Video gaming has evolved from a cherished childhood hobby into a billion-dollar industry, with significant revenue projected in the coming years. Turning gaming passion into a career is challenging, with securing funding for games being a primary hurdle, where a salary loan might provide a viable solution. This article explores cost-effective ways to achieve that goal.
Advantages of Game Funding
Creating a game is not a one-person endeavor. You’ll likely need a team of publishers, animators, developers, creators, and graphic designers. Simply put, you need funds to pay your team and propel your project forward. But game funding offers several other benefits:
- It provides a broader perspective of the gaming industry.
- A larger team fosters better idea development.
- It reduces potential financial losses.
- You gain access to expert knowledge.
- It enhances the production quality of your game.
- It opens up wider distribution channels.
- It boosts promotion and marketing opportunities for indie games.
- It expands networking opportunities.
Top 6 Ways to Fund Your Indie Games
Indie games, crafted by small teams or solo developers, often struggle with cross-platform distribution, limiting their reach. But this doesn’t have to be your story. Here are some funding strategies to turn your indie game into a blockbuster, like Undertale or Thomas Was Alone.
Crowdfunding
Crowdfunding involves presenting your game idea to the public to secure development funds. While it seems straightforward, the process has challenges. Marketing to board game investors can be costly, and you may need to part with equity to secure funding. Additionally, if your campaign falls short, you might have to seek additional resources.
There’s also the risk of exposing your idea to competitors without protection. However, crowdfunding offers upsides. Platforms like Kickstarter, Indiegogo, and Patreon connect you with potential investors. The key to success is effectively selling your concept. Advantages include:
- Retaining game equity
- Access to a centralized pool of investors
- Increased opportunities to build a player base
- Improved prototype testing
- Early market testing before launch
Video Game Grants and Tax Relief
Avoid loans for game funding to prevent asset loss in case of project failure. Instead, pursue competitive government grants that offer significant funds without marketing costs, supporting innovative ideas with societal benefits. Notable grant providers include Creative Europe and Unreal Dev Grants. Additionally, leverage tax relief programs, like Video Games Tax Relief, to supplement your project’s budget.
Using NFTs for Marketing Indie Games
Non-fungible tokens (NFTs) are effective tools for funding and marketing indie games, enhancing player engagement and opportunities in the Metaverse. Since a landmark $69 million NFT sale in 2021, both gaming and NFT industries have grown. Game developers can sell digital art to boost interest, protected by copyright, with royalties from resales. Decentraland exemplifies NFT use, with virtual land traded for profits.
Venture Capital Funding
Venture capital has become a significant funding source for video game development, especially during the COVID-19 pandemic. It offers financial support and business expertise, with investors handling tax and legal responsibilities. However, it might limit developers’ control over their businesses. Notable venture capital firms in the gaming industry include London Venture Partners, Play Ventures, Makers Fund, Bitkraft, Khosla, Greycroft, and NFX.
Game Art Outsourcing
Outsourcing game art is a cost-effective strategy, allowing developers to allocate funds to other stages of development. By working with specialized studios, freelancers, or part-time designers, it saves time and money on marketing, prototype testing, and animations, promoting smarter, not harder, work.
Bootstrapping
Self-funding, or bootstrapping, is a viable option for launching a project, like a video game studio. By leveraging personal savings, assets, or wages, entrepreneurs can maintain full ownership and control, avoiding contracts and ownership disputes. However, it may necessitate saving in advance.
