Presented by Xsolla

For indie games, funding can be the biggest obstacle. But in this VB Live event, you’ll learn everything you need to know from the industry’s leading professionals, from tips and best practices for finding and winning the right investor, to pitching, negotiating and more.

Register here for free.

“There has never been so much money available in the games industry, and much of it is directly aimed at Funding indie games,” said Nathan Sölbrandt, Business Development Manager for Europe at Xsolla Funding. For example, the EU has committed to: record-breaking grant for games. But as game engines continue to improve and third-party marketplaces give everyone instant access to development tools, the barriers to entry have also dropped significantly.

“It has never been easier to become a game developer,” says Sölbrandt. “More money is available for funding, but technological advancement has had a deflationary effect on game development, leading to an amount of competition that was unfathomable a decade ago.”

How do you cut through the noise and be successful in finding the financing option that suits you and the ambition you have, not only for your game, but also for the life of your studio?

Set your sights on a market

At the highest level, Developers need to understand what their goals are before even thinking about the best path to funding, or the funding most useful to the game.

“Unfortunately, given the crowds at the moment, having a good game doesn’t guarantee it’s a good investment,” says Sölbrandt. “If it’s not positioned correctly, if it doesn’t stand out, if you haven’t thought about where it fits in the market, it’s challenging.”

It’s about identifying who your audience is — what they’re playing now and why they’d switch to your game in the first place — and building a business case around that market, what sets you apart, and why you’re best positioned to make a splash.

Setting the Goal Posts

Next, consider your studio’s ambitions, what kind of studio you want to be. Is the goal to build IP around a title that grows into a franchise, or to keep shipping lots of small games? Do you want to grow your team and are you willing to become a manager, or do you want to stay on the development side?

“Nobody starts game development because they like raising money. They want to make games,” says Sölbrandt. “For me, it is only after a team clearly articulates these ambitions that you can have a conversation about the most suitable financing partner.”

For example, if you’re looking to build IP, you’ll typically want to look for equity, raise larger amounts, and speed up your development timeline. For much smaller games of different styles you would go for publishers but if you want to expand a studio, increase your workforce, act fast and build a bigger game especially if you are at an indie level of experience it will be hard to find a publisher willing to fund that.

Developing the right pitch

The foundation for a pitch includes an accurate budget and timeline, and the overall aesthetic. Budget is usually the most pressing concern, and while it’s tempting, avoid the mistake of offering flexibility (for example, “We want $500K, but we can work with $100K”).

“The paradox here, which I see a lot in the indie space, is developers think that if they make their demand cheaper, it will be more attractive. They take money out of the budget because they think it gives them a better chance of financing,” says Sölbrandt. “But the publisher or investor is starting to get nervous that there won’t be enough money to finish the game, and then they’ll hit the hook.”

And for some investors, conveying a feel for the overall aesthetic is also very important. If you can not only offer a nice pitch deck and artwork, but also demonstrate your positioning against existing games, those with industry experience can really quickly get a sense of where this game fits in the market, he adds.

“We had a pitching competition on Devcom this year and a group got up and just nailed their positioning with their first slide,” he says. “You could see that it clicked for everyone right away.”

Alternative financing sources

The financing landscape is more varied than ever before, from grants and crowdsourcing to venture capital, project investments, co-investments, publishers and platform holders. Xsolla Funding offers products such as the Xsolla Funding Club, a free matchmaking service to connect developers with more than 190 publishers and investors. The company tests every game and has helped more than 90 games secure funding in the past two years.

More recently, it launched the Xsolla Games Investment Platform in the US and Xsolla Accelerator. The Game Investment Platform is designed to make game financing more accessible to investors and developers with revenue-sharing deals. It allows high net worth individuals to invest directly in video games and developers to receive funding from multiple investors; Xsolla takes care of the middle ground and facilitates the matchmaking, legal, financial logistics and so on – something like a gaming-focused Kickstarter for accredited investors. With Accelerator, developers have the opportunity to participate in an intensive 16-week program of mentorship on all topics related to a game’s success, plus bridging funding of up to $100,000.

Wherever you end up in your funding journey, the thing developers need to keep at the forefront is their passion for games, from playing them to creating them. The road gets extremely frustrating at times, with conventional wisdom sometimes out of line with real world experiences, especially on the VC side.

“It’s good to see it a bit like a game,” says Sölbrandt. “No one is successful the first time. With every game you’ve ever played or enjoyed, the developers have been in a similar position to you as a developer at one point or another. It’s not always as daunting as you think – and there are so many resources available these days.”

To learn more about how the funding process works, new ways to tap into funding, and best practices to get your best shot, don’t miss this VB Live event!

Register here for free.

agenda

• Pitching basics from crafting to delivery
• Best practices for the most effective vertical slice/playable build
• What kind of investor is best?
• How do you find and convince the right investor?
• Where to find alternative financing sources?

presenters

• Nathan SölbrandtBusiness Development Manager Europe – Financing, Xsolla
• Lawrence MienDirector Partner Experience, Xsolla
• Dean TakahashiLead Writer, GamesBeat (Moderator)