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the money is investment, so the idea is it would be soent on new developers, offices, hardware etc to create the game in question. The investors don't just send
by celticninja 6y ago
the money is investment, so the idea is it would be soent on new developers, offices, hardware etc to create the game in question. The investors don't just send you $30m and come back in a 12/24 months, they are buying a bit of the company, so they will be there for meetings and updates and demand milestones and progress reports. So you could fail to achieve making a game, perhaps the money runs out and the investors dont want to put in any more. So the company fails/closes but you dont have to repay the investors. If the company is successful and the game launches and there are profuts then the investors get some of those profits but ultimately the investors will want to sell their stake in their now profitable company, ideally getting 50x or 100x their investment.
- atum47 6y agoand how do you convince the investors that your idea is worth of the money? prepare a demo, a presentation, a prototype...
- thendrill 6y agoDepends. If you have 0 network. Then you need to go to conventions and startup meetups and build a network Some EU governments have startup grants that can help you on the way. But you can't apply as a one man show. Minimum 3 The presentation and demo is usually just an after formality. People invest in people, and buy ideas
- ramtatatam 6y agoSomebody once told me that in order to get an investment term sheet had to be signed which in essence was a loan, like in the bank.. I wonder how often is this the case.
- forgotmysn 6y agoyes. in order to receive investment, you will have to sign a form that defines the terms of that investment.
- atum47 6y agoAll the knowledge I have of this type of things comes from Silicon Valley, the show