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Cloud Imperium secures $17.25m in additional investment

Existing investors pour more finance into Star Citizen developer

Cloud Imperium Games has just received an additional investment of $17.25 million.

The news was announced via the developer's corporate blog, and lists the existing investors that have contributed additional funds to the running of the company.

The investors include Snoot Entertainment, ITG Investment, and the Calder Family Office, all of which were involved in a private investment of $46 million back in 2018.

This later investment was a one-time option to purchase more shares in Cloud Imperium at a discounted price that was negotiated at the time.

It means the developer of Star Citizen has now raised close to $340 million, thanks to this investment, the previous $46 million and its crowdfunding total.

Having started with a $2.1m Kickstarter campaign in 2012, Star Citizen passed $250 million in public donations just before Christmas.

At the time of writing, this has surpassed $275 million.

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Latest comments (7)

Joe.Blobers Surveyor, Satsuma Droid4 months ago
The original investors exercised a “one-time option” to obtain more shares. It was part of the original agreement back in 2018. Those investors are the only people outside of CiG who have a clear vision of both expenses and project development, including progress of SQ42.

Which is more than good sign as they felt good enough about the project to buy further in. It sounds even better while Independent Auditors valued the company at +460M$, excluding the 46M$ invested by Calder, back in 2018.

At that time no one was able to predict 2019 would be the best total pledges amount ever received by CIG (+20% more than 2018). 2020 sounds as good with month to month comparison higher than 2019.

About the 129 complaints, they have been diligently handled by CIG with authorities. Since then TOS have been updated to better reflect company and crowdfunding rules and we have not been informed of new ones.

Those claims have to be put in perspective of the +2.5 million registered accounts, with ten thousands more new accounts at each quarterly patch with very affordable pledge of few 10's $. Since many quarters, most ships can also be achieved in game with Credits, not $.

Knowing all Squadron 42 (solo) assets will be injected in Star Citizen(MMO) after release, not counting quarterly patch with a roadmap giving 4 quarters ahead of new contents, the project is more than healthy with a very strong support.
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Dariusz G. Jagielski Game Developer 4 months ago
@Joe.Blobers: Keep telling yourself that. Sunk cost (in this case, literally) fallacy can be a really strong motivator to keep investing into a sinking ship.

Make no mistake CIG is Harland and Wolff and Scam Citizen is RMS Titanic. While likelihood of someone dying once it encounters the inevitable analogue of an iceberg is next to none, this still will end in tears, bankruptcy and lawsuits.

Roberts truly is no different than Peter Molyneux here (the Milo/22cans Molyneux, not the Populous/Black&White/Fable Molyneux). He promises you unachievable goal and tells you that it may be achieved if you just invest the next million into his scheme. He offers you a pie in the sky that he knows full well cannot be achieved.

Combined pledges already exceeded budgets for games such as No Man's Sky, Elite: Dangerous, GTA V, Red Dead Redemption 2. But sure, keep eating up the success propaganda Roberts is feeding you, keep damage control up and keep living a lie.
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Joe.Blobers Surveyor, Satsuma Droid4 months ago
@Dariusz G. Jagielski:
I keep telling one thing: Facts anyone can double check while naysayers dictionary is limited to few words: "collapse, vaporware, scam, ponzi, sunk cost"

Problem is this handful of few individuals make gigantic effort to not educated themselves to basic game development, finance... and to ignore facts.

- They don't use anymore vaporware (after 5 consecutive years swearing nothing can came out because vaporware): hard to pretend 3.8.2 Alpha is not played when game statistics are shared with all on CIG site...

- Scam and ponzi means nothing in SC context. Words have a meaning and the complementary investment of Calders does prove they want a bigger part of the cake as this one time option allowed them to do. We all know that Names known by everyone in the industry, with Cloud Imperium books details and internal game progress in hands, will search to be associated to a ponzi scheme. But haters hate... this is their own little business who care about non sense...

- Collapse: their preferred sentence "collapse 90 days top for sure!"... back in 2015. Since then yearly pledges amount kept growing, (+20% in 2019), 2020 is month to month even a bit better than 2019 and private investor nobody force to call their option to buy more shares did...

- Sunk cost: According to some genius internet guy a few years back, CIG was kept afloat by only 2000 wales or so... another gross obfuscation. Whales do exist in Any game, buying for thousands $ of skin over years... except that backers was roughly 100K after kickstarter and are now +2.5 millions registered accounts who pledged for +275M$. Reality is that 10.000's new backers join at every patch and mass of backers spent roughly a triple-A pledge equivalent. The mass make those amounts not few whales.

