6 Critical Tips for Game Developers to Attract Investor Interest
In today’s digital age, the gaming industry is one of the fastest-growing sectors. As the number and variety of games increase rapidly, major companies continue to release new titles while new studios enter the market with ambitious projects. Since the 1990s, the video game market has drawn huge attention, and with the advancement of mobile devices, the mobile gaming segment has also continued to rise.
In today’s digital age, the gaming industry is one of the fastest-growing sectors. As the number and variety of games increase rapidly, major companies continue to release new titles while new studios enter the market with ambitious projects. Since the 1990s, the video game market has drawn huge attention, and with the advancement of mobile devices, the mobile gaming segment has also continued to rise.
The in-game advertising industry, which closed at $7 billion in 2022, is drawing growing interest from both investors and developers. Research shows that the volume of in-game advertising is expected to reach $67 billion by 2030. With the integration of next-generation technologies like virtual reality, blockchain, and artificial intelligence, competition is accelerating. Investors, including those in Turkey, are actively searching for the next wave of unicorns worldwide.
Game Genres from the Investor’s Perspective
Before diving into what developers and studios should focus on to attract investment, it’s useful to examine the different game genres from a technical and investor perspective:
Hyper Casual: Games that can produce playable prototypes in under two weeks and be globally launched within two months. Their revenue model relies entirely on advertising, with relatively low costs.
Hybrid Casual: Positioned between hyper casual and casual. Development takes 4–6 months, with content that achieves strong retention rates by day 30. Revenue models combine advertising with in-app purchases.
Casual: Requires 6–9 months for thorough testing and about 18 months with strong teams for a global launch. Highly competitive with higher user acquisition costs but long-term revenue potential.
Midcore: The most expensive to develop, requiring 18–24 months with large teams. Generates the highest revenue per user, but balancing depth and artistry is critical—especially for the Asian market.
Key Points to Attract Investors
Be Confident in Your Development Process and Start with Genres You Know
Begin with the genres you have experience in. For instance, moving directly from hyper casual to midcore could be risky in the eyes of investors. Demonstrating expertise and familiarity builds trust.Plan Carefully and Set Short-Term Goals
For games not yet fully developed, create short, manageable plans—preferably in 6–12 month intervals. Long-term, vague goals are less attractive to early-stage investors.Build the Right, Strong, and Experienced Team
Investors focus heavily on the team. Experienced members who have worked on major projects inspire confidence. Strengthen your team not just technically but also in creativity and marketing.Understand Investors’ Strategies
Research what stages, platforms, and genres potential investors are most interested in. Tailor your pitch and project to align with their strategies.Set Realistic Multiples and Timelines
Not every project has to be a unicorn. Reasonable valuations and achievable targets are more appealing than inflated expectations.Define the Revenue Model Clearly
Ensure your revenue model is realistic and aligned with global benchmarks—whether it’s advertising, in-app purchases, or a mix of both. Investors seek sustainable and scalable business models.
Additional Considerations for Developers
Future of Gaming and Strategy: Stay updated on emerging technologies like VR, AR, blockchain, and AI to strengthen your project’s appeal.
Global Market Competition: Target international markets with localization, cultural adaptation, and global marketing strategies.
User Experience and Retention: Focus on making your games user-friendly, fun, and addictive. Loyalty translates directly into investor confidence.
Financial Management and Transparency: Present clear, transparent budgets, revenue forecasts, and regular reports.
Marketing and Promotion: Develop strong marketing strategies with social media, influencers, and PR campaigns to increase visibility.
Partnerships and Collaborations: Collaborate with other studios, tech firms, or agencies to boost project credibility and scale.
Investor Relations: Maintain consistent and open communication through updates, reports, and direct engagement.
Conclusion
For game developers to capture investor interest, these criteria are essential. This ensures that both developers and investors converge on successful projects, contributing to the industry’s growth. Identifying and investing in the right projects will create massive opportunities in the global gaming market. By implementing these strategies, developers can strengthen their projects and secure the investor support they need to succeed.