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After raising around $35 million in its first funding round and another $2.3 million on Kickstarter, Stormgate developer Frost Giant Studios is now inviting supporters to invest in the company with an upcoming “crowdequity campaign.” We are trying to raise even more funds by calling for help. ”
Although the capital campaign isn’t scheduled to begin in earnest until March, Frost Giant has set up a “Test the Waters” page on StartEngine to allow enthusiasts to reserve spots in advance. Perhaps this gives the studio an idea of the level of interest from potential investors (the whole “testing the waters” thing), and pre-order holders can get an additional 5% share bonus if they sign up now. You can receive it.
This is very different from a Kickstarter campaign, where supporters commit a set amount of money in exchange for a specific reward. In this case, you are literally buying shares in the company. And, like any investment, there are no guarantees. The fine print on the StartEngine page warns that any investments are “speculative, illiquid, and involve a high degree of risk, including the possibility of losing your entire investment.”
Having already raised $38 million, it’s natural to wonder why Frost Giant is still seeking even more funding for a game that’s at least a few months away. The short answer is that games are extremely expensive to produce, Gerald Villoria, Frost Giant’s director of communications, said earlier this year.
“Budgets for AAA games these days are often in the hundreds of millions, and that doesn’t include the marketing budget,” said Gerardo Viloria, director of communications for Frost Giant, whose Kickstarter campaign launched in January. said after. “So while $35 million may seem like a lot of money, it pales in comparison to what the biggest studios are spending. It was a lot of extra features and special amenities that were only possible on a budget, as a physical collector’s edition of our game, and to expand our beta pool.”
Frost Giant CEO Tim Moten said in a statement that the funds raised through the equity campaign will “enhance our strategic marketing campaign and help us prepare for Stormgate’s early access launch this summer.” We will be ready.”
There’s also clearly an expectation that this investment will help ensure stability for the studio during a very turbulent time for the gaming industry. According to VG247, Frost Giant said it decided to launch this new investment campaign because it is a “major publisher.” [are] Every day we lay off hundreds of game workers and make decisions that prioritize short-term profits over the well-being of workers and players… We are choosing to self-publish the game in the West with direct support from the community. “
We recently described Stormgate as a mashup of StarCraft 2 and Warcraft 3 with “some fresh twists,” but we also noted that it’s being developed by a team formed by Blizzard veterans. When you think about it, this isn’t all that surprising. RTS fans are really excited about this. This was his second most played demo at the recent Steam Next Fest. Early access is expected to begin in the third quarter of 2024.
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