Why raising funds for gaming is hard

gaming industry is the new Hollywood, but game developers and gamers have a major funding challenge. Here are a few challenges faced by gamers and how to solve these problems.

Getting Game Development Funding Can Be Difficult-

Securing finance is one of the most difficult aspects of the game production process. This is why.

Finding it Difficult to Get Funded

It’s difficult to get money. To back up your pitch to potential investors, you’ll need to put in a lot of time and effort into demos and market research.

Uncertainty Where to Look for Backers If you don’t know where to search, finding backers can be challenging. To attract backers for your project, you’ll need to establish a presence and make relationships in the game development community at least 9 months ahead of your fundraising campaign.

Projects that have been canceled

You might be successful in obtaining funds, only to have the project canceled. Then you’ll have to start all over again to raise the funds you’ll need to develop your game.

Opportunities come with obstacles. Since many people are remaining at home due to COVID-19, there is a higher demand for games than ever before. And that opens up a lot of doors, particularly for indie studios and startups.

Team Experience and history of successful game shipping-

Making a successful app is often about ideas and execution, both of which are heavily reliant on your team. It’s perhaps the single most essential aspect in deciding the games’ success. Putting together a good team, on the other hand, is far from simple. Programming, design and art, sound engineering, business development, and project management will all be covered by the group. It’s just a matter of finding the appropriate people and bringing them together. Mentoring and leadership are also required.

Game development takes a lot of money as the game when launched, has to be good-

The game sector requires a significant amount of investment, and when it is launched, it must be successful; otherwise, your investment will be for nought, and you will wind up in debt!

Building a perfect pitch deck for the gaming industry is difficult-

Pitch decks for gaming companies are significantly different from pitch decks for traditional startups, as the concept of a minimally viable platform (MVP) does not work, as you are not solving a customer pain point where early adopters will put up with defects and bugs to get their problems mostly solved.

It requires excellent storytelling and communication about how everything will turn out in the future. It’s also tough to find examples for the gaming sector.

Funding options-

There are several options for obtaining game development funding. Here are a few of the most popular.

Self-Funding

Many indie studios get their start thanks to the founder — you. You’ll keep your existing job rather than quitting to concentrate on your game full-time. However, you will have to work twice as hard as before. During the day, you’ll continue to work for your current job. You’ll also work on your project at night and at weekends. This can be a good approach to get started until your project has progressed far enough to warrant funding.

Publishers

Publishers are an excellent source of funding for your project. Publishers, after all, have a lot of experience releasing and promoting games.

However, getting in front of publishers might be difficult. It’s easier to pitch a publisher if you’ve worked on successful games. If you haven’t already, Unity provides some excellent suggestions, including visiting industry events like GDC. Also, have a pitch ready at all times. You never know when you’re going to run across a publisher.

Investors

Another traditional source of finance is through investors. Venture capitalists (VCs) and angel investors are two types of investors. Friends, family, and other acquaintances could be angel investors.

Don’t be scared to ask family and friends for help. Ascertain that they are aware of the danger and your enthusiasm for the project. If you aren’t serious about following through, you don’t want to risk burning bridges.

Crowdfunding

Crowdfunding for video game creation is becoming increasingly popular. It also offers indie studios and start-ups some unique options. On a crowdsourcing platform like Kickstarter, anyone may launch a fundraiser.

When it comes to promotion, crowdfunding can be challenging. You’ll need a solid marketing strategy for your crowdfunded game.

Grants

Grants are another source of game development funding that you can pursue. Many organizations — including Unreal and CryEngine — offer grants for indie studios.

These grants can be competitive. Your project will need to have progressed far enough to have a chance of winning a grant.

How to Obtain Funding for Game Development

The following are the procedures to effectively obtain game development funding.

1. Come up with a fantastic idea

To begin, you’ll need a fantastic game concept. It should be one of a kind. It should also have a strong hook. But having a good idea isn’t enough.

You won’t be able to secure finance just because you have a wonderful idea. Before requesting finance, you’ll need to put in the effort to bring your idea to life.

2. Begin with self-financing.

It’s a good idea to keep your day job while you work on your project. Until your game is far enough along to receive funding from other sources, use your paycheck to self-fund it.

3. Create a Team

You can only achieve so much on your own before you need to solicit the assistance of others.

Every great game necessitates the presence of the following individuals:

The individual who came up with the concept.

The person with the ability to develop.

The individual who possesses — or knows how to get — money.

Are you having trouble locating a member of your team? Participating in the open-source community is one method to do so. Contributing to someone else’s project is an excellent method to meet people with whom you may cooperate on your own.

It’s critical to begin collaborating once you’ve discovered your team. Working asynchronously is one example. It should also involve gatherings for meetings. It’s easier than ever to get your team together to communicate thanks to technologies like Zoom — even if you can’t all be in the same room.

4. Create as much of the game as you can

After you’ve assembled a crew, you’ll need to flesh out as much of the game as possible before looking for funding.

You’ll need to do the following:

Put the concept to the test.

Make some code.

Make a working prototype.

You’ll need the following tools to achieve this well:

IDE. Game engine.

Graphics software.

Control over the versions.

Management of a project.

