Crowdfunding Site for Game Industry Launches
BY Kathleen Kim
A Europe-based platform allows developers to offer equity stakes, providing a hint of things to come in the U.S.
Start-up game developers have a new place to look for funding.
Gambitious, an Amsterdam-based crowdfunding platform exclusive to the gaming industry, opened for business Tuesday, allowing users in Europe and the U.S. to launch (and donate to) projects with funding goals of up to 2.5 million euros.
What makes Gambitious, founded by a team of industry professionals, stand out among the growing number of crowdfunding sites: Some developers can choose to reach their goal partly through equity investments. This allows project backers to receive a stake for their financial investment.
Backers can only invest in games themselves, and not the developers behind the products; game investors can receive dividends if the games sell well, Mashable reports. The site also says Gambitious requires game creators to submit a working business plan along with an application for a project.
As of now, only European citizens can legally offer equity to investors. The website offers a hint of things to come, however: Starting next year, provisions of the JOBS Act will allow U.S. citizens to offer equity via crowdfunding portals registered with the SEC.
“It’s a great time to be both a game creationist and an investor, as financial opportunities abound with the myriad new platforms,” Gambitious founding partner Andy Payne told VentureBeat.
Gambitious says it does not take an equity stake in its funding projects. The site does take a 5% cut of funds raised, if a project is fully funded; it also charges a 2.5% fee to investors adding money to their Gambitious account.
Game development seems to be a crowdfunding sweet spot: On popular crowdfunding platform Kickstarter, seven of the first 10 Kickstarter projects to achieve a $1 million goal were game-related campaigns.
Currently, seven projects have launched on Gambitious.