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Indie Fund updates investment model

Thu 09 Feb 2012 9:33am GMT / 4:33am EST / 1:33am PST
Development

Wants to take bigger risks with a bigger range of projects

The Indie Fund, which helps to finance independent developers, has changed the terms of its investments.

"The new terms allow us to grow Indie Fund with games that do 'just ok' financially without requiring a hit to make up for projects that generate a loss," it explained.

"We can then fund more long shots, knowing that we'd be ok if they fail as long as we have another game do 'just ok' in terms of sales."

Under the old terms a $100K project would pay back $100K to Indie Fund, plus 1 per cent for every $10K the developer was given, for two years. Now for that same $100K project Indie Fund will receive its $100K back, plus 25 per cent of revenue until Indie Fund has doubled its investment, or until two years after the game's release.

"Indie Fund would get the first $100k the game earns, and then collect 25% of the revenue until the game has earned a total of $500k," it said.

"At that point Indie Fund will have been repaid the $100k investment and made another $100k on top of that, while the developer would have earned $300k and keep everything the game earns from there on out."

Indie Fund put the need for changes down to the increasing cost of developing indie PC titles, combined with the range of mobile and browser titles now in production.

"First, we want to invest in a wider range of projects, both smaller and larger. Second, we want to take bigger risks with projects that push the medium in new directions, and this often comes at the expense of commercial potential."

Indie Fund is currently supporting games like Dear Esther, iOS title Faraway, Monaco and Q.U.B.E. which repaid its Indie Fund investment after just four days.

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