New equity based crowdfunding platform to launch

Gambitious to allow contributions for €20 to €2,500,000 in return for equity stake

New crowdfunding start up Gambitious aims to bring the equity based funding model to games when it launches in March.

"When developers register their project at Gambitious, they are in full control," said MD Paul Hanraets. "

"They indicate how much capital is required to fund their project and determine how much equity they offer in return. Then it's up to them to market their title and convince the investors who visit the platform. Again, anyone can invest; from as little as €20 for each investment unit, to as much as €2,500,000".

Based in the Symbid crowdfunding model, and Hanraets revealed the company has already signed a whitelabel partner and is working with a number of unnamed developers.

"For indie developers it was deemed almost impossible to raise capital for new or existing game projects," continued Hanraets.

"The traditional publishers have seen their role dramatically change, and have grown hesitant if not reluctant in investing in new game franchises. Unfortunately there are few alternatives to this traditional funding model. There is a strong need for new and innovative structures to back indie game projects financially; now more than ever."

Crowdfunding is a hot topic among developers and gamers alike at the moment, hitting the spotlight after Double Fine Productions set up a Kickstarter fund for a new point and click adventure, and made $1 million in a single day. The fund is currently at $1,743,003 with 50,322 backers and 28 days to go.

Latest comments (8)

Daniel Cleaton QA Manager, YoYo Games Ltd6 years ago
While I appreciate the need for equity-based crowdfunding, especially with higher-budget projects, I kinda fear that this will eventually become a requirement for even low-budget future projects if a few titles succeed on this type of platform. Why wouldn't even the smallest backer want a split?

It should be noted that the Double Fine example quoted is not under an equity scheme - I wonder would they have offered the project under this alternative?
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Massimo Guarini Founding Director and CEO, Ovosonico6 years ago
Although there surely must be a minimum entry level funding fee that entitles to equity share.
I can't really see 10,000 "shareholders" who contributed with 20 each :)

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Marco Bonaria Senoir 3D Artist, Aris6 years ago
I'm not sure about you guys but I'd rather invest in a game idea and have the potential of some good return than the game and a signed shirt.

Although I do wonder whether if you invest the minimum 20, do you get the final game for free? can the developer even offer it?
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Show all comments (8)
Daniel Cleaton QA Manager, YoYo Games Ltd6 years ago
They take it out of your cut ;)
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Kristian Fosh Director, DreamFever6 years ago
Tough one but for small studios and indies to get off the ground it's probably better than a bank loan. Not easy but has the potential for success I would hope!
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Nicholas Lovell Founder, Gamesbrief6 years ago
I'll be fascinated to see how they are working with the FSA on this. It looks like a regulated investment to me, so I'm keen to see how they have addressed the challenges of being FSA registered and managing client money.
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Tim Carter Designer - Writer - Producer 6 years ago
Nicholas, they might be based in the US. If so, they are free and clear to do this - up to $3 million per year, per company/project.

Edited 1 times. Last edit by Tim Carter on 14th February 2012 7:12pm

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James Boulton Owner, Retro HQ Ltd6 years ago
Gambitious is based in the Netherlands by the looks of it (certainly the domain owner is anyway).

What I'm curious about with this crowd funding is whether things like kickstarter would be legal in the UK as there is no equity stake involved. It's basically a charitable donation in return for a reward.

Does this still fall foul of the FSA?
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