Call for new £5m games fund to help developers

DIGITAL: Games industry body says fund could be administered in Dundee

The body representing computer games developers has called on the UK Government to set up a new £5 million fund to drive growth in the industry.

TIGA said the sector’s prospects were being stifled by a lack of access to development finance.

It is calling for a new governmentbacked fund – possibly managed from Dundee – with the ability to offer matched grant funding of up to £200,000 to 25 studios each year.

The group said the impact over five years would be considerable, creating an estimated 600 new direct jobs within development studios and a further 1,000 in the supply chain.

TIGA said the fund would have the power to assist about one in five UK studios between 2017 and 2021, and boost GDP by £178m in the period.

It has suggested the UK Games Talent and Finance Community Interest Company – part of the Dundee-based UK Games Fund – as a possible operator of the fund alongside other contenders.

“Access to finance is the most persistent challenge for many UK games studios,” said TIGA’s Dr Richard Wilson.

“TIGA’s plan for a games investment fund (GIF) would enable developers to access finance more easily, promote the creation of new IP (intellectual property) and build up the UK video games industry.

“The matched funding criteria would multiply investment and employment in the industry.

“The GIF would also promote investment in capital, skills and innovation, all factors which contribute to productivity growth.”

Paul Durrant, CEO of the UK Games Fund, said he was supportive of TIGA’s call for a new fund to be set up.

He said the UK Games Fund helped identify and support early stage games companies and a new cash pot could help plug the gap at the next stage of development as studios grew.

“One of the challenges with very early stage companies in the games industry is you often get a team that comes together to develop a single game,” he added.

“When they do that, investors can see them as a one-trick pony and not particularly investable.

“We need to make these companies more attractive.”

Picture: Dougie Nicolson. Dundee has a strong reputation for video games development and the city-based UK Games Fund has been suggested as a possible custodian of a new games investment fund.