New game crowdfunding site

MATT MAGUIRE
Last updated 13:20 26/09/2012

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A new videogame-only crowdfunding platform is hoping to distinguish itself by offering investment in titles as well as straight donations.

Gambitious, based in Amsterdam, describes its model as "crowdfunding going pro".

When a game studio registers a project at Gambitious, it indicates how much capital is required to fund a project all the way through to commercial release, and the amount of equity it will offer in return. It must also submit a detailed business and marketing plan.

The funding window for projects that allow investment is a year, or 90 days for those only soliciting donations.

Potential investors may pledge as little as €20 (NZ$31.42) per share until the studio hits its funding target, and the developer keeps its intellectual property.

The equity offering can be adjusted if donations are better than expected. That way, developers don't have to give up more equity than necessary.

Once a funding target has been hit, investors can trade their shares in that project for a stake in another.

Should the game turn a profit, investors receive dividends based upon their initial investment.

As a consequence of the Jobs Act, those in the US may only donate rather than invest until the Securities & Exchange Commission specifies the ways potential investors are allowed to hear about stock offerings.

"We have put in place controls for vetting projects," said Gambitious co-founder Mike Wilson.

"It is time to move from the wild, wild, west of crowdfunding to a more professional model."

"Crowdfunding is causing a great seismic shift in how projects get funded; however, there are risks of crash-and-burn due to unfulfilled projects and unfinished games," said Gambitious CEO Paul Hanraets.

"Gambitious is a transformational way of funding the video game market - legitimizing, protecting, and maximizing the opportunity for all that want a stake in the game."

There are currently seven projects on the site.

-Gameplanet

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