Crowdfunding is based around seeking money for an idea or a project from interested parties and future users in advance.

Crowdfunding has become increasingly common as a form of investment. It involves an entrepreneur presenting a business idea and seeking financial support from private individuals and businesses, usually via the internet. It can be a good way of testing demand for an idea or project. 

In many cases, the method is used alongside a company raising external capital in the form of investments in the company or a publisher investing in a project. You should then remember that it is important that you make sure that the ownership of the company, the project and the game is clear. 

Crowdfunding can also be one way of marketing your game. A user who contributes capital could see it as an advance order for the game: a person who contributes owns nothing, but will get the game when or if it is released. 

If you are considering applying for a patent, crowdfunding could affect the novelty value and therefore stop you from being granted a patent. You should also remember that you can apply for trademark protection and design protection before you make your game public via crowdfunding in order to secure your intellectual property rights. Make it clear you have applied for intellectual property rights before you present your game. 

Things to remember 

  • Draw up a business plan and a budget.
  • Establish clear financial targets.
  • Spend time putting together a good presentation, but protect your intellectual assets first.
  • Choose a time when the project feels ‘mature’.
  • Disseminate information about your project.
  • Keep in touch with your funding sources.
  • Consider the risks of an unsuccessful crowdfunding campaign.
  • The Distance and Doorstep Sales Act applies.
  • Find out the VAT rate for crowdfunded projects from the Swedish Tax Agency.

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Examples of crowdfunding services

  • Kickstarter
  • Fundedbyme
  • Pepins
  • Indiegogo
  • Crowdcube