Introduction

Substantial financial resources are needed to successfully bring a game to market. Finding the best lender who fully understands the challenges of the gaming industry is the solution. 

What is game funding?

Game funding is financial support used to develop and market video games. Traditional publisher funding involves a game development studio receiving financial backing from a video game publisher, which usually gains distribution and profit rights in return. Some developers self-fund using their own savings to maintain creative control, which can be risky. Investor funding from venture capitalists or angel game investors is another option for businesses with a solid track record or compelling game concepts. Crowdfunding is popular through platforms like Kickstarter, allowing developers to raise gaming funds from future users in exchange for rewards. Government grants and subsidies provide non-repayable support in some areas. Revenue sharing on platforms supporting user-generated content also offers ways to earn revenue from assets. Developers often blend these methods based on their project's needs and financial strategies.

Why is funding essential for game development?

Funding is essential for game development because it covers important aspects of bringing a game to market, including development, marketing, and distribution costs.

Covers development, marketing, and distribution costs.

The development phase requires substantial financial resources for hiring skilled talent like programmers, designers, artists, and sound engineers, as well as securing the necessary technology and software licenses. Licensing intellectual property like a popular toy or movie franchise is also a big upfront cost. Once the game is developed, significant funding for games is needed for marketing to ensure the game reaches its target audience, which includes advertising, promotional events, and public relations. Distribution costs are a factor, whether the game is distributed digitally across platforms or involves packaging and logistics. Without adequate game funding, maintaining the quality of the game and ensuring its successful launch and wide availability can be challenging.

How does game funding impact the quality and success of a game?

Enhances game quality and market success through better resources and talent.

Game funding impacts both the quality and success of a video game by enabling developers to access better resources and talent. With adequate funding, developers can afford to hire experienced professionals across multiple disciplines, including design, programming, and art. This expertise improves the game's quality, leading to more advanced gameplay, and higher-quality graphics.

Sufficient game funding allows for better marketing strategy, which is vital for the game's market success. It enables developers to invest in advertising campaigns, public relations efforts, and promotional events to increase visibility and attract potential players. These marketing efforts help build a strong initial user base and maintain momentum post-launch.

Finally, using Intellectual Property (IP) like characters and storylines from movies, TV shows, and toy franchises can drive a lot of success for video games. Popular IP with built-in fandom helps a game break through and gain traction, which can often drastically improve the short-term and long-term success of a game.

Types of game funding

Different types of game funding have strategic implications, and developers should consider their needs, potential risks, and the level of control they are willing to share when choosing how to fund their projects.

• Loans: Developers can secure loans from financial institutions, which need to be repaid over time with interest. This method provides immediate capital but comes with debt, especially if the game doesn't succeed financially. Additionally. banks often have strict requirements that businesses must meet to access capital.

  
  

• Crowdfunding: Platforms like Kickstarter and Indiegogo allow developers to raise funds directly from future players and indie game investors. This provides the necessary capital without debt and is a way to gauge public interest and build community around the game before its release.

  
  

• Publishers: Partnering with a game publisher can provide financial backing, with resources for marketing and distribution. In exchange, publishers typically require a portion of the game's revenues and significant control over the development process, which influences creative decisions.

  
  

• Investors: Venture capitalists or angel investors provide funding in exchange for equity in the gaming company. This option works for developers with a proven track record or an innovative project.

  
  

• Government Grants: Some governments offer grants to support the creative industries, including video gaming. These grants don't require repayment, making them an attractive option. However, they may come with stipulations regarding the project or spending.

Strategies for securing game funding

Securing game funding, particularly for indie developers, requires a combination of well-crafted pitches, strategic self-promotion, and robust networking. Here’s how these elements work together to open up funding opportunities:

Writing a successful game funding pitch

A successful game funding pitch should communicate your game's unique aspects, target audience, and market potential, including a detailed business plan, engaging visuals or demos, and clear financial projections. It should detail the team's expertise to reassure funders of the game’s viability.

Attracting funding as an indie developer

To attract funding, indie game developers should create a prototype to demonstrate their game’s potential. Contact Sanlo for financing options specifically for those in the gaming industry.

The role of networking

Networking is essential in the gaming industry, expanding connections with potential investors, publishers, and collaborators at events like gaming conventions and online communities, which may create funding opportunities.

Challenges and risks of game funding

Dependence on external funding sources like investors or crowdfunding can introduce pressures to alter creative visions,  compromising the game’s originality. However, inadequate funding can lead to unfinished projects or compromised quality if budget constraints force cuts during critical phases of development. Crowdfunding creates a public commitment to deliver the project, increasing the stakes of failure. These funding sources present the challenge of accurately predicting costs and revenue, which is difficult in the unpredictable gaming market, leading to financial shortfalls and project delays.

Start your game’s funding journey

To increase prospects for successfully financing your game and bringing it to market, Sanlo provides funding to help grow your business. Easily apply within minutes. We can approve your game funding quickly. 

How Sanlo can benefit game companies 

Sanlo is specifically designed to support game developers, offering tools and solutions to empower business growth. We help track financial data and provide capital for growth, ensuring you retain complete control and ownership of your business. Our support is designed to help you thrive in the gaming industry.

Provides tailored financial solutions, helping developers manage cash flow and scale efficiently.

Sanlo delivers customized financial solutions to help game developers manage cash flow and scale operations. Sanlo provides financing specifically for the gaming industry, unlike most traditional banks with generic products not suited for game development, and some require personal guarantees. 

Offers flexible funding options to meet various development and operational needs.

Sanlo provides flexible funding solutions for development and operations. Our terms include a simple fee and payment schedule without hidden charges or complex formulas. Funding options include a line of credit, instant payout, or fixed-term capital.

Capital to grow without giving up ownership

Sanlo offers up to $1 million to fund games, allowing you to secure the necessary capital to grow your business without relinquishing control. Sanlo's non-dilutive funding means you maintain complete ownership and operational autonomy because we’ll never take ownership of your company.

Conclusion

Robust funding from Sanlo improves the chances of your game’s success. To increase capital for your business and ensure the success of your game, contact Sanlo today.