TIGA Renews Call for Prototype Fund for Games Developers

By November 27, 2014 Press Releases

TIGA, the network for videogame developers and digital publishers, today renewed its call for the establishment of a Prototype Fund for games developers.  TIGA made the call in the light of data which revealed that Innovate UK, the Government agency charged with promoting business-led innovation, currently distributes 0.4 per cent of its funds to the video games sector.

Following a question posed to Ed Vaizey, Minister of State for Culture and the Digital Economy by Luciana Berger, Shadow Minister, Public Health and MP for Liverpool Wavertree, it was revealed that in 2013/14 Innovate UK provided 0.4 per cent (£1.9 million) of its core budget to videogames.

This compares to £277,000 (0.06 per cent of its core budget) in 2012/13, and no funding at all for the videogame sector in 2011/12.

TIGA’s research indicates that the relatively low availability of finance for UK games companies is restricting their growth potential, particularly the large number of new games companies that have started up in recent years. 44 per cent of UK games companies have started up in the last two years alone.

Difficulties in accessing finance have contributed to a high mortality rate: 29 per cent of UK games companies that have existed at any time in the last five years have closed down.

In a TIGA and ARM survey of 100 games studios published earlier this year, 43 per cent of businesses surveyed listed funding as the single biggest challenge facing their business.

Dr Richard Wilson, CEO, TIGA, said:

“Innovate UK operates some very useful schemes and it is good to see that its funding for the videogame industry has increased over the past two years.  Yet the £1.9 million invested in the video games sector in 2013/14 pales in comparison to the £26 million of Lottery Funds provided to the UK’s film industry each year.

“In 2013 the global videogame market was worth a staggering $93 Billion, far larger than the $15bn music industry, and bigger still than the $88.3bn worldwide film industry, and it represents a huge export opportunity for the UK.

“Innovate UK’s ‘Smart’ grants, which provide grants ranging from £25,000 to £250,000 can be of very helpful to game developers, but only 20 per cent of applications are successful. An expansion of Innovate UK’s Smart grants could help more start-up companies develop new games. 

“The UK Government should look to develop a Prototype Fund to finance early stage game development work and establish a Creative Content Fund to encourage new studio formation, stimulate creativity and co-fund new content development and IP generation. Both programmes could be supported by National Lottery funding or potentially by Innovate UK. These interventions could enable the growth of more successful games businesses and deliver a good return for the UK economy.”

Notes to editors:

  1. TIGA is network for games developers and digital publishers. We are the trade association representing the UK video game industry. We help developers and digital publishers build successful studios, network with the right people, save money and access professional business advice. We also have traditional publishers, outsourcing companies, technology businesses and universities amongst our membership.

TIGA is 90% funded by independent UK businesses. 80% of our board members are developers and/or from UK owned businesses, and 50% of our board are UK business owners themselves. Since 2010, TIGA has won 17 business awards.

TIGA focuses on three sets of activities:

  • Political representation
  • Media representation
  • Business services

This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members’ voices are heard in the corridors of power and positively represented in national, broadcast and UK video game trade media.

Get in touch:

Tel: 0845 468 2330

Email: info@tiga.org

Web: www.tiga.org

Twitter: www.twitter.com/tigamovement

Facebook: www.facebook.com/TIGAMovement

LinkedIn: http://www.linkedin.com/company/tiga

 

For further information, you can also contact:  Dr Richard Wilson, TIGA CEO on: 07875 939 643, or email: richard.wilson@tiga.org Drew Field, TIGA Communications Director on: 07720 643 344, or email drew.field@tiga.org

 

  1. For information on Innovate UK’s investment in the video games industry, see:

http://www.theyworkforyou.com/wrans/?id=2014-10-21.211397.h&s=speaker%3A24924#g211397.q0

 

 

  1. For more information TIGA’s proposals see:

https://www.tiga.org/news/press-releases/tiga-unlock-lottery-cash-for-indie-prototyping

https://www.tiga.org/news/press-releases/tiga-proposes-a-creative-content-fund-to-invest-in-new-ip-and-to-strengthen-the-next-generation-of-games-businesses

 

  1. Innovate UK, formally known as the Technology Strategy Board, is a non-departmental public body set up to accelerate UK economic growth by stimulating and supporting business-led innovation (www.innovateuk.org). Innovate UK currently operates three schemes which games developers can access:

 

IC Tomorrow (https://ictomorrow.innovateuk.org) which provides funding through competitions judged by industry panels and funded in conjunction with third party partners (mainly from the private sector).

Launchpad (https://www.innovateuk.org/-/launchpads) which provides support to specific regions. Regions with a digital media focus include London’s Tech City, Greater Manchester and Clyde. Like IC Tomorrow, Launchpad funding is via competitions with applicants pitching their solutions to specific challenges set by Launchpad and its third party partner companies. The grant funding provided is usually higher (up to £165,000) and covers up to 60% of the proposed project’s cost, with the remainder matched from private or company sources.

Smart (https://www.innovateuk.org/-/smart): Three types of grants are disbursed with rising levels of financial scrutiny: proof of market (up to £25,000 to fund commercial viability assessments), proof of concept (up to £100,000 to fund technical feasibility and commercial viability assessments) and prototype development (up to £250,000 to fund development). As with Launchpad, these grants can only be used to fund between 60% and 35% of the project costs, depending on the size of company and grant in question.

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