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Chapter 3. Financing a Game Development ... > Raising Money/Financing the EarlySta... - Pg. 59

Financing a Game Development Venture 59 Raising Money/Financing the EarlyStage Venture If you are a start-up, now that you know how much money you need to make your pitch build (or your full build, if you want to self-publish or try for the higher royalties of a finished game), it is time to raise it. Raising money for a company is never easy, and the high rate of failure for game devel- opers doesn't make it much easier. On the other hand, the industry has the glow of expanding and generating profits all through the recent recession, which has given it some cachet in the public and investing audience. Furthermore, a game company is something that everyone with a console or a PC can relate to, which is always helpful when pitching. This section will help you answer three core questions of financing your company: · Who might fund you? · What materials should you prepare to make your pitch? · How do you take the investment into your company? The practice of institutional equity financing is not currently common in the game development in- dustry, but given the escalating cost of production and the rapid expansion of financing solutions and groups seeking to fund game development, it makes sense for developers to have a passing knowledge of the price of institutional money. This is discussed in the "Equity Investment Term Sheets" section. Sources of Funding Technically speaking, there are several sources of funding available for start-up companies, but practically speaking, an early-stage developer is only likely to shake fruit from one of four trees: friends and family, publishers, angel investors, or a game-focused financing entity.