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Project investments

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Hello everyone, I wonder is it hard to find investments for a game development projects. Why I ask is because I want to try making a business for searching investments. I didn't found any information about it. If I make it, will it be profitable in case of helping beginner projects, who dont yet have a customer? What troubles will I meet?

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Hello En, you wrote:

>I wonder is it hard to find investments for a game development projects.

Very.

>Why I ask is because I want to try making a business for searching investments.

I don't understand. Your business will do what, exactly?

>I didn't found any information about it.

Right. What search strings did you try? What you need to read is stories of developers trying to get funding (not stories of people setting up businesses to help developers get funding - if that's what you mean).

>If I make it, will it be profitable in case of helping beginner projects, who dont yet have a customer?

By "customer" do you mean "investor"? Or do you mean "publisher"?

>What troubles will I meet?

If you want to set up a business to broker loans to fledgling game developers, you will find a LOT of fledgling game developers but close to zero lenders, buyers, or publishers.

Not sure exactly what it is you want to do, or what experience you have in business, or how much capital you have.

Tom

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In perspective I consider making some kind of exchange.

1.We will be looking for best projects, which seems good to us.
2. People will give them as much investments as they want
3. We will get a percentage from transactions
4. After successful realization of a project investors will get a beforehand specified amount of money.

It is the way I see it.

My idea can appear crazy.

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Quote:
Original post by Enjoy
In perspective I consider making some kind of exchange.

1.We will be looking for best projects, which seems good to us.
2. People will give them as much investments as they want
3. We will get a percentage from transactions
4. After successful realization of a project investors will get a beforehand specified amount of money.

It is the way I see it.

My idea can appear crazy.


So you are saying that:

* Investor provides ideas and money.
* You provide workers.

This sometimes works, but ONLY if you have a talented team with an established track record of completing games. Anybody with enough money to fund you is going to insist that you have the ability and experience needed to complete the project.

One detail you forgot, for #4, is that generally it works the other way around. The person funding the project gets all the money until they start making a profit, and only after that do you get a cut. The investment money is an advance on the profits, and like any similar loan, it costs you money.

So if you have a group of talented and experienced people, then yes it is possible (but difficult) to find investors and start a small studio.

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En wrote:
>1.We will be looking for best projects, which seems good to us.

I don't understand. Please explain - these projects come from where? Publishers? Developers? Amateurs?

>2. People will give them as much investments as they want

I don't understand. Please explain - who are these people who invest? And who are these people who receive the investment funds?

Your points 3 and 4 are clear. What isn't clear is your point 5 - if someone makes a game using the investment funds brokered by you, by what means is the game taken into the market? In other words, how do you get the finished game licensed to a publisher?
Tom

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Quote:
Original post by Enjoy
I wonder is it hard to find investments for a game development projects.
Yes, it is extremely hard. Game development is not an investment friendly business. It's cash hungry and its hard to grow a company (which is a primary driver for investors). Those investors who are willing focus on specific areas that they see have the most potential (or are the current buzz) such as MMOs. Even then they tend to invest only in companies with a long track record or new start-ups which are set up by individuals who have a long track record in senior industry positions or have experience raising investment.

Quote:
Why I ask is because I want to try making a business for searching investments. I didn't found any information about it. If I make it, will it be profitable in case of helping beginner projects, who dont yet have a customer?

What do you mean by "beginner projects"? If you mean people who have never made a game before then the answer is no. Investors won't put money into companies set up by beginners. The risk is simply too high.

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Quote:
Original post by Obscure
What do you mean by "beginner projects"? If you mean people who have never made a game before then the answer is no. Investors won't put money into companies set up by beginners. The risk is simply too high.

Is teams must complite one thrilling game project to get investor's money?

PS: MMOs is very hard to develop :(

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Quote:
Original post by SMP
Is teams must complite one thrilling game project to get investor's money?
Yes

Quote:
PS: MMOs is very hard to develop :(
I know that and all the publishers know that (but lots of start-pup developers don't seem to know that). This is exactly what investors won't invest in start-ups. Too much risk of failure.

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Guest Anonymous Poster
I don't see the value in a company that seeks investors on my behalf. I can do this on my own. Besides, there is a lot of entrepreneur support from government agencies already and getting a list of local angel investors is relatively straightforward. And also, I would do my own sales & investor pitches as I know my products and my business plan inside out; here again there is no need for a middleman to make those pitches on my behalf.

What is it *exactly* that you bring to the table?

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