.
The crowdfunding process is often rewards-based. And for gaming, gamers often receive advance copies of the game as a reward. Sometimes they also receive merchandise as a gift.
There are popular crowdfunding platforms like Kickstarter and Indiegogo. Many of them include sections for games. Besides, there are some game-oriented funding platforms like Fig. Fig has a different model. In addition to standard crowdfunding, the platform also allows accredited investors to equity crowdfunding. This gives investors a chance to get a share of the game’s profits that they invested.
Although crowdfunding is always an option, keep in mind that it is not an easy job, and success rates might be lower than you expect.
7. Accelerators and Incubators
Startup accelerators and incubators are business programs that support startups to develop or scale their businesses. While incubators help entrepreneurs build a business model and company, accelerators help them grow and scale-up.
These organizations provide startups with various resources like funding, mentorship, and network. First, you need to find the right program. You will need to fill a form to apply to the program. As you are accepted to the program, you will get funded with seed money that ranges from $10.000 to $200.000. You will give equity in exchange for this support. This money would help you to afford initial expenses that you’ll need to handle.
These programs, which take 3–6 months, are full of seminars, workshops, mentorship sessions, and networking opportunities. These programs usually end with a demo day where each startup makes a presentation to a crowd, including investors. This might be the best chance to reach the right contacts for your future fundraising tours. So, make sure that you prepare a convincing pitch.
Here is a list of incubators and accelerators that game startups can apply.
Conclusion
Developing and launching a game requires resources. Having a large budget from the very beginning would help you take the right steps on time. There are many paths game developers can choose to fund their mobile games, such as asking family and friends, crowdfunding, and securing investors. Think about your goals, requirements, and evaluate each option with its pros and cons. Proceeding with an option that fits your expectations would contribute to your success.
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