Creating a video game is a joyous creative process, yet it costs a lot of money. Whether you’re independent or with a small team, funding is usually a critical yet not an easy step in realizing your vision. This guide covers the potential means for getting the necessary funding for the creation and launching of your video game.
Self-Funding
Self-funding, or bootstrapping, is financing your vision from your pocket. It can be through personal sources or the profits of earlier ventures. To an extent, this approach offers the greatest freedom but is generally limited by its scope and potentially reckless. Let’s look at the benefits and demerits in closer detail:
Pros
- Complete creative control
- External investors do not put pressure
Cons
- Limited resources
- Personal financial risk
Crowdfunding
You know the saying, “Small drops make a mighty ocean.” That’s the principle that applies here. Crowdfunding is collecting small contributions from many people, usually through the internet, till they sum up to a sizable amount. It can be very effective when testing a new product while at the same time raising capital. It needs a lot of marketing, and public relationship pull through.
Popular Platforms:
In today’s world, other than social media, we now have specific platforms majorly used for crowdfunding, some of which are:
- Kickstarter
- Indiegogo
- Fig
Tips for Success:
To successfully get your desired result using this method, the following are some things you should work on:
- Develop a persuasive tagline and pitch video
- Offer attractive rewards
- Frankly interact with your audience daily
Publisher Funding
With this method, you have more potential to get substantial funding and support, though most of the time, this comes at a cost. Hence, It is good to check various potential publishers and negotiate the terms more closely.
Advantages:
- Access to larger budget
- Marketing and distribution help
Considerations:
- Self-censorship – Loss of creative control.
- Revenue sharing
Government Grants and Tax Incentives
Many countries offer grants or tax breaks specifically for game development. Some of such are::
- Canada Media Fund (Canada)
- UK Games Fund (United Kingdom)
- Film Victoria (Australia)
Your duty now is to research local and national programs that support creative industries in your area.
Angel Investors and Venture Capital
Angel investors and VC firms can contribute a great amount of money, but in return, they want to own shares in the company and sometimes even interfere with its management.
Pros
- Susceptibility to huge expenditures
- It allows for interaction with business players and the acquisition of skills connected to a specific field of operation.
Cons
- Loss of equity
- Pressure to deliver returns
Game Incubators and Accelerators
These programs can provide you with cash, someone to oversee your project, and several other resources for developing and launching your game. Some of the top game incubators and game accelerators are:
- Indie Megabooth
- GameFounders
- London Games Fund Accelerator
Early Access and Paid Alphas
You can use opportunities like Early Access from Steam and similar platforms to sell your unfinished game and get the necessary funds. Also, you can get people’s responses simultaneously and test your game this way.
Strategic Partnerships
This involves partnering with other companies, such as the manufacturers of the hardware or the streaming services. These companies might be able to offer funding in return for the right to be the only ones using that product or use the other company’s branding in exchange.
Tips for Securing Funding
The following are the tips you need to have when seeking funding for your video. The best way to utilize it is by following it step by step:
- Develop a Solid Business Plan: Your proposal must include market analysis and financial projections and clearly show how you plan to monetize your video game.
- Create a Compelling Pitch: When pitching to investors for crowdfunding, you have to clearly state what your game brings to the table. You must be able to convince people enough for them to drop their money.
- Build a Strong Team: To investors, the team backing you is just as important or even more considered than the game idea itself. So, gather a team of people who are just as committed to and skilled as you are. Your team should consist of people with different complementary skills that together provide the business with all it needs.
- Have a Prototype or Demo: A simple demonstrative version of your game will help you back up your funding propositions.
- Understand Your Market: Know your target audience. Understand the gap that exists in that market and how your game can satisfy that demand.
- Be Realistic About Costs: Make sure you have included in your budget not only the cost of developing the product but also of marketing and all types of post-launch support.
- Plan for Contingencies: When requesting funds, it is always important to consider contingencies, costs, and time overruns.
Conclusion
Video game funding has never been an easy task. It involves a lot of brainstorming, energy, and, most of all, planning. By researching different sources of funding and putting effort into each one, you raise the likelihood of getting the required capital to give life to your game. Good luck!