Finding Funds
by bob · in General Discussion · 03/11/2001 (4:14 pm) · 15 replies
So after posting some help wanted ads I've assembled a pretty good team that's ready to go. Design specs are done and it's time to start building, but how do we get funds? Yes we could probably manage with what we're currently equipped with, but funding would bring better tools, helpful books, etc. Is it wrong to ask a company, for example pepsi, to sponsor your game and in exchange for money you put "pepsi posters" on the walls in your game? It's difficult to get the team motivated when everyone knows there isn't any money coming in. Any suggestions? Anybody establish funding? If so how did you do it? Thanks.
Nick
Red Lizard Studios
Nick
Red Lizard Studios
#2
and dont bother going to out of industry companys for funds. aint gonna happen.
seed money is hard if not impossiable sometimes. look into www.ondeco.com. they may be willing to help but only if your totally serious and can have a product in a reasonable amount of time.
best thing to do is create a demo from home/online in the evenings. something playable. a few characters, maps, weapons whatever.
then start showing it off.
better yet look for a lisence. you mean there isnt a spawn vs aliens game out yet!?
make one, market it to them ect
or try this. we all know the game homeworld right? great.
all we see are emotionless ships fighting in space...but what about the people? there HAS to be a special forces unit that raids ships right?
see what i mean? :D
Cheers,
Shaka
03/16/2001 (10:30 pm)
if you want to go this rout you need seed money. no production company is going to touch you if you say "i have a really really cool idea and......."and dont bother going to out of industry companys for funds. aint gonna happen.
seed money is hard if not impossiable sometimes. look into www.ondeco.com. they may be willing to help but only if your totally serious and can have a product in a reasonable amount of time.
best thing to do is create a demo from home/online in the evenings. something playable. a few characters, maps, weapons whatever.
then start showing it off.
better yet look for a lisence. you mean there isnt a spawn vs aliens game out yet!?
make one, market it to them ect
or try this. we all know the game homeworld right? great.
all we see are emotionless ships fighting in space...but what about the people? there HAS to be a special forces unit that raids ships right?
see what i mean? :D
Cheers,
Shaka
#3
I suggest taking a buisness or economics course at college. Running a gaming buisness is just like every other buisness, wouldn't you want to know what to do with one of those?
07/01/2001 (3:54 pm)
There are also government programs that can help fund.I suggest taking a buisness or economics course at college. Running a gaming buisness is just like every other buisness, wouldn't you want to know what to do with one of those?
#4
As for the question of "is it right?" I say that is up to you. Some people seem to think putting commercial product placement in games is bad karma. While some people might yell "sell out!" I say it serves two good purposes. Not only would you get cash to fund your game, but it adds to the realism factor.
Now question is, will companies pay to put their products in a game? Will they pay to put their products in a non-AAA indie project? I kinda doubt that. Marketing is big stuff for Coke, Pepsi, and the like. Their image in extremely important to them, so they probably won't be itching to pay someone to put their trademarks in something that may adversely affect their image.
Good luck.
07/01/2001 (4:25 pm)
You're on the 2 liter a day habit, too? My drug of choice is Mt. Dew, though.As for the question of "is it right?" I say that is up to you. Some people seem to think putting commercial product placement in games is bad karma. While some people might yell "sell out!" I say it serves two good purposes. Not only would you get cash to fund your game, but it adds to the realism factor.
Now question is, will companies pay to put their products in a game? Will they pay to put their products in a non-AAA indie project? I kinda doubt that. Marketing is big stuff for Coke, Pepsi, and the like. Their image in extremely important to them, so they probably won't be itching to pay someone to put their trademarks in something that may adversely affect their image.
Good luck.
#5
I have a relative that got a grant for his company (a scientific instrument company), but with the amount of hoops he had to jump through to get it, he may as well have been earning minimum wage instead.
07/01/2001 (4:25 pm)
Government loans are possible, but grants are very difficult to get. I have a relative that got a grant for his company (a scientific instrument company), but with the amount of hoops he had to jump through to get it, he may as well have been earning minimum wage instead.
#6
you might be surprised how fast a couple hundred here, a couple hundred there adds up. and small money is better than no money.
my advice is think locally. the internet is not the best place to find money.
