Part of the difficulty in establishing a Kickstarter model is the various legal hurdles in the European member nations involved in microfunding models. Their site does have the notorious statement which accompanies almost all European investment prospects, 'investing not yet possible for US citizens' – so it looks like they haven't worked out all the legal nuances yet – but I'd be extremely curious as to how they managed to solve those issues. A breakthrough on that front would open up the door for more such platforms enabling startups in Europe to profit from the Kickstarter-style model of finding demand before heading into production.
Reshared post from +EuroTech
Gambitious, The Only Professional Crowdfunding Platform For The Game Industry
by , ; France
The Amsterdam-based company Gambitious is launching a crowdfunding platform this month to allow game developers to raise money from fans to create ambitious indie games. This is the first professional crowd funding platform exclusively dedicated to the games industry.
“As far as my partners and I are concerned, this represents the biggest opportunity independent developers have ever had to truly control their own creative and financial destiny, but it has to be handled with care if it is to last. I am truly honored to be part of the team that will work to legitimize, protect, and maximize this opportunity for professional game developers, their fans, and a new army of individual investors out there,” says Mike Wilson, a partner in Gambitious.
Developers and publishers can secure funds for development of new or existing game projects. It will target proven development studios and up-and-coming independent developers. The service will include plans to getting a game to market and reaching its intended audiences.
Traditional publishers have seen their role dramatically change, and have grown hesitant if not reluctant when it comes to investing in new game franchises, and when they do, they want to take control of intellectual property. Traditional funding models leave developers empty handed, hence the need for a completely new and innovative equity structure to back game development projects.
Gambitious provides an online platform to connect independent game developers seeking funding with a passionate community of investors, gamers, and industry veterans looking to invest in new and existing game projects. Game studios from around the world can register their projects on Gambitious and indicate how much capital is required to fund their project and the equity they’re offering potential investors in return. Gambitious investors search projects for compelling game projects and acquire shares at as little as €20 each until the developer has secured their funding target for the project.
Game developers can raise funds via a hybrid of both fan donations and an equity offering, and the equity offering can be adjusted if the fan donations are better than expected. That way, teams don’t have to give up more equity than necessary. Thus, Gambitious hopes to ensure a high success rate for both developers wanting to reach a worldwide audience, fans who want their voices heard in the medium they love, and investors who want to participate in a more controlled and professional crowd funding environment.
It aims to help independent game developers and publishers reach the widest audience with their proposals and to attract the funding they need to complete the project and to bring it to market. The platform is structured for funding in the U.S. and the European Union.
The individual investments are converted into a single legal entity, a co-op, designed for the purposes of making the project investment. Each investor owns a stake in this new legal entity in the proportion of their investment to the overall investment amount and if the project is successful, will be paid dividends accordingly.
Additionally, investors will be able to trade their shares in one Gambitious project for shares in others once the funding target has been reached.
Gambitious has taken the utmost care designing its processes and structures to offer maximum security and confidentiality to its members. The tax and legal structure has been prepared and reviewed by professionals from highly regarded companies. This legal framework serves the interests of all stakeholders and minimizes any chances of abuse.
In addtion, Gambitious uses the latest technology to secure and host its websites. By continuous backups of the entire system, Gambitious is always capable of providing maximum protection against potential abuse or hacking of the system.
Gambitious’ founders include Mike Wilson and Harry Miller, co-founders of the Gathering of Developers, a 1990s firm that tried to stir up the industry by treating game developers as rock stars. Miller explains, “I tried doing something similar about 3 years ago, but the lawyers shut me down due to the SEC regulations against offering equity to large numbers of individuals, some of whom would obviously be unqualified investors. I was excited to learn of Gambitious’ model in Europe, and more recently, the passing of the JOBS act in the U.S., which will allow Americans to participate in this funding platform in 2013. Finally investors of any size, can invest in something that they are either passionate or curious about, in bite size pieces. The learning curve on investing in this space just became dramatically less steep. The equity based crowdfunding model has the potential to reinvent how and which games come to market, more directly putting the decision into the hands of the people who want to play those games. I feel that the games/genres that will benefit the most from this model are those that are of a smaller niche as the fans of these games can support them long before any decision is made to squash them due to perceived lack of interest.”
It is possible to apply for listing on Gambitious today and be ready to attract funding after their full launch in the course of August!
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