4 min read
You had an idea for a new game (Gaming Startup) that doesn’t exist in the market yet. You gather your team to bring your idea to life, but you get a question every creator gets, “How do I/we fund our game?”
All the doubts, uncertainties, and negative thoughts flood in and it seems impossible to get funds to support your project. Well, no matter how hard it seems, you don’t have to worry about it, here are some options you can try to fund your dream project/s!
Mapping out for Gaming Startup
You have to calculate the amount you’ll be needing to support your game. You can’t just randomly come up with a number, though, a pragmatic approach is required when calculating the amount. You have to consider all the factors that need money, from computers to supplies to all kinds of bills. With an uncertain future, you need to take into consideration all the things.
You also need to be ready for sleepless nights as this journey is not at all easy, there will be rough days with employees quitting or even worse, getting burnt out, things will delay all the time, you’ll be faced with all the odd situations and quick decisions to make. These are the reasons to have a proper plan and also great passion as your flow will be disrupted countless times and things will probably go south. As negative as it seems, these are facts and you need to tackle them in order to make it big.
It means you fund your project with your own money, most probably savings. It can be hard at times, as you have your own bills to pay and it also has high risk because you’ll be burning through your savings. Only a small percentage of people choose to fund their own projects. The thing is if properly planned, bootstrapping is entirely possible and multiple people have proved that.
Asking your loved ones to fund your project has its own pros and cons. The bright side is, lenders here will be more empathetic when you fail or something goes wrong. But one of the major drawbacks is, it can harm your relationship with your loved ones if you mess up the agreement.
To avoid that, here’s how you should approach them.
1. Tell them about your plan.
2. State your repayment system.
3. Explain your backup plan.
4. Prepare a written agreement.
A standard business loan is a way to go for many. You can get the loan in the company’s name if you’ve formed a corporation or an LLC. But your company is new and it has no track records, what do you do? You can still get that loan but on your own credit rating. Once you’ve got that you can apply for a loan, it may take ages to get it approved because of the obvious reasons.
Interest rates are probably high, but one great advantage is you don’t have to worry about extra funds as this loan will be sufficient for all of your expenses. They’ll also give you a time period to pay off your loan which is a motivation in itself to focus and finish your work on time.
Crowdfunding is taking money from a large number of people via donations. This way of getting initial capital is popular with game developers these days. GoFundMe, Indiegogo, and Kickstarter are some of the well-known sites used for crowdfunding. You’re not required to pay back the money unless it’s mentioned. People, at times, do offer some type of compensation in terms of gifts and rewards.
This way of getting funds is easy compared to other options as there are no security issues or waiting for approval from the lender. This doesn’t mean you are free from any liabilities; you should do as stated in the description or policies while asking for funds, that too, on time. If not, it can harm a company’s reputation.
Venture Capital Firms
These firms invest in startups that have huge potential which will then lead to a high return of investment. They are very picky about startups and reject companies left and right if they don’t have a long-term plan. Investors here are likely to join the board of directors or be active in decisions about business, as they have invested the money and want to make sure that they aren’t going to lose it.
This is like free money for your project, you don’t have to repay the amount. However, there are restrictions on how the granted money is spent. You’re supposed to use the money for the purpose it was granted for. If the grant is meant to fund developer support, it can’t be used for any other purposes.
One should note that the organizations who grant the money are picky as well and will only fund those projects which show promise! Because of this reason, competition for grants is really high so you have to go beyond plus ultra if you want a startup grant.
These funds are kind of like a startup grant. Developers ask organizations, who provide game funds, for money and if the organization judges them to be fund-worthy, they’ll fund you for sure. Organizations who offer game funds expect it to be paid back but if developers don’t make enough revenue to pay back the money, organizations eat the loss.
Here are some of the game funds for your Gaming Startup:
1. Indie Fund
3. Cry Engine
In this digital age, you don’t need to worry about funds as there are new ways popping up each day. All you need to worry about is the originality of your creation. If your game is original and creative enough, you’ll find someone who’ll provide you with capital in no time.
Also, there are numerous options, you don’t have to limit yourself to one. But there’s also the possibility of debt, loss of reputation, and stress. Choose the best option according to your needs and work towards your goal! for your successful gaming startup GOOD LUCK!
Thank you for reading and don’t forget to share especially with the people who are creative and looking for gaming startup opportunities for their future growth.