Improved access to finance vital to future of video games industry

23/05/2011

Event to increase engagement between industries

UK video game developers and investors will be matched together in a series of 'speed-date' style meetings to build engagement between the two industries as part of an event by the National Endowment for Science, Technology and the Arts (NESTA).

'Investing in Video Games', which takes place at NESTA on 25 May,  is part of a series of events which will discuss how to raise money for video game development and help devlopers understand the key factors that an investor looks for.  Speakers will include Ed Vaizey, Minister for Culture,  Communications, and the Creative Industries, Ian Livingstone, Life President of Eidos, Ben Holmes, Index Ventures and Tony Pearce, TeePee Games who will give their perspectives on how to create win-win relationships between investors and developers.

The video games sector is vitally important for the UK economy and, if it is able to overcome existing barriers to growth, stands to generate £1 billion more sales by 2014.[1]  But many games companies say they see problems in accessing finance as a key factor influencing their ability to grow their business[2].   

A roundtable discussion on finance for video games at the Department for Culture, Media and Sport, chaired by Ed Vaizey, earlier this year highlighted the appetite from games developers and investors for a networking event to promote a better understanding between the games sector and the finance community and support direct connections between games businesses and potential investors.

'Investing in Games' aims to address these issues through a series of discussions and pre-booked, one-to-one meetings between developers and investors

Ed Vaizey said: "The games industry in the UK is fantastic and there is so much more it can achieve. But it became really clear when I hosted a meeting on finance earlier this year that even established developers can find it a challenge to attract investment. This event by NESTA is exactly what developers and investors have told me they need. This is a great chance for both sides to learn from each other, develop relationships and hopefully kick-start real business opportunities."

Matt Mead, Managing Director of NESTA Investments, said: "The video games sector offers exciting growth potential for the UK economy. But if the industry is to continue to compete and lead on a global stage, we must urgently find sustainable sources of finance that provide a win-win situation for investors and developers alike."

Ian Livingstone, Life President of Eidos, said: "The video games industry is in transition. Games are moving from being a product to a service, monetizing global audiences via high speed broadband. The UK has an incredible history of creating original and innovative IP. access to finance and the ability to scale are vital for success in the online world. It is essential that UK innovators and investors come to understand each other, and form long term partnerships to take advantage of this high growth market."

The series of events are part of a wider practical programme of work from NESTA to support the video games sector and help tackle some of the barriers to growth.

For more information and details on the event visit www.nesta.org.uk

-ENDS-

Notes to editor

For further information, case studies and to arrange interviews, please contact:

Jan Singleton: 020 7438 2606/ jan.singleton@nesta.org.uk

About NESTA

NESTA is the UK's foremost independent expert on how innovation can solve some of the country's major economic and social challenges. Its work is enabled by an endowment, funded by the National Lottery, and it continues to operate at no cost to the taxpayer.

NESTA is a world leader in its field and carries out its work through a blend of experimental programmes, analytical research and investment in early-stage companies. www.nesta.org.uk   

[1] Source: The estimate for video games draws on the market size figures produced by Games Investor Consulting in NESTA (2008), "Raise the Game', NESTA: London and projections for the global video games industry in PwC (2010), 'Global Media and Entertainment Outlook 2010-2014'. London: PricewaterhouseCoopers. 

[2] Source: 'The Money Game: project finance and video games development in the UK' (February, 2010) http://www.nesta.org.uk/publications/policy/assets/features/the_money_game_project_finance_and_video_games_development_in_the_uk