The need for continuous financing is one of the most significant challenges faced by independent game developers. Every stage of the process, from conceptualization to the acquisition of individual assets to marketing, is costly, and if enough funding is not secured, the project can be scrapped before it ever begins production. The use of $300 dollar loans from Greendayonline as a source of funding is becoming more common.
Another option is by investors. Although they provide certain advantages, such as a Rolodex filled with connections, the criteria for equity that they put on the end product as well as the limitations that they impose on the creator might limit the creator’s vision and the process. However, investors are not your only option when it comes to obtaining funding.
Be careful to keep the following things in mind while you explore various avenues to get financial backing in order to create your own independent video game:
- Construct a prototype of your game in your spare time, either by yourself or in collaboration with others, in order to create your first playable demo.
- To avoid giving away too much of your company too early, you should begin by soliciting financial backing from close associates and family members.
- Find a co-founder with existing investor connections.
- Take a look at the companies that invest in venture capital.
- When playing video games, you should think about using accelerators.
Make sure that your presentation has an attention-grabbing pitch deck.
You are going to need a pitch that is both well-organized and appealing if you want to be successful in luring investors to your business endeavor. When you are building your pitch deck, there are a few crucial things that you should make sure to touch on in order to attract investors that are interested in independent video games.
- Be particular in the audience that you want to attract.
Your target audience has to be articulated very specifically in your pitch deck. Do you want to market your video game to children, or do you have your sights set on releasing a game with an M rating from the ESRB? Investors have an interest in knowing, and one reason for this is that there is a possibility that they will not be interested in operating in a specific market. It is essential to provide investors with information on the method by which your product will be advertised, and one of the most effective methods to do this is to be familiar with the target market.
- Take a peek at presentations made by other companies’ decks that provide sources for developers.
Raw Fury, a Swedish video game producer, has accumulated a large amount of information and tools that any independent game creator should go over. The absolutely free folder on Dropbox that contains different components of the pitch deck includes everything, including financial records, legal documents, as well as overviews of marketing and sales.
The website provides a substantial archive of Raw Fury’s personal papers, which may serve as a useful resource for independent developers working on the development of the ideal presentation. Explore each folder in order to find templates that might make the process of creating a successful pitch deck much simpler than beginning the process by starting from scratch. You shouldn’t put all of your eggs in one basket. Tiny Build and IndieGameReady are only two of the many alternative platforms that you may want to investigate more.
An example of a publishing agreement is the piece of document that is the most important to have. It’s possible that, out of all the contracts you have to sign in order to have your game published, this one is the most important. It describes everything in minute detail, from the ownership rights to the amount of compensation to be paid out.
If you enter into an unwise agreement, it might end in you losing the right to choose your own rules and having no say in the process of creating new ones. Consider getting a third party as well as a business partner or adviser to review any publication agreements with you before signing them.
- Construct a deck using the game and the characteristics it provides as its primary focal point, and pay attention to detail.
You have a limited amount of time to convey your argument, so you need to choose it well in order to make the most of the opportunity. You should have ready a dozen slides that will be used in your presentation and that specifically explain your game. It will talk about the game’s genre, its main story structure, as well as the gameplay components and characteristics that assist to set it apart from other games of the same sort.
However, the specifics of the game are not the only thing that matter. Make certain that one of your slides covers the market analysis. Be explicit about the audience that you are addressing and the nature of the statement that you are making. Where do we stand in terms of market share? How did other games that were like this one fare? What can you do to differentiate yourself from your other rivals and get the attention of your target audience’s customers? To make a significant amount of money, all you need to do is enter a single market.
Even if there is just one person on the team, it is important to ensure that investors are aware of who is working on their behalf. The next step is to have a quick conversation about the principal players, their culture, any prior releases (if there are any), and your primary aim. Mention it in the event that you feel investors should be aware of a certain facet of the development team that you believe is vital. It would be helpful if you could tell us who you are.
- Let’s discuss the economics of your business together, as well as the equity agreement that you are hoping to get.
When it comes to investors, the question of whether or not your company should be at the top of their list may often come down to numbers. You shouldn’t be scared to speak about the equity offer that you want, but you should give some room for bargaining in the event that it comes up. However, the most crucial thing you can do is to be totally forthright about the business’s financial standing.
Even if you have a lot of debt and are struggling to pay your bills, you should still tell them the truth. Make it a point to avoid any unpleasant shocks, particularly those that could render any contractual arrangement null and void.
Do not leave out the mention of your blood, sweat, and tears. What percentage of your personal money have you donated to the initiative thus far? And what exactly is the current state of it?
- Prove your credentials
In addition to that, the pitch deck must be able to market your company. What kind of experience do you have or do you have that makes working with you worth the money?
