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Thread: Where to find funding for Kickstarter videogame?

  1. #11
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    Quote Originally Posted by Donnie18 View Post
    Shenmue I and II had budgets over $70 million since they were funded by Sega. This sequel took over a decade to materialise after the second game precisely because of the fact that Yu Suzuki was looking for people to give him the AAA budget that this needs in order to please the fans who have been waiting this long. By the way, this is a Kickstarter project. It raised over $6.7M! Now while that is a very good amount of money, it is nothing compared to the budget required.
    I'm a little confused. You're involved in a project whose 1st and 2nd iterations have raised that kind of money before and has already proven to be successful. Why are you now at a loss for how to raise money again? Why can't you repeat what you've already done? What's changed? Who's the CFO? have they ever done this before?

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    Quote Originally Posted by Harold Mansfield View Post
    I'm a little confused. You're involved in a project whose 1st and 2nd iterations have raised that kind of money before and has already proven to be successful. Why are you now at a loss for how to raise money again? Why can't you repeat what you've already done? What's changed? Who's the CFO? have they ever done this before?
    This should sum it all up https://en.m.wikipedia.org/wiki/Shenmue sorry for the confusion.

    To the previous poster, I must say that the idea of seeking help from Blizzard/Activision sounds interesting. Maybe it's worth trying.

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    Very interesting, but I'm also a bit confused. It is very impressive to raise 6 million on a non-equity crowdfunder site. A fantastic achievement. That clearly shows interest and a fan base. But then I read that the first 2 versions lost money. So the obvious question is why would anyone invest large money in a project that has a history of failure?

    I admit I don't know the games or the developer, or the gaming business at all. How is it monetized, a purchase or a subscription? Can you demonstrate how this version will be successful in spite of previous failures. What is the price and how many would be needed to purchase to recover 50 million? I don't know the pricing but if it's priced at $ 100 you would need at least 500,000 just to break even. Is that reasonable to expect?

    To me the obvious is to partner with a large company already in that business. With just a team of "developers" , no matter how good, I can't see an institution investing. They want to know about the final marketing and sales strategy. Partnering with a large company that has the marketing muscle might make it more attractive. Large institutional investors do not take risks, everything must be in place.

    Now, what you might do is convert to an equity or revenue share or some type of convertible program. There are crowdfunding sites for that. There are also large investor shows in LV and Florida and smaller ones around the country and internationally. You now have enough funding to do all that. You would need an S.E.C. attorney and follow some regulations. You will also need a qualified CFO and even a CEO with experience. People who have managed that kind of money. Also, somebody needs to be the "closer", someone who can talk investor language and present the opportunity from a business perspective.

    As a strategy you may want to broaden the investment opportunity beyond just one "hit or miss" project and present yourself as a gaming company with plans for continuing game development. I saw the development team, very impressive. With Suzuki's game development history it could sound like a viable business. With your 6 million "war chest" you could do a lot to create a serious legitimate and viable deal that may be attractive.

    Use some of that money to create a killer business plan (hire somebody)and a killer presentation, hire some people who are from the investment community and who have raised large capital before. They know who to call and how to proceed. You will need to pay them very,very well, but it could be worth it.

    Basically use your war chest to generate more investment.

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    As a little follow up, below are some dates for investment "Money Show" trade shows. New and emerging companies make their presentations to the attendees. 1000s of investors flow through. With hotels and travel and booth costs will be around 10K+ each show but could be very well worth it. I could tell you who to call if interested.

    Also, back to my previous comments. I want to re-emphasize management. I don't mean just developers, I mean business management. They look at that even before the "business". Your management MUST be top notch with successful histories.


    | MoneyShow Orlando, February 8-11, 2018| TradersEXPO New York, February 25-27, 2018 | MoneyShow Las Vegas, May 14-16,2018 | TradersEXPO Chicago, July 22-24th, 2018 | MoneyShow San Francisco, August 23-25, 2018 | MoneyShow Toronto, September 14-15, 2018 | MoneyShow Dallas, October 3-5th, 2018 | TradersEXPO Las Vegas, November 12-14, 2018
    Profitable Advice from Investing and Trading Experts

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    Sorry for the late response! Thank you so much for your advice. I will be sure to take it all on board.

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    Pulling this back up as I was perusing Steam a few minutes ago and Shenmue 1 & 2 happened to be listed on my recommended list for later in 2018. Big Brother or someone taking the advice from this forum?
    Brad Miedema
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    Quote Originally Posted by Donnie18 View Post
    Sorry for the late response! Thank you so much for your advice. I will be sure to take it all on board.
    What is the status of your funding?

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