Vgames, a venture capital firm, has introduced a new $10 million Indie Fund

Vgames, a venture capital firm, has introduced a $10 million Indie Fund designed to support smaller gaming studios by providing project financing in return for a share of revenue, rather than taking equity. This fund targets developers working on high-quality PC and console games, allowing for the creation of projects that are commercially ambitious without relying on free-to-play monetization strategies.

Investor Lior Elovitch, in an interview with GamesIndustry.biz, discussed the contrast between the vibrant exit opportunities seen in the mobile sector and the more challenging environment facing PC and console markets. As a result, the Indie Fund will focus on revenue sharing or project-based financing models rather than acquiring equity shares in studios.

"The exit opportunities for PC and console studios have not been as fertile in recent years, both in frequency and in scale," Elovitch noted. "To address this, we're adopting a new approach that leverages revenue sharing to align with how publishers typically engage with studios."

He further explained that this method is expected to yield stronger returns for Vgames' investors, while also benefiting studios familiar with revenue-sharing models. The firm aims to support 10 to 20 studios with individual investments ranging from $500,000 to $1 million, tailored to each studio's requirements.

Importantly, Vgames emphasizes that they do not interfere with the creative process or strategic decisions of the studios, which retain independence along with their IP rights. Partner Daniel Mironov highlighted how technology has empowered smaller teams to produce significant games, though available financing models haven't kept pace.

"Smaller developers today are capable of competing at high levels due to technological advancements, yet traditional funding methods don't match current industry needs," Mironov said. "Our goal is to offer adaptable financial solutions that support growth while maintaining studio independence."

Established in 2020, Vgames initially secured $30 million to invest in studios based in Israel and Eastern Europe. The firm currently manages $400 million and has contributed to the growth of nearly 50 companies, including noted names such as SuperPlay, 1047 Games, and Pocket Haven.