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Financing in Action > Financing in Action - Pg. 53

Financing a Game Development Venture · "Screenshots" and representative art for every section of the document (Jean and Alex) 53 New staff or not, the group was recognizing that its initial $25K would probably need a boostto cover costs--software, travel to pitch meetings, rent, a network, and maybe evenstipends--until a deal came through. A big staff would probably decrease the amount of timerequired to build the prototype and pitch materials, but it might mean getting an office, a realnetwork, more software, and maybe even computers if everyone didn't have her own. As Dana presented it, the group had two options: either forgo a fundraising and do everythingby the bootstraps or scratch up some money and give away some of the company.Bootstrapping was a definite possibility, but would probably add a lot of time to their development schedule. "Further- more," she noted, "we'll have to have some kind of office and networkfor a publisher to look at when they come around for due diligence." Raising money wouldtake time and attorneys' fees and would probably mean giving up a chunk of the company, butit would give them breathing room and the ability to focus on the game. It was decided that Dusty and Alex would talk to their old staffers to see if they wanted tocome to work on Double D's prototype, with the understanding that they would be paid a smallstipend until the company got a deal. Dana would come up with a budget based on theassumption that they would have a staff of 15 working in an office and that Double D wouldn'tsee a check for another 8 to 10 months. She and Michael discussed Double D's funding options. Because the amount of money neededby the group was relatively small, friends and family seemed like a good option. An angelinvestor would be great, but no one in Double D knew any. Michael said that he knew of a fewpeople who might be interested in funding Double D, but Dana would have to draft a goodbusiness plan to show them. Dana mentioned some of the game industry's financiers, but saidthat she would just as soon stay local and simple.