Xsolla Launches Game Investment Platform
* 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
Xsolla, the leading video game commerce company, today announced the launch of its innovative solution for game developers and investors - Xsolla Game Investment Platform.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210721005576/en/
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.