07/01/2001 (5:44 pm)
one of the best places to find seed money is relatives and friends. if youre serious, of course, most people wont plunk down money for a lark. check out the small business administrations website for how to write a business plan and other tips. then youll have an easier time convincing people you know that youre serious. you might be surprised how fast a couple hundred here, a couple hundred there adds up. and small money is better than no money.
my advice is think locally. the internet is not the best place to find money.
#7
Speaking of the government, I've looked into that whole government grants thing, after seeing one of those ads on television to buy a book (it's much cheaper and faster to look on the internet). The thing with government grants is, you're not bloody likely to find one that will help you start up a game company. The government (I assume we're talking about America, here) hands out money on the stipulation that they can tell you how to spend it. So, when someone says, "I opened a restaurant and made good money," they're not telling you that it might've been in a neighborhood you wouldn't send the National Guard into. So, look at grants as a no-go. Can't help to look, but it's doubtful you'll find anything.
As for loans from non-friends/family, going to a bank would probably be a hard-sell for anyone other than a seasoned professional. "Hi, I've never made a game before, but could you loan me the money to quit my day job and hire a development team so I can make a game that might not ever get beyond ESD?" They're probably going to say no on that one.
Besides, it's not like you have to do something massive your first time out. Make a demo, and get financing from that point. If you can get more downloads than Q3test, then you might be able to convince a lending institution to front you some cash. And, at least then you'll have work-experience and a product to show them, which is what really matters when you're asking (begging) anyone for money.
07/02/2001 (2:51 am)
I agree with Jeff. Stick close to home. Several movies have been made with home-town connections (Do the Right Thing, Evil Dead and Pi, for example). You put together a portfolio, a time-table and business plan, and see what you can get. They'll be a lot more open to loaning or even giving you money than a bank or the government.Speaking of the government, I've looked into that whole government grants thing, after seeing one of those ads on television to buy a book (it's much cheaper and faster to look on the internet). The thing with government grants is, you're not bloody likely to find one that will help you start up a game company. The government (I assume we're talking about America, here) hands out money on the stipulation that they can tell you how to spend it. So, when someone says, "I opened a restaurant and made good money," they're not telling you that it might've been in a neighborhood you wouldn't send the National Guard into. So, look at grants as a no-go. Can't help to look, but it's doubtful you'll find anything.
As for loans from non-friends/family, going to a bank would probably be a hard-sell for anyone other than a seasoned professional. "Hi, I've never made a game before, but could you loan me the money to quit my day job and hire a development team so I can make a game that might not ever get beyond ESD?" They're probably going to say no on that one.
Besides, it's not like you have to do something massive your first time out. Make a demo, and get financing from that point. If you can get more downloads than Q3test, then you might be able to convince a lending institution to front you some cash. And, at least then you'll have work-experience and a product to show them, which is what really matters when you're asking (begging) anyone for money.
#8
Good luck :)
-Brock, Silverlime Communications
07/03/2001 (9:52 am)
It doesn't hurt to try some local venture capital firms. Make sure you have a business plan and that you have an "elevator pitch" which is a two-minute pitch that would instantly grab people's interest in your company. These venture capital firm's make risky investments so they aren't likely to say no if you have a great idea and good management. Try VCapital to learn how to write a business plan and they even have a template for you. Watch out, though. These people ask for a heavy return and you better be positive you can make it. The only way to get out of them is to declare bankruptcy which is not smart. They take everything you own and can put special grants on your house so when you sell it, they get the profit. If you are under 16, they take everything from your parents too. Good luck :)
-Brock, Silverlime Communications
#9
you do that you get 0 returnes BUT you have and office...payroll you can pay...people...equipment...
07/05/2001 (8:41 pm)
sell your first game totally and completly to a VC.you do that you get 0 returnes BUT you have and office...payroll you can pay...people...equipment...
#10
Sort of on the topic of Licensing:
I was wondering if I were to use the V12 engine to develop a game that was a playable version of say...Quantum Leap (sci-fi show) or Dilbert, or something that was based on a copyrighted character or story...
And pitch it to them as a "proof of concept" in order to gain funding...
Do you know if GaarageGames would go for that... I know it says that you cant sell to anyone else... but how else can you seek funding along the licensing route.
Hypothetically of course.
I don't think that I'd have a problem with negotiating with GG to cut them in on the deal big time. I think their eco-model is extremely generous as it is. I especially like their sequel stipulations... that any sequel rights to the game isn't shared with them. Hell for their continued assistance in bringing Dilbert to life a second time... I'd want their help!
