The results of a workshop at Madeira Games Summit showed how investors and developers work from a totally different mindset. A roundtable workshop at this year's Madeira Games Summit, where executives and studio leaders spoke anonymously, shed light on why funding tends to favor established companies and risk-averse projects over deserving, innovative video games.
A roundtable workshop at this year's Madeira Games Summit, where executives and studio leaders spoke anonymously, shed light on why funding tends to favor established companies and risk-averse projects over deserving, innovative video games. Led by Vivrato founder Adam Boyes, the workshop involved stages such as writing game pitches, designing investment funds, and creating a hypothetical portfolio as a group. Surprisingly, when given $1 million to invest, almost none chose to back video games.
Participants initially enthusiastic about original game projects ended up focusing on tools, infrastructure, and platform technology in their fund designs. Less than half of the total capital allocated went to traditional game content, leading to the realization that developers and investors operate with different mindsets.
Insights from the workshop highlighted a language gap between developers and investors, with participants struggling to balance creative vision with financial considerations. Recommendations included leading pitches with return expectations, understanding the type of capital needed, and engaging with fund managers to refine pitches effectively.
