Securing Mobile Funding: A Comprehensive Guide

Every company prioritizes its funding, whether for developing a new game, expanding a studio, or transforming a gaming passion into a successful business. None of these endeavors are possible without resources. Even the most promising ideas require a compelling pitch, a high-quality presentation, and a relevant offer to secure funding from investors. This guide provides detailed insights into preparing a good investor pitch, based on a conference lecture at WN Dev Day Canada 2022. Before seeking funding, it's essential to understand the purpose of the funding and how it will be utilized. This clarity enables you to determine the deal format and find the right partner. There are several funding options, including product funding without investing in the company, development funding that can be converted into company shares, development funding combined with investment in the company, and company investment. Each option has its benefits and considerations. For instance, product funding without investing in the company involves allocating money to a specific project with tight KPIs and milestones, and a refund from the developer's share of the project's income. This option is less common but can be considered in conjunction with subsequent publishing of the project. Alternatively, developers can consider angel investors or wealthy friends and relatives, but this option often results in the investor owning the IP. Development funding that can be converted into company shares offers more flexibility, as the company is not obligated to repay the debt from the project's income. This option is suitable when both parties are interested in a promising project but are still determining their compatibility as business partners. Development funding combined with investment in the company involves two separate deals, which can expedite the process but requires more paperwork. Company investment, on the other hand, involves purchasing a share of the developer's company without additional development or publishing agreements. This option is often suitable for companies seeking funds to scale, with a sustainable project and team in place. Before seeking investment, ensure that all accounting and legal issues are resolved. Establish clear goals, and consider questions such as handling the full cycle from development to publishing, focusing on development only, target genres, team requirements, and expected support from the partner. Providing honest answers will help build a relevant shortlist of potential investors and develop a good pitch. To apply for investment, research companies offering funding, prepare necessary materials, and create a good application. Research is a crucial step, as it helps filter potential partners based on their expertise, services, and previous investments. Prepare a presentation about your company, including foundation date, registration country, field of expertise, technical stack, released projects, and team information. Also, provide project information, such as genre, art style, setting, USP, target audience, key gameplay references, concept or GDD, competitors, market analysis, roadmap, target KPI, and financial plan. Use these materials in your emails to investors, and consider using a template to make things easier. During the call stage, clearly communicate your needs to potential partners, and be prepared to discuss goals, expectations, and requirements. Investors evaluate studios based on their own criteria, including founders' background, team experience, and market prospects. Be prepared to provide additional materials, such as product and marketing metrics, and to discuss goals and expectations. Remember that not all products may be suitable for an investor, so communicate your needs and goals early on to avoid wasting time. Start looking for partners in advance, as market research and contract preparation can take several weeks to months. A correct and comprehensive approach will help you come across as confident professionals who know their needs, wants, and ways to fulfill them.