With more than 3 billion active video gamers and about 85% of the world’s population using smartphones, the opportunity for gaming and mobile app developers has never been greater.

That’s Where Capstone’s Invoice Factoring Comes In.

More than 3.2 billion people play online games, generating more than $173 billion in mobile gