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Game payments firm Xolla is launching a game investment platform for indie games, and will invest up to $ 40 million with other recognized investors.
With over 100 game-focused adventure funds worldwide, there is a lot of money left. But those funds are mostly aimed at the big fish in the lake – not the indie game producers who really need the money and to control their own fortunes, said Xsolla president Chris Hewish in an interview with Gamesbet.
While investors mostly seek control over the game studio or its creations during negotiations, Axola will seek to link India’s interests to its own interests by financing individual projects. Hisch said the Axola Game Investment Platform will participate in the proceeds of the projects, but will not own intellectual property or the company.
Xsolla operates more than 700 different payment systems worldwide. And it works with more than 1,500 game companies and 2,000 games. While other payment companies focus on large businesses, Xsolla has thrived by focusing primarily on games. This has helped developers understand the need to run their businesses and provide payment and backend services that can make a difference. To date, the company has helped its game partners generate more than 3 3 billion in revenue from 3,400 games.
Exola Game Investment Platform
The platform aims to facilitate funding for independent developers and give them access to capital; Representation of recognized investors for selected sports projects by experts from Xsolla; Organize the interests of independent game developers and recognized investors through a revenue sharing structure; And allows investors to diversify capital and risk in a variety of projects.
This is happening amid a boom in gaming, as the epidemic inspires many people to socialize with friends during lockdowns and play games to bring back a little fun into their lives. The gaming industry earned 4 4 174.9 billion in 2020, with small independent developers making it a developing and important part of the industry, Newsu said.
Yet there is part of the capital available to support this sector of the industry, which makes it difficult for independent developers to find the right investor to support their efforts.
Instead of spending time exploring investment opportunities in the sports market, investors can find them and their projects on the Exola Game Investment Platform. Xsolla is considering investing in the next level of video. The Axola Game Investment Platform will connect accredited investors directly to projects already in development with game developers and await additional funding.
To continue building a high-quality investment community, Xsolla is lyboarding selected investors and game developers each week.
The need is because most indie devas don’t know where to get the money, Hewish said.
“This is presenting a real investment opportunity for Indy Dev,” Hewish said. “We have been working on this for some time. We’ve talked to other investment platforms to understand what we’ve learned from them. “
Hewish has repeatedly said that even if an indie god attracts the attention of an investor, the investor can try to gain control over indie’s intellectual property rights. It doesn’t serve Indy’s interests, Hewish said. In this case, investors do not get a stake in the indie game company. .Lata, they get a share of the income. That’s why it’s considered more like funding for project financing rather than investing in ventures.
Every split of revenue sharing between investors and developers will be negotiated.
On the flip side, most investors don’t even know where or how to find indie game developers. They need to find a lot to spread the risk. Axola tries to match these people together through its separate practice through the Dub Funding Club.
How it works
If an investor wants to join a project, he can contribute a certain amount and Exola can contribute his own amount. Hughes said that if an investor puts એક્સ 10 million into a project, Axola could match the 4 million investment. On average, a game could cost million 1 million, and at least $ 5,000.
Six games are already on the platform, and Hewisch said the company is in talks with potential investors. He said Axola is focusing on accredited investors, venture funds, family offices and other investors.
Exola is managing investments with its funding team. It has other related activities such as its joystick fund, which is run by its founder as a separate traditional venture capital fund, as well as the above-mentioned funding club, which is a matchmaking service. Alexander Agapitov started the company in 2005 to provide resources and tools to small developers who needed access to similar services that large game publishers could provide.
“Spreading risk is an excellent theme on the board here,” Havisch said.
Over time, Hewish said he hopes that over the years, more than 1,000 games will be funded to the tune of 1 million each. It will have a big impact.
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