As VCs slow gaming investments, Frost Giant turns to community for fresh capital

The video game industry has become a major force, overshadowing the box office in revenue. Frost Giant, a gaming startup, is innovating its fundraising approach by turning to its community for equity crowdfunding. The company’s decision comes after a successful Kickstarter campaign for its real-time strategy game Stormgate, which raised millions of dollars. This new approach may provide the necessary capital for marketing and operations.

Gaming, venture and the state of RTS

Despite the rise of esports, real-time strategy (RTS) games like Starcraft and Starcraft 2 were pivotal in the development of competitive gaming. Frost Giant, with a team that worked on acclaimed games like Starcraft 2 and Warcraft 3, is creating Stormgate, a spiritual successor to the Starcraft franchise. The company’s Kickstarter event generated significant interest, and now it’s turning to the community for more funding before the game’s launch. The company has already gained traction, with over $600,000 in reservations for its community fundraise. This new capital could extend Frost Giant’s post-launch runway and help attract traditional venture funding, which has declined sharply in the gaming industry.

Stormgate will offer in-game purchases, catering to the trend of gamers investing time and money into their digital avatars. The game is already generating interest, with a strong following on the Steam platform. However, the real test will be the game’s early access release.