3 mins read
Jul 22, 2023
Fireside Chat at PGC London 2023: State and evolution of raising capital for game developers in 2023
The Fireside Chat at PGC London 2023 was a discussion between Olya Caliujnaia, from Sanlo, and Kristian Segerstrale, from Super Evil Megacorp, about the state and evolution of raising capital for game developers in 2023.
The gaming industry has demonstrated its ability to adapt and embrace new technologies to enhance productivity and creativity multiple times. Now it’s more important than ever to focus on differentiation and explore new ways to entertain players, moving beyond traditional genres and game mechanics.
"Now is a really good time to think about how you are going to be different. You don’t always need venture folks to be successful. Sometimes it is about finding the right partner who will catapult you to the next level" - Kristian Segerstrale.
We talked about the impact of revenue decline and investment trends in the gaming industry. While there has been a downturn in the industry, people will continue to play games, and growth will eventually rebound. The gaming industry has experienced cycles of growth and downturns in the past, and it is essential to adapt and be more creative during these times. Now it is more important than ever to focus on product quality, innovation, and accessing alternative sources of financing, such as strategic partnerships and innovative debt funding.
"There’s been an unusually fast growth in the industry over the last several years and we got used as an industry to the double digits. Investors and developers usually follow the trends, understandably so, but now we are at a stage where the narrative is less clear. So there is a massive apprehension from investors, especially when discussing investment in early stages. That said, downtimes cause innovation and create opportunities of creativity and we need this." - Kristian Segerstrale.
In the early stages, the team's capabilities and execution are crucial for investors. As the product matures, its performance and traction become more important. The team's resilience and ability to raise capital in the future play a vital role in investment decisions. While acknowledging the value of talented teams, both Olya and Kristian emphasized that democratized access to investment, as facilitated by platforms like Sanlo, provides a fair chance for companies without a high-profile team to secure financing.
About the Speakers:
Olya Caliujnaia is a co-founder of Sanlo, who was in game development and transitioned into the fintech industry. Two years ago, recognizing the need for financial products tailored specifically for game and app developers, she co-founded Sanlo.
Kristian Segerstrale, CEO of Super Evil Megacorp, is a veteran in the gaming industry, having built computer game companies for over two decades. His current company specializes in AAA cross-platform games, with mobile-first as a focus.