LOS ANGELES -Thursday 22 July 2021 [ AETOS Wire ]
Innovative funding ecosystem aims to align the interests of independent game developers and accredited investors through a revenue-split structure
Xsolla and its affiliates to contribute up to $40 million alongside accredited investors to further expand opportunities for developers on the new platform
(BUSINESS WIRE)-- Xsolla, the leading video game commerce company, today announced the launch of its innovative solution for game developers and investors - Xsolla Game Investment Platform.
The company’s video game commerce tools have already helped more than 1,500 developers and publishers elevate their efforts to market, sell, connect and optimize over 2,400 games. Its goal is to help bring even more promising games to market through the Xsolla Game Investment Platform.
The platform is designed to achieve these important goals:
Simplify the fundraising process for independent developers and give them access to capital.
Introduce accredited investors to game projects selected by Xsolla’s experts.
Align the interests of independent game developers and accredited investors through a revenue-split structure.
Investors have the opportunity to diversify capital and risk across multiple projects.
“We’re very pleased to announce a new class of securities that earn a return from game revenues. Independent game developers have few ways of bringing their projects to life, and many investors have no easy way to filter and understand the opportunities in this ever-expanding segment of the gaming market,” said Chris Hewish, President of Xsolla. “Our expertise in video game monetization, combined with a large network of indie game developers, enables us to leverage our position to link developers with serious, accredited investors - and we can’t wait to see the next big game take off because of it.”
Background and Context
The gaming industry hit $174.9 billion in 2020, with smaller independent developers making up a growing and important part of the industry. Yet available capital to back this segment of the industry is fragmented, which makes it difficult for independent developers to find the right investor to support their efforts.
The Xsolla Game Investment Platform will offer game developers another avenue to obtain funding to finish and launch, while maintaining control over their product. Rather than spending time to seek out investment opportunities in the games market, investors can find them and their projects on the Xsolla Game Investment Platform. Xsolla is taking the idea of video game investing to the next level. The Xsolla Game Investment Platform will connect accredited investors directly with game developers with projects already in development and awaiting additional funding.
The terms of the investment opportunities that are planned for the Xsolla Game Investment Platform will be revenue split-based, which will offer investors the potential to receive returns from the sales of games rather than waiting for a liquidity event in the case of equity-based investments. The revenue-split structure of the game securities is developed based on Xsolla’s experience fostering strong commercial relationships throughout the industry, and in partnership with leading independent game studios.
Xsolla is actively onboarding select investors and game developers each week to continue building a high-quality investment community. For more information, please visit www.xsolla.com/gip.
Xsolla is the video game commerce company, powered by its Transaction Engine and Business Engine, that helps developers and publishers market, sell, connect and optimize their games globally. Serving only the video game industry, the Xsolla Transaction Engine powers the full suite of cloud-based tools to promote and monetize projects, while Xsolla Business Engine provides clients with the roadmap to maximize those tools, and connect them with industry partnerships to expand their business. The two work seamlessly together -- for businesses of all sizes, from indie to enterprise -- to solve the complexities of distribution, marketing and monetization so they can increase their audience, sales and revenue. Headquartered in Los Angeles, with offices worldwide, Xsolla operates as a merchant and seller of record for major gaming entities like Valve, Twitch, Roblox, Ubisoft, Epic Games and KRAFTON. For more information, please visit www.xsolla.com.
The information contained herein is not investment advice and does not constitute a recommendation to buy or sell any security or that any transaction is suitable for any specific purposes or any specific person and is provided for information purposes only. Each investor should always carefully consider investments in any security and be comfortable with his/her understanding of the investment. This document does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Accredited investors will be required to provide supporting documentation evidencing their accredited status. Any investment opportunities available on the Xsolla Games Investment Platform will be made through definitive investment documentation, which potential investors should review and consult with their legal, tax and financial advisors before investing. Xsolla is not an investment advisor, broker-dealer or crowdfunding portal and does not engage in any activities requiring any such registration.
Head of Global Communications
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