Anna Emanuelsson
Business Coach - Financing & Investments
0705-14 78 56
Publisher financing is a type of funding used to cover the costs of developing, publishing, and marketing a product. It's a way to access capital to finance the product without having to invest their own funds or take on venture capital, which involves relinquishing ownership in the early stages.
Imagine you have an amazing game idea, but it requires significant resources to develop and launch into the market. This is where publisher financing comes into play as a potential solution.
In a publisher financing model, the publisher takes on the responsibility of covering the costs of product development. This may include covering expenses such as salaries for your team, as well as other types of costs, such as licenses, facility expenses, hardware, and anything else required to develop the product. The publisher may also contribute to marketing and advertising activities to boost sales.
The advantage of publisher financing in the gaming industry is that it reduces the financial risk for you as a developer. You gain access to resources and expertise from the publisher, increasing the chances of your game standing out in the competitive gaming market.
In exchange for the financing, the publisher receives a share of the revenues from sales. Typically, these terms are outlined in a contract, functioning as a partnership where both parties benefit when the game succeeds. It's advisable to discuss with others who have experience with these types of financing models and have recently navigated the journey with publisher financing.
Always seek legal assistance. It's crucial that the agreement clearly defines the financial terms, including revenue distribution and any repayment requirements if sales fall short of expectations. A lawyer experienced in publisher financing can help you understand the potential benefits and risks associated with the agreement.
Feel free to reach out to Anna.
Business Coach - Financing & Investments
0705-14 78 56