Game Publishers vs Investors: Key Differences

I have made deals with both investors and publishers.

Here are the key differences between them based on my experience:

Funding
– Publisher: Provides milestone-based funding specifically for the game.
– Investor: Provides lump-sum or structured equity investments for the company.

Terms & Ownership
– Publisher: Takes 30-70% of game revenue, may own the game IP, and covers their costs before distributing profits.
– Investor: Takes 20-40% equity in your company, with the IP remaining yours.

Focus
– Publisher: Seeks marketable concepts, high success potential, clear USPs, and alignment with their portfolio.
– Investor: Looks for great founders, a cohesive team, and a strong, innovative vision.

Deal Speed
– Publisher: Faster (1-3 months) with a detailed publishing agreement.
– Investor: Slower (3-6 months) due to due diligence, legal issues, and incorporation.

Additional Value
– Publisher: Handles marketing, distribution, game feedback, QA, and localization.
– Investor: May provide marketing loans and help with legal, hiring, fundraising, and networking.

Involvement
– Publisher: Highly involved in game design, marketing, and project direction.
– Investor: Focuses on financial oversight and returns, not daily operations.

Cooperation Duration
– Publisher: Short-term (1-3 years), often ending after game launch.
– Investor: Long-term (5-10+ years), invested in your studio’s success across projects.