

Can Film-Inspired Project Financing Work for Games? - spacestronaut
http://www.gamasutra.com/view/feature/177981/Can_FilmInspired_Project_Financing_Work_for_Games.php

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chii
Thats a very interesting article.

What about a crowd sourced financing option, but different to kickstarter?

Kickstarter is not a financing option, its a "pre-order" system in which the
crowd pays upfront for their product, and is not owed any profits or equity
from the business.

i propose a crowd funding financing option, where you propose your product,
and propose the amount of equity you are willing to give out. Say, you give
out 50% equity. Each crowd funder can pay their desired amount, and will get a
% of the equity that is equal to their contribution divided by the total
(which is unknown till the end of the funding round). For example, if 10
people all contributed $10 each, then each will get $10/$100=10% of the 50%
equity, or 5% of the total equity.

I expect that a game could be funded by thousands of people, each paying a few
dollars each. The profit structure could be that each % of the equity is worth
that much of the profits from the sale of the game.

The game developer(s) thus have full creative control, and the risk of failure
is spread to many thousands.

