Pilot 1 - 3: A New Approach to Investor-Developer Collaboration

The gaming industry has long faced challenges in aligning investor expectations with the realities of game development. While investors seek clear financial returns, developers are driven by creativity and innovation. To address this disconnect, a series of pilot initiatives were launched, bringing together a select group of investors, studios, and industry representatives to explore potential solutions.

A structured approach to Understanding the investment Gap

As an initial step, Pilots 1–3 focused on facilitating open discussions in secure, informal settings, fostering dialogue between key stakeholders. These discussions, held in Linköping, Stockholm, and Vilnius, brought together game studio founders and investors to collaboratively identify investment challenges, mitigate risks, and explore sustainable funding models for gaming start-ups.

One of the most significant takeaways was the need for developers to better understand investor perspectives. Many investors—especially those from outside the gaming industry—struggle to assess the success potential of games in such a highly volatile market. To bridge this gap, it was suggested that game studios expand their pitches beyond financial and creative potential, incorporating broader societal impact factors such as educational or environmental benefits. This concept was further explored in Pilot 19, which examined SDG-driven business opportunities under the Sustainability Nexus initiative.

Another key discussion point was the importance of early investor involvement in the development process. Investors emphasised the need for stronger performance-tracking metrics to assess project progress before commercialisation. Unlike other tech investments, game development follows a unique trajectory, requiring specialised tools to evaluate pre-release success potential. Implementing such metric-driven tracking systems could significantly enhance transparency, improve risk assessment, and strengthen investor confidence in the gaming sector.

These first pilots were extremely valuable for BSG-Go! as they not only validated again the need for action in the gaming industry, but also has provided crucial insights that have guided the projects future efforts and served as initial starting points to strengthen the relationship between investors and game developers. These insights include:

1. 1. Investor-Developer Relationships Must Evolve: Studios should consider presenting broader societal values in their pitches, such as educational or environmental impact.
   2. The Challenge of Pure Gaming vs. Gamification: the importance of presenting clear financial metrics in investment proposals, making it easier for investors to assess potential returns.
   3. Early-Stage Investments and the Risk of Premature Exits: early exits by founders remain a key concern. One proposed solution is an owner’s directive, a structured agreement ensuring that founders remain committed for the long term
   4. The Growing Appeal of Co-Investments: To mitigate risks, co-investments—where multiple investors contribute to a single project or company—were highlighted as an effective strategy.
   5. Social Due Diligence: More Than Just Numbers: Beyond financials, investors want to connect on a personal level with the teams they fund.
   6. Educating Developers on Investor Collaboration: Developers should view investors as partners who provide business expertise and financial sustainability, not just funding.
   7. The Potential of Project Investments: One emerging investment model discussed was project-based funding, where investors fund specific game projects rather than entire studios.

Building on these insights, Pilot 4 introduced a practical solution in the form of a curated “Hot List”—a tool designed to incorporate key findings from previous discussions. This initiative, known as the Spotlight Tool, is a collaborative platform developed in partnership with game development hubs across Europe.

Programme Manual Online

Choose