5. Look for other sources of funding.

You want to get as far along in the development process as feasible before seeking finance. Once you’ve reached this phase, it’s time to put together your prototype and pitch — and begin looking for funding from the following sources:

• Publishers.
• Investors.
• Crowdfunding.
• Grants.

Our mission is to back the teams creating fun, meaning, and possibility in the virtual world, to bring us one step closer in the physical world.

They provide Funding in 5 Stages-

Bitkraft -

Built by founders for founders, Bitkraft is a global investment platform for gaming, esports, and interactive media.

We focus on Seed, Series A, and Series B investments in gaming content and IP, interactive platforms, and horizontal technology.

Playventures-

We invest early into the most promising free-to-play and Web3 game studios, and games services startups from across the globe.

We live to help ambitious and passionate entrepreneurs create the next $100M+ gaming powerhouse.

We focus on Seed and Series A.

Magnifier-

Magnifier acts as an ultimate long-term financial partner, providing growth capital, business expertise, and operational excellence.

It makes teams dream bigger. To create freely. To grow faster. To repeat proudly.

Vgames-

Vgames is the venture fund for game entrepreneurs. Having both worked with some of the youngest and most mature developers, we have a deep understanding of what it takes to build a great game. We are passionate about games, crypto, NFT, and supporting companies as they grow to become global leaders.

They provide investment in — Seed, Series A, Series B, Series C.

Griffingp-

Investing at the intersection of Content, Software Infrastructure, Social Platforms, and gaming-related Web3 companies. Griffin Gaming Partners is one of the world’s largest venture funds focused exclusively on gaming, with over $1 billion under management.

They provide investment to all stages.

Hiro Capital-

INVESTORS IN THE FUTURE

Hiro Capital invests in the UK, European, and North American innovators in Videogames, Esports, Streaming, and Digital Sports. We invest in Metaverse technology founders and Game creators who are building the future. We believe that Games and Games technologies will be at the heart of next-generation human societies. For us, play is deep. We are battle-scarred entrepreneurs who back next-generation entrepreneurs. We have founded games and technology disruptors worth billions of dollars. We have led companies from startups to IPO in London and New York. We are gamers and sports nerds. We love games, stories, characters, and deep tech.

They provide investment in — Seed, Series A, Series B, Series C

LVP-

Investing in the game’s leaders of the future.

We invest in people. That means founders with the potential to build the best in the world; teams with terrific, creative games development skills, or fantastic ideas for revolutionary games technology or services and a vision that sets them apart.

March Capital-

March Capital is a top-tier venture capital & growth equity firm headquartered in Santa Monica, California, and investing globally since 2014. We identify entrepreneurs with a provocative vision to lead the future and later-stage companies poised for hyper-growth, then dare to go all-in by leading rounds with deep conviction and concentration risk.

They provide investment to- Early Stage, Seed and Series A

1 up Venture-

At 1Up Ventures, we are building a diverse and inclusive community of the most talented, experienced, and creative independent game developers in the world. We believe that by working together we can help each other be more successful.

They provide investment to- Seed, Series A, Series B, Series C.

MTG-

We are a leading pure-play in esports and gaming entertainment, with an attractive company portfolio comprising some of the strongest brands in the industry. Through our strategic investments, operational support, and active-owner management, we are developing the preferred home for entrepreneurs.

They provide investment to- Seed, Series A, Series B, Series C, Series D

Makers fund-

Our passion for interactive entertainment shapes our values and drives our desire for industry innovation.

They provide investment to- Seed, Series A, Series B, Series C

Lumikai-

Lumikai combines the Latin word for ‘light’ with the Japanese word for ‘tribe.’

India’s interactive market is entering a golden age. Our purpose is to be the lighthouse VC fund catalyzing India’s ‘ripe for disruption’ gaming and interactive media industries.

They provide investment to Early-stage founders Tips and tricks for pitch decks-

Make interesting titles:

Instead of “Team,” the title should read “We’ve shipped 35 free-to-play titles in our combined 20 years in the industry.”

Show the game you have developed nothing can beat the prototype.

Use visuals from aesthetics for your presentations from your game. Create an immersive experience for investors.

Maintain a straightforward approach.

Less is more: Less content more the story easy to remember.

Simple is tough try making your idea look simple and an obvious choice.

Explain things in a straightforward, easy-to-understand manner. Make it simple for investors to understand why your company is a good investment.

Remember it is an iterative process no one gets it right in the first go the more you pitch the more feedback you get and your pitch improves along the way.

Crafting your pitch deck can be daunting and learning PowerPoint skills does not help any founder get their game any better so if you struggle way too much with the deck it might be a good idea to seek help from experts in the field.

And utilize your time and energy saved from crafting pitch decks into building relationships with investors and publishers so that you can get a warm introduction.

If you are struggling with the pitch deck and it is taking too much of your time it might be a good idea to seek help from experts in the field.

CONCLUSION -

Pitching a new idea, in the first go won’t give a positive remark but over a period of time with various feedback accumulated, you can improvise your idea and strategizes your plan. Crafting a pitch deck is a daunting task and learning skills in PowerPoint won’t help if you don’t how to implement it.

Hence, seeking expert help is a good idea as it will save your energy and ensure that your idea becomes successful.

"ARTICLE WRITTEN BY : MALLIKA DODEJA"

Passionate about writing, exploring both the world outside and the universe inside of me to find my hidden treasures.

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