By Pedro 
In this article, we explore the crowdfunding process, highlight popular donation platforms, and outline a list of successful indie games that have thrived thanks to crowdfunding. Keep reading to discover how these elements combine to launch successful projects in the gaming world.
What is Crowdfunding?
Crowdfunding involves funding a project or venture by raising money from a large number of people, typically through the Internet. This strategy is a form of crowdsourcing and serves as an alternative to traditional finance methods, enabling creators to bring their ideas to life with the support of a global audience.
Who Needs Crowdfunding?
Collecting donations via crowdfunding is crucial for various participants. The project initiator proposes the idea, while supporters—individuals or groups—fund those ideas they believe in. Online platforms play a pivotal role by connecting these parties and facilitating the launch of projects, including some of the best crowdfunding games on the market.
The Crowdfunding Process
The crowdfunding process starts with an individual possessing an idea. This creator then chooses a donation platform, presents the project under an appropriate category—like music, movies, or independent video games—and appeals to the community for support. Upon reaching the funding goal, the creator can complete the project and release the product to the public.
Types of Crowdfunding Platforms
The platform types vary widely, and each of them grants chances to millions of users. Popular types include Debt-Based, Donation-Based, Digital Security, Equity Crowdfunding, Litigation, and Rewards Crowdfunding.
Each platform serves different roles and can meet various project needs, making it essential for creators to choose the right type of crowdfunding platform for their projects.
Crowdfunding Sites
Crowdfunding sites are pivotal for raising capital, with individual contributions sometimes starting as low as $10. It’s important to understand the terms and conditions of these platforms before launching a project. Here are some of the major brands on the market:
- CircleUp
- Crowdfunding
- EquityNet
- Experiment
- GameFound
- GameOnTableTop
- GoFundMe
- DonorsChoose
- Fundable
- Fundly
- FundRazr
- Indiegogo
- JustGiving
- Kickstarter
- Mightycause
- Patreon
- Pozible
- RealCrowd
- RealtyMogul
- SeedInvest
- StartEngine
- Wefunder
You should know that crowdfunding sites usually generate revenue by taking a percentage of the funds raised, typically ranging from 5% to 12%. Creators should thoroughly investigate these fee structures to avoid any unforeseen financial burdens.
The Best Crowdfunding Games
Crowdfunding has enabled many companies to create innovative games. While not every project meets expectations, numerous indie games have become significant successes through crowdfunding efforts. Here, we highlight some of the most renowned and successful indie games developed through this method:
- Bloodstained: Ritual of the Night
- Castlevania
- Desert Child
- Factorio
- Flynn: Son of Crimson
- Outer Wilds
- Psychonauts 2
- Savior
- Shaq-Fu: A Legend Reborn
- Shovel Knight
- Undercrewed
- Yooka-Laylee
Those looking to create a game should consider starting with a demo or initial development phases to attract investors effectively. Success stories of crowdfunded games can serve as a great inspiration, especially for those considering developing experiementall 2D platformers.
Pros & Cons from Crowdfunding
What is crowdfunding without its challenges and benefits? The crowdfunding industry is regulated to protect all parties involved, with specific rules on who can fund new businesses and how much they can contribute. While these regulations help mitigate risks, they can also limit some crowdfunding activities.
Risks & Benefits for Creators
Crowdfunding games allow creators to interact directly with potential consumers and gauge public interest. However, if the funding goal isn’t reached, all pledged financing is returned to investors, which can harm the reputation of a start-up company. Successful funding, on the other hand, builds trust and can lead to further investment in future projects.
Risks & Benefits for Investors
Investors often receive rewards for their contributions, such as exclusive participation in product launches or special gifts. Crowdfunding can provide attractive returns and reduce costs for investors.
However, risks include the potential diversion of funds or complete project failure. Investors are advised to thoroughly research new markets, such as game development in Cuba, before committing funds.