Recent years have also seen growth and Griffin Gaming Partners) and in work-for-hire studios as the costs strategic corporate investors (such and resources needed to produce as Tencent Games). Understanding AAA games have grown. Many the different types of equity investors studios use work-for-hire as a source and what their drivers are is crucial of steadier, lower-risk revenue which to determining whether equity allows them to build their studio and investment, and a particular equity also work on their own projects and investor, are the correct fit for a IP. There are notable examples of development project. studios finding great success with The three main types of equity this approach, growing into large investor are: independent developers in their own right (such as Behaviour Interactive). angels The financing model: venture capital (VC) funds taking equity investment strategic corporates (strategics). The other main source of funding Angels for a game project or studio is selling equity in the business in Angels are usually high net worth exchange for capital investment. individuals who may have been This is often a significant step in the founders before who will typically growth journey of any business and invest sums into new gaming brings with it great opportunity, companies, usually in exchange for as well as challenge. common equity and on relatively simple terms. They usually invest The number of investors focused lower amounts than VCs or strategics on the gaming industry has grown but will often have good knowledge substantially in recent years, of the industry and experience as including sector-focused venture a start-up founder. Angel investor capital funds (such as BITKRAFT capital also tends to be more Ventures, Lightspeed Ventures patient than VC capital. 12