Anyway, if you had info on this subject I'd love your input. And anyone wlse's for that matter.
Thanx ALL
08/18/2001 (1:03 pm)
Charles D'Arienzo,Sort of on the topic of Licensing:
I was wondering if I were to use the V12 engine to develop a game that was a playable version of say...Quantum Leap (sci-fi show) or Dilbert, or something that was based on a copyrighted character or story...
And pitch it to them as a "proof of concept" in order to gain funding...
Do you know if GaarageGames would go for that... I know it says that you cant sell to anyone else... but how else can you seek funding along the licensing route.
Hypothetically of course.
I don't think that I'd have a problem with negotiating with GG to cut them in on the deal big time. I think their eco-model is extremely generous as it is. I especially like their sequel stipulations... that any sequel rights to the game isn't shared with them. Hell for their continued assistance in bringing Dilbert to life a second time... I'd want their help!
Anyway, if you had info on this subject I'd love your input. And anyone wlse's for that matter.
Thanx ALL
#11
07/10/2002 (4:31 am)
So I guess Garage Games is like a ghost town. IS ther any NEW activity?
#12
Regarding funding? Programming? Publishing? Forum posts?
IRC? Improvements? ...
Besides the first one, there is almost daily progress and activity in all of them...
07/10/2002 (4:35 am)
What do you mean with "NEW activity"?Regarding funding? Programming? Publishing? Forum posts?
IRC? Improvements? ...
Besides the first one, there is almost daily progress and activity in all of them...
#13
As for activity here in the GG community - jezz... it's hard to keep up with what the heck is going on, and all the new stuff people are doing, etc!
07/10/2002 (7:11 am)
And there's been one minor thing concerning funding too - look for the "So You Want To Start A Game Design Business" article under the resource section. (Note - I wrote that, so I suppose this is a shameless plug. But then again, I wrote it just for people looking for things like funding options. Granted, it only shows one or two ways of doing it, and the reality behind funding.) As for activity here in the GG community - jezz... it's hard to keep up with what the heck is going on, and all the new stuff people are doing, etc!
#14
This doesn't change through money btw. Through money you get motivated people, but you don't make people motivated with money. Those who want to break into the business, are realistic enough to see that mod or garagegames projects won't produce money. The only thing they create is exposure. If someone gets hired, then for another project, which then pays, but the initial project here will never be able to pay money. In some rare occasions more than one person is employed (i.e. a small team). That only happens when a few really dedicated and serious people find each other to produce a game.
Markus
P.S. I'm speaking from experience. I had been working with a team of people for 5 years to get a producer of a major publisher onboard - for the next project. Then the workhorses of said startup company left, because the company lead didn't find time to do his work even though there was cashflow then.
08/07/2002 (12:33 pm)
most projects suffer from the people involved not being serious enough and lacking discipline. Lots of people apply here and there just to try it out. The usual mod symptom.This doesn't change through money btw. Through money you get motivated people, but you don't make people motivated with money. Those who want to break into the business, are realistic enough to see that mod or garagegames projects won't produce money. The only thing they create is exposure. If someone gets hired, then for another project, which then pays, but the initial project here will never be able to pay money. In some rare occasions more than one person is employed (i.e. a small team). That only happens when a few really dedicated and serious people find each other to produce a game.
Markus
P.S. I'm speaking from experience. I had been working with a team of people for 5 years to get a producer of a major publisher onboard - for the next project. Then the workhorses of said startup company left, because the company lead didn't find time to do his work even though there was cashflow then.
#15
A team developed a fps and included as a key element in the game, a virtual representation of a cell phone product which was used to log onto and communicate between players in the game.
If I remember correctly, they got some funding support from the cell phonemanufacturer.
www.virtualgotcha.com/default.asp for more info
... just a thought.
--Mike
09/16/2002 (7:48 am)
A recent release of a very creative concept I saw (a few months back) may be of interest to you...A team developed a fps and included as a key element in the game, a virtual representation of a cell phone product which was used to log onto and communicate between players in the game.
If I remember correctly, they got some funding support from the cell phonemanufacturer.
www.virtualgotcha.com/default.asp for more info
... just a thought.
--Mike
Andrew Chapman
I think you'd have more of a chance if you try the smaller companies, I don't think the big ones listen to the "little" people (How did that term get started anwyay?)
Sorry for not being able to help any, but just figured I had to reply (Don't know why, the logic escapes me completely)