Presented by Xsolla
Games are expensive to create, and securing funding is a challenge even for experienced developers. In this VB Live event, join GamesBeat’s Dean Takahashi and a panel of pros for advice on determining the funding you need, setting up a meeting, crafting and delivering a pitch, and more. .
“There have never been so many games in the history of the industry – and there has never been so much money to look for good games,” says Justin Berenbaum, vice president, strategic planning and Managing Director of the Xsolla Funding Club. “In my 25+ year investment and money career in the gaming industry, this is probably the craziest time I have seen.”
Highlights big industry news – Embracer Group’s acquisition frenzy, the recent from Microsoft series of investments, Ten cents 31 consecutive transactions last year and more. New funds appear, like Griffin Gaming, Galaxy Fund, Kowloon, Makers, etc. Independent publishers like Raw Fury and Devolver are gaining a foothold by investing money in new independent titles. Some are investing in what Berenbaum calls triple-I games like recent EA Originals titles, which combine independent creativity with triple A production values.
But if there is more money in the market than ever before, it’s still a challenge for new developers to tap into the wealth.
Obstacles and funding opportunities
Overall, investor expectations have increased dramatically over the past few years. The quality of new developer prototypes sets the bar higher for what is meaningful or investable.
On the positive side, these developers are helping to push the boundaries of what is possible and the future. On the flip side, this has made it harder for developers who don’t have enough self-funding or access to cash early on to get a game to a solid state. They are at a great disadvantage when competing with people who have that ability and that experience.
“I can tell you now that most of the games I’ve seen in the last couple of years are only signed if they have a solid prototype,” Berenbaum said. “Very rarely, someone can just put together a good pitch and expect to be signed off unless they’ve been there and done it.”
Finding the publishers’ money is the most difficult, because the competition is fierce. Raw Fury could see 1,200 to 1,500 game slots per year, but will only sign two to five. The other challenges are having access to the right people and knowing where to find the funds.
Fortunately for developers, there are plenty of other self-publishing possibilities. Companies like Kowloon will offer a simple development contract to complete a game and self-publish it. Crowdfunding, although more difficult than it sounds, can be a lucrative avenue. There are more angels than ever before, giving money to newbie developers. Some successful developers throw their name and their money behind new games. And matchmaking platforms like Xsolla’s Funding Club are designed to facilitate matchmaking between developers and investors.
“Our philosophy is that you don’t know where the next big game will come from, so the more games that can get funding, the more opportunities there are for great games to come out of nowhere,” he said. said Berenbaum.
Building a successful pitch
Sometimes a great game can speak for itself, but only if you introduce yourself to the right people. Unfortunately, landing a meeting is often a matter of luck, relationships and being in the right place at the right time. Don’t be fooled by chance: a strong pitch and presentation sets you apart from the crowd and convinces investors that you have a great idea for a game.
“Just as you keep improving and working on your game, you have to do it with your pitch and your presentation,” says Berenbaum. “It’s not an easy skill, and continually improving it should be your goal. “
A court has a lot of moving parts, and it starts with thinking about what’s best for you and your game. Does your team have the ability to self-edit? Could you bring in people who can help you in this area, or would you hire outside of public relations and marketing? Do you have a publication project? If you’re going to self-publish, do you have money for quality assurance, localization, and other publishing costs?
“You have to think of this a lot more as a business than just making a game,” says Berenbaum. “I used to joke that the games were Scud missiles. We build, build, build, shoot at launch and hope they hit the mark. Now even a small indie premium game is a living, breathing thing. “
In other words, games aren’t fire and oblivion – it’s about community, updates, fixes and bug fixes, additional content, and more. More than ever, investors and publishers are looking for developers who build a long-term plan, not just the delivery of a game.
Don’t miss this VB Live event for more information from top investors. You will learn how to develop a successful fundraising strategy and a strong case, how to approach the investors of your dreams, how to determine when innovative new funding opportunities might be your best and most lucrative bet, and more.
Do not miss!
You will discover :
- Funding Available For Game Developers Now
- Determine if an investor is the right partner
- Alternative financing options taking center stage
- Build a portfolio and a pitch
- Navigate successfully through meetings with potential investors
- And more
- Salone Sehgal, general partner, Lumikai Ltd.
- Amy wu, Partner, Lightspeed Venture Partners
- Justin berenbaum, Vice-President, Strategic Planning and General Manager, Xsolla Funding Club
- Dean Takahashi, Senior Editor, GamesBeat (moderator)