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How to get funding to set up a games company in British Columbia
British Columbia offers a robust ecosystem of financial support for game studios, centered on a strategic combination of federal grants, provincial tax credits, and specialized labor incentives.
- The Canada Media Fund offers competitive grants of up to $1.2 million for innovative projects, contingent upon the studio providing 25 percent in matching funds.
- Studios can claim a 17.5 percent Interactive Digital Media Tax Credit on eligible labor costs to reduce operational expenses.
- Fiscal stability can be enhanced by stacking the Interactive Digital Media Tax Credit with federal Scientific Research and Experimental Development (SR&ED) tax credits.
How to raise funds from Chinese investors
Chinese investment in Western mobile gaming is primarily motivated by the pursuit of strategic synergies, the acquisition of specialized talent, and the exploitation of financial arbitrage opportunities.
- Chinese investors primarily target mid-to-growth stage studios that demonstrate consistent profitability and a proven track record to facilitate regulatory approval for international transactions.
- Acquisition deals typically feature an upfront cash payment of approximately 30 percent, with the remaining balance structured as earnouts and share-based incentives to align management with long-term growth.
- Due to a lack of local Western expertise, Chinese firms generally adopt a hands-off management approach, preferring to retain existing leadership to operate the business independently.
Trends in mobile game investments
The mobile gaming industry is currently defined by extreme market saturation, where a small number of dominant players capture the vast majority of revenue.
- The mobile gaming market is highly saturated and dominated by a small number of major publishers, making it increasingly difficult for new studios to break into the top 100 grossing charts.
- Rising user acquisition costs, particularly for loyal users, have made sustainable growth a more viable strategy for emerging studios than aiming for immediate blockbuster success.
- Institutional investment has shifted away from pure content development toward platform services, analytics, and virtual or augmented reality startups.
Trends in mobile game funding
The panel discussion at Pocket Gamer Connects Vancouver 2016 explores the evolving landscape of institutional funding for mobile game studios.
- Top-tier mobile titles now require substantial marketing and development budgets ranging from $20 million to $40 million to achieve and maintain chart positions.
- Institutional investors prioritize studios that demonstrate a proven track record, technical expertise, and the ability to pivot based on data-driven execution.
- The mobile gaming market is characterized as a highly competitive 'red ocean,' necessitating defensible intellectual property and clear competitive advantages to secure funding.
How to go big in Vancouver
Vancouver serves as a robust hub for game development, defined by a highly interconnected talent pool and a culture that prioritizes iterative learning and mutual support.
- Vancouver's game development ecosystem currently lacks the billion-dollar anchor companies found in regions like Silicon Valley or Helsinki, creating a gap in scaling studios to $100 million in annual revenue.
- To achieve long-term stability and maintain creative control, studios should prioritize financial independence through early revenue generation rather than relying on venture capital.
- Operational growth in the region is hindered by high labor costs, housing affordability challenges, and a localized shortage of expertise in user acquisition and monetization.
Faith: Investeringar i globala digitala innehållsproducenter
Intellectual property serves as the fundamental engine for investment and growth within the global digital content sector, particularly within the Swedish and Nordic gaming industries.
- Intellectual property is the primary driver of industry transactions, accounting for 68 to 77 percent of all analyzed deals between 2015 and 2017.
- The core value of gaming companies has shifted from technical infrastructure to intangible assets, specifically creative content, brand equity, and proprietary game design.
- Long-term commercial viability for studios now depends on the rigorous legal protection and active management of copyright and trademark assets to prevent cloning and unauthorized distribution.
How to get funding and/or a publishing deal
This panel discussion, held at Pocket Gamer Connects London 2016, explores the complexities of securing funding and publishing deals within the independent game industry.
- Securing funding requires more than a concept; developers must present a high-quality prototype, a clear business roadmap, and evidence of their team's ability to execute.
- Publishers provide value beyond capital by offering marketing expertise, user acquisition support, platform-specific technical optimization, and strategic monetization guidance.
- The funding landscape is increasingly competitive, with a market shift toward higher production values and a greater necessity for visibility in saturated storefronts like Steam.
The golden rules for game devs looking to raise institutional funding
Securing institutional funding in the gaming industry requires a strategic shift toward free-to-play mobile models, as the top-grossing charts are dominated by a small number of large, established players.
- Institutional investors prioritize studios with a proven track record in mobile free-to-play development, specifically favoring teams that have previously placed titles on the top 200 grossing lists.
- Studios must appoint a dedicated commercial director to manage the intersection of game development, financial management, user acquisition, and business intelligence to satisfy investor requirements.
- Fundraising success depends on treating game development as a data-driven business, requiring internal expertise in monetization, marketing, and platform relations with Apple and Google.
Pitching games to investors at Pocket Gamer Connects London 2016
Securing investment in the mobile gaming sector requires a shift in focus from broad market statistics to the specific strengths of the product and the development team.
- Investors prioritize visual gameplay demonstrations over text-heavy presentations, as the primary goal of a pitch is to secure a follow-up meeting by articulating a unique value proposition.
- Successful pitches must demonstrate a deep understanding of retention metrics, monetization strategies, and the operational realities of live-service games to mitigate the impact of high user acquisition costs.
- Founders should avoid focusing on exit strategies or early equity dilution, instead providing concrete performance data from previous titles and a realistic path to profitability.
Why VCs like IPC Ventures want to invest in teams not products
IPC Ventures prioritizes investments in cohesive, high-growth teams and sustainable corporate entities over individual game projects or single intellectual properties.
- IPC Ventures prioritizes investment in scalable, high-growth studios over individual game projects or single intellectual properties.
- Venture capital is intended for building sustainable corporate entities rather than serving as a mechanism for project financing, debt relief, or salary subsidization.
- Investors differentiate between 'lifestyle businesses' that are cash-flow positive and 'scalable ventures' that possess the necessary trajectory for significant market impact.
How Pollen VC helps you accelerate your cashflow
Mobile developers frequently face significant cash flow constraints due to the standard 30-to-60-day payment cycles imposed by major app stores.
- Mobile developers face significant cash flow constraints due to standard 30-to-60-day payment cycles from major app stores, which trap earned revenue and hinder reinvestment.
- Pollen VC provides a mechanism to access locked app store revenue on a weekly basis, allowing developers to maintain consistent growth momentum.
- The operational model integrates directly with app store accounts to verify daily revenue accrual, enabling disbursements to bank accounts or ad networks every seven days.
Myriad's Barrie Dowsett on getting public money for your game
Securing public funding for game development in the United Kingdom involves navigating a complex landscape of grants and tax incentives.
- Developers can leverage non-repayable grants and tax incentives to de-risk projects, retain intellectual property, and avoid equity dilution.
- Innovate UK grants typically cover 40% to 65% of project costs for early-stage research and prototyping, while Horizon 2020 SME instruments offer up to 70% funding for commercialization projects.
- The Video Games Tax Relief (VGTR) provides a 20% rebate on production costs for qualifying British games, which can be claimed alongside other incentives.