If this is not your first time working with an independent firm, you should provide an example that demonstrates that you have the capacity to get your game up and running. This is especially important if this is not your first time working with an independent company. The purpose of a significant portion of your pitch deck should be to instill confidence, not just in potential investors but also in yourself.
Start by soliciting relatives and friends for introductions to potential angel investors.
In the beginning, you may be seeking to establish a connection with a major video game producer. However, the very first thing you need to do is to speak with an angel investor in case you want to cash in the early stages.
Exactly what does it mean to be an angel investor? Who precisely is an angel investor and what do they do? Investors from the private sector often participate in initiatives that need a significant amount of capital in return for a small share of the stock in the venture. They aren’t interested in taking command of the project so much as they want to make a fast buck off of it. An angel investor may be a wealthy business magnate or perhaps a member of the same family who has just come into a significant amount of money.
One of the many advantages of angel investors is that it is often possible to get participation from more than one. You might look for a second investor in the event that the first one is unable to amass sufficient funds to cover the price of the project’s development. Watch how much of your company’s equity you put up for sale to the general public.
An angel investment will allow you to swiftly spend money on marketing, expanding teams, and even adding that feature that you didn’t believe you’d be able to finance since you didn’t think you’d have the means to fund it. After the transfer of the funds has been completed, you are free to make use of the funds to further develop your company provided that there are no restrictions on their use.
Find a business partner or co-founder who has previous expertise in the company’s process of business growth
You could have a concept for creating video games, but you are not very business-aware. This might be a problem. Both are necessary in order to guarantee the launch of an independent video game successfully. If this is the circumstance you find yourself in at the moment, it may be the correct time to start searching for a co-founder who has experience in the creation of business-related projects.
It’s possible that you spend the whole day buried in code, and then you spend the evening figuring out the script. Despite this, while you are taking care of the game’s mechanisms, Who is building the basis of the fan base? Who is responsible for submitting the necessary tax papers and building contacts with potential angel investors?
On your squad, there must be at least one person who is competent to take charge of the game on their own or who can provide assistance with the management of the commercial side of things. It is essential to have a co-founder or partner that has a strong understanding of business in order to be successful in the many facets of game creation that are not directly related to the process of game production. Even if you don’t have any previous expertise to show, forming a partnership with someone like this might make you more appealing to potential investors.
There are several different approaches you may take to find someone to manage the business side of your project for you. Most of the time, it’s the income, but you need to be cautious of how much you’re providing, particularly if your finances are limited. It is in everyone’s best interest to promote a game administrator to the role of co-founder and provide them with shares. This will ensure that their compensation is directly tied to the success of the game. As was just discussed, though, be sure that you do not donate more than you are able to pay for.
Nobody should be allowed to participate in your independent initiative. Get to know potential collaborators in order to determine whether or not they share your goals and can contribute to the completion of your project by filling in any gaps. Examine them carefully and carry out your due diligence research on possible business partners by using existing ties, previous jobs, or people you already know from the industry. Create a presentation for prospective business partners that highlights the positive outcomes that might result from working together and outlines the possible customer base for your company.
Get in touch with the book’s authors.
The developers and publishers of video games are vitally important members of the production team. The publisher is responsible for exposing your game to the general audience and providing you with access to a variety of markets. Your game may be launched on its own using services such as Steam, which makes this possibility feasible. Having said that, how sure are you that you are in your skills to oversee a successful marketing strategy that will assist you in selling your game?
You will be able to increase the number of people who read your book and even distribute it across a number of other platforms if you work with a publisher. When you are just getting started with your project, it is in your best interest to hire a reputable publisher so that you may learn the fundamentals, develop as a business, and avoid giving up any ownership.
If you want to work with a video game publisher, one of the requirements is that you give up the right to collect a cut of the profits directly from sales. In accordance with the agreement that you signed with the publishers, the mode of payment will be outlined in the corresponding clause of the contract. If you want to get the most money out of your release, you should try to negotiate an upfront cash payment rather than a pay-later deal if you have the ability to do so.
When you are negotiating the contract, you need to keep in mind that your publisher has already agreed to the provisions of the contract and is planning to benefit from your efforts. Keep this in mind at all times. It is essential that you search for financial investments made by your publications. The investment in the project, followed by the division of risks, and finally the sharing of profits, is a wonderful way to get started.
You may be able to negotiate a higher amount of investment if you provide information about the scale of your project and the sales you anticipate making. Bear in mind that the higher your request is and the less personal investment you’ve already made in the project, the bigger the portion of the earnings that you will need to forego in order to meet your desire.
- Taking on all of the expenditures associated with marketing
- It serves as a source of funding and manages the process of distribution in all of its facets.
- You get the opportunity to provide comments about your game, which offers visibility that would be difficult to obtain otherwise.