VC fund VGames launches new $10m Indie Fund
Venture capital firm VGames has announced the launch of a new $10 million Indie Fund designed to support independent game developers creating premium titles for PC and console platforms.
Unlike traditional venture capital investments, VGames will provide project financing in exchange for a revenue share arrangement rather than taking equity stakes in studios. This model is specifically targeted at smaller studios developing commercially ambitious games that eschew free-to-play monetization models.
According to investor Lior Elovitch, the fund’s focus on PC and console stems from differing market conditions across platforms. While VGames has observed “very strong returns” in the mobile gaming market with a “very healthy exit environment,” the same favorable conditions do not currently exist for PC and console gaming. The Indie Fund represents the firm’s strategic effort to support and capitalize on premium game development outside the mobile space.
The fund targets developers creating premium experiences rather than those relying on free-to-play mechanics, suggesting VGames believes there is significant opportunity in the traditional premium game market for indie developers.