Last but not least, pretending current budget exceed other triple-A's. Perfect example of individual autism refusing to educated themselves.
Let's just demonstrate it in few sentences: pick GTA V.
The "V" means 5 which imply 4 others similar games from the same company have been released over past decades.

First GTA was released in 1997.
In 2018 Rockstar do have +1000 devs, full up-to-date pipelines and 2019 total assets was worth +4 Billions $... I.E. including what they spent over years to make the current company value...
GTA V Art Director Aaron Garbut revealed that GTA V costs roughly $265 million to develop and market.
Uneducated individual at this point will of course totally avoid to take into account the Two decades of growth, length of times used to hire thousands devs (at a cost not for free), create or heavily tweak game engines and pipelines, create thousands of assets they use to create their next sequels... All this is worth hundreds millions $ on top of GTA V $265 millions. Now I let @Dariuz make the math for the others titles to let demonstrate live his "theory"... it is easy, you said it I lie, it will take 5 minutes max to demonstrate with numbers how I am wrong. Easy task right because of course he already did it before announcing 4 well known titles... That is what individual not lying do... except dishonest and or uneducated are the mark of those leaving such comment like @Dariuz did. Confronted to facts and universal business rules, naysayers fade away like morning mist... So convenient. So predictable.

This project is fascinating as it allow to see human behavior in action:

The best with individual using modern tool (crowdfunding model) to get build with proven ambitious developers a project No other Publishers will care to ever deliver because short quarter profit sharing is All they are seeking for, not game community....
and the worst. This tiny but vocal % of a population visible in any group that deny any evidence and prefer to stick to their own fairy tail because they can't accept being proven wrong or refuse to learn the most basic rules.
After all we all know dinosaurs never exist and the planet is flat.

Till today, in April 2020, ten thousands of individuals will swear it is true :)
Every uneducated person is a caricature of himself
.
Karl Wilhelm Friedrich Schlegel

Edited 6 times. Last edit by Joe.Blobers on 4th April 2020 7:20pm

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Show all comments (7)
Dariusz G. Jagielski Game Developer 4 months ago
Ever heard the term development hell? This is where the game is right now, it's where it will going to be for the foreseeable future and it's where it will be when it's ultimately cancelled.

As for technical talk, let me tell you that they're using an off-the-shelf engine (Lumberyard), which already removes most of engine development woes (such as developing a renderer, handling physics and so on). Which, if anything, LOWERS the cost of development which makes the fact that the budget of Scam Citizen already surpassed budgets of many singular AAA games and few smaller AAA titles combined, even more ridiculous.

Also, it's kinda funny how all former CIG employees, even those that left on their own accord, are blaming the mismanagement for the state the game is in. Here, an article on this very site you are reading: https://www.gamesindustry.biz/articles/2019-05-03-star-citizen-development-reportedly-troubled-by-mishandled-money-micromanagement

No wonder that the company hemorrhages money and something that should take a fraction of this budget (really, No Man's Sky, Elite: Dangerous and EVE Online managed to do what this game is eventually set to become with much less budget and at least two of these three games are still actively under development with new stuff being added each year).

Now, why would a company like CIG hemorrhage the money so fast that they have to sell make-believe ships for millions of dollars and still not being able to complete the game? There are only two possible explanations for this, none of them look good for CIG: Either the mismanagement happens because of the lack of business experience on the part of Roberts or someone purposefully defrauds the money and buys expensive housing with it. There's also a possible third explanation and that's this is a combination of the other two.

Please also research the Dunning-Kruger effect, because the only uneducated person here is you, blinded by their devotion to CIG and not able to see the obvious issues the project is facing. This is not something they can actually pull off. If it was, it would be already out by now, releasing at one of the deadlines they've been consistently missing ever since the kickstarter.

Instead they will be taking investor's (and customer's) money until they grow impatient with the state of the project and decide to get the SEC and other parts of the federal government involved. At this point Roberts will be no different than Elizabeth Holmes, except for the fact that Roberts likely didn't endanger any lives along the way.

Also cosider this: JAGIELSKI is PERFECTION. If I say something will happen, then there's a quite good chance that it actually will. See you in October when CryTek kicks CIG's assets in court.
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Joe.Blobers Surveyor, Satsuma Droid4 months ago
@Dariusz G. Jagielski:

Cool. At least now readers can clearly see who you are. A scam flag bearer.

A I already said, words have meaning and scam means nothing in SC context.

No need to make another long statement about your behavior. You bring points in your previous comment and you are totally unable to demonstrate them.

