I am trying to build a list of possible methods to generate capital for a start-up project. I am aware of loans, sponsors and things like angel investors, but I would love for any feedback to assume I don't know anything. In a way I do not. Ultimately I would like to create a list of the options, pros and cons for each and resources that would help me find and contact them. Any and all feedback would be greatly appreciated.

If you or your team members have never made games that have turned a nice profit your only realistic options are the "3 Fs": friends, family, fools.

-me

I'm not sure if it's practical for you - but the developers of the game Mount & Blade were selling the game during the entire time it was under development. As the game got closer to release, they gradually raised the price until the final price at retail launch. If you bought it early, you got all the updates (including the final game) for free. As far as I know, the bulk of the game was self-financed.

Quote: Original post by snak
I'm not sure if it's practical for you - but the developers of the game Mount & Blade were selling the game during the entire time it was under development.

That's not how I read it.

Their web site says that didn't happen until an Alpha version was released in 2005, after a few years of development as a "garage project".


They got funding only *AFTER* they had a complete, but still rough, game. Then they had the 3F's funding them as they tried to sell the game online. Then after they had proven their ability to produce games, they managed to find and afford a publisher.

- You can always use a credit card to use the credit on the card to fund your game (assuming you can get one)

- Robert Rodriguez (the director of Sin City) paid for his first movie by subjecting himself to medical experiments

Other than that, the 3 F's!

jellybean - WOW that is insane. that is true dedication isnt it? :P

> I am trying to build a list of possible methods
> to generate capital for a start-up project.

There are many ways for which you can get an immediate cash flow. But the price is that you need to reimburse that financial instrument one way or another. It's a tradeoff in risk, time, and cash flow. REITs are an example. Buying an appartment building with a bank load and using the rents (minus loan & maintenance expenses) as cash flow is another.

The thing is, either you have something of value to sell, or your team needs to decide on an alternate industry from which to generate cash flow. There is simply no free money lying around. It there was, it would be long gone anyway.

-cb

Quote: Original post by Atrix256
jellybean - WOW that is insane. that is true dedication isnt it? :P

Do you mean using a credit card? That is pretty common, I believe. It's just that it can backfire pretty easily.

As for the medical experiment - hey, you've got a dream, you've got to follow it. I would do it if there was a medical experiment that paid that much (and I needed the money that badly [which is kind of funny because I DO need the money that bad...]).

:)

Quote: Original post by frob
Their web site says that didn't happen until an Alpha version was released in 2005, after a few years of development as a "garage project".


They got funding only *AFTER* they had a complete, but still rough, game. Then they had the 3F's funding them as they tried to sell the game online. Then after they had proven their ability to produce games, they managed to find and afford a publisher.

I may be remembering things wrong - but when I first paid for the game (probably in '06 or '07) they definitely did not have a publisher lined up.

Quote: Original post by snak

Quote: Original post by frob
Their web site says that didn't happen until an Alpha version was released in 2005, after a few years of development as a "garage project".


They got funding only *AFTER* they had a complete, but still rough, game. Then they had the 3F's funding them as they tried to sell the game online. Then after they had proven their ability to produce games, they managed to find and afford a publisher.

I may be remembering things wrong - but when I first paid for the game (probably in '06 or '07) they definitely did not have a publisher lined up.

That is exactly what I said. The mainstream publisher came after they had the initial online releases and proven that the game was viable.