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TIGSource ForumsDeveloperBusinessHow Do You Find Funding?
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ஒழுக்கின்மை (Paul Eres)
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« Reply #20 on: April 07, 2009, 07:42:08 AM »

Looked up some grants, and that's definitely a long-term plan. Usually the entry deadline is up to 9 months before the money comes in.
9 months to pay off? I can live with that. Got links?

No, you usually don't pay back grants afaik. That's why they're called "grants". I think he meant a 9 month waiting list?
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dc2005
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« Reply #21 on: April 07, 2009, 08:39:55 AM »

That's totally up to the contract. Sometimes the publisher tells _you_ what game to develop and you just do it for a fixed price and that's it. Some times the only thing the publisher is paying for is the right to market the game - but it remains your your baby. You decide how it will look and play like and at the end you still own the IP.
 

That's called an advance payment (when they don't pay you to develop, only for market rights) and usually around alpha stage is the time to try to get them...

If you want to own your IP (indie bussiness model) you must be able to hold on until at least alpha by yourself.
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Peevish
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« Reply #22 on: April 07, 2009, 10:28:51 AM »

If you want to own your IP (indie bussiness model) you must be able to hold on until at least alpha by yourself.

That's not universally true; you can secure a loan without writing a single line of code.

From what I've gathered, there are 4 ways of getting funding, excluding free money like grants and preorders and sugar-daddies. Venture capital, angel investors, small business loans, and person-to-person loans.

Both venture capital and angel investors are a few grades above what most indies need (venture capital deals mostly in 8-figure investments, angel investors usually in the hundred-thousands to low millions), and it's not terribly indie to take money from someone who will be a part of your company and expect a 20x return on their investment. Looks like ZeroSum's mini-essay is geared towards the venture-capital realm, which strikes me as counter-productive. He says that making a business without a business plan is like making a game without a design document; indies forsake design documents all the time.

A small business loan also needs a business plan, but since the interest rates are usually rather low and the only money the bank wants back is what they gave you plus interest; they're not looking for a huge profit, so when the debt is paid off everything else goes into your pocket. But you have to convince them you're not a bust. A friend of mine also suggested taking a class or two at a community college and taking out a student loan; better interest rate and delayed payment, plus it puts all your current student loans on hold.

Then there's P2P, which is more of a guarantee (prosper.com looks like just about everyone gets their money eventually), but if you don't have AA credit you're going to have a shitty interest rate. But you get some time before you have to make the first payment.

For my purposes at least, I'm shooting for a small business loan, and I'll use prosper.com if I can't secure one.
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dc2005
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« Reply #23 on: April 07, 2009, 11:34:21 AM »

If you want to own your IP (indie bussiness model) you must be able to hold on until at least alpha by yourself.
That's not universally true; you can secure a loan without writing a single line of code.

I was talking about publisher funding. If you get funded by a publisher before showing at least an alpha, they will try to get all rights on your game (development funding).
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Michael Todd
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« Reply #24 on: April 08, 2009, 07:22:04 PM »

Its the whole 'Starving artist' thing.
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