Dishonest and or uneducated are the mark of those leaving such comment like you did about costs. Confronted to facts and universal business rules, naysayers fade away like morning mist... No answer was to be expected and without surprise we got none. So predictable.

But who care... just add more obfuscation and lies.
Now you become a specialist of Lumberyard LOL... and a meme about CR's house... Don't forget the mafia laundering throwing cash in SC and the resort on Pacific island bought with backers pledges.... otherwise it does not sound enough dramatic :)

... But best of the best, the guy is giving prophecy about Crytek case, crushing CIG (again) in October 2020...... while the case have been settle down on march 23rd 2020 :
In accordance with this Court’s Order (ECF No. 124) and Federal Rule of Civil Procedure 41(a)(1)(A)(ii),Plaintiff CRYTEK GMBH and Defendants CLOUD IMPERIUM GAMES CORP. and ROBERTS SPACE INDUSTRIES CORP., by and through their counsel of record, jointly stipulate as follows: The dismissal with prejudice of this Action.
We have already seen hater over years but you are clearly not geared to even scare a 2 years old child. Thanks for trying anyway, it was entertaining.

As I said, this project gather the Best and the Worst of human behavior.
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Dariusz G. Jagielski Game Developer 4 months ago
Yes, I am a specialist i Lumberyard, because I've been usig it to make an FPS game ever since Amazon has released it. Still it's in development, though I estimate there's about 50% done of said game. The Lumberyard, even in its infant version, had everything you may need to make a good game with it and the only thing you had to focus on is the gameplay coding, with many systems such as environmental destruction and vehicle handling already in place and ready to use. And now it's even better. I wonder what kind of game development experience you have - probably none. Again, please research Dunning-Kruger effect because you are suffering from it.

The lawsuit you're quoting is just one CryTek launched against CIG. In fact, there are multiple, one of which is on hold until October 2020.

About the mafia laundering... do you have any insider information about it? Because this is the first time I've heard of it. It wasn't in the Forbes reporting, it wasn't in any other news sources from reputable news companies.

Also again, how games like No Man's Sky, EVE Online and Elite Dangerous, at least two of which are still under active development releasing new content every year and which are about the thing Roberts promised in the original kickstarter, could do this on the much, MUCH smaller budget that Clown Imperium already gobbled up?

Not to mention the amount of scope and feature creep in Scam Citizen all but guarantee that we'll sooner see Half-Life 3 than SC.

Go buy some more make-believe starships. I'm going to play a game that actually exist. You wouldn't last a nanosecond in nullsec.

Edited 2 times. Last edit by Dariusz G. Jagielski on 4th April 2020 10:08pm

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Joe.Blobers Surveyor, Satsuma Droid4 months ago
Quote:
The lawsuit you're quoting is just one CryTek launched against CIG. In fact, there are multiple, one of which is on hold until October 2020
...
This is a lie, one among many you already throw in this comment section. There is no more Crytek lawsuit. As usual it is easy to decipher your hater attitude: do provide reference of the pending case like I did for the already settled down case. You won't because... there is none. Easy to prove the opposite Dariusz right? you already made several comments of few paragraphs? you can make another one with a line of case references... We are all waiting.

Quote:
I am a specialist i Lumberyard
...
You are not. May be you want or pretend to be but anyone knowing a bit about Squadron 42 + Star Citizen project know Lumberyard, which is a fork of Crytek 7 years old engine, have been heavily modified by CIG, so much that it was called "Space engine". Why? because Lumberyard is absolutely Not able to handle 3.8.2 Star citizen contents with 64 bits precision (just to pick one reason it was modified).... which prove you don't know what you are taking about the game and the game engine in general. Pathetic really and so visible.

Quote:
how games like No Man's Sky, EVE Online and Elite Dangerous... and which are about the thing Roberts promised in the original kickstarter
...
I talked about uneducated individual about game development and finance and their fairy tail but you get an award in this category.
None of those three games have the scope of SQ42+SC. Better, the three combined don't have it. How I know it? Show us which game have all current (not even final released) SC Alpha contents. Take your time. There is none. A hint: having an asset called ship flying in a volume called space is not relevant :)

At this point it is clear you have no clue about what you are talking about or are just a troll.
Sidee note: My comments are never to prove I am right but to allow Readers to make their own opinion between article information and others comments.

You clearly demonstrated who you are. So keep coming with more lies Dariusz it does not matter, you have been caught by your own attitude. Job done :)

3.9 is coming in a couple weeks and new backers are going to join by ten thousands like for other patch. So long :)

Edited 1 times. Last edit by Joe.Blobers on 5th April 2020 6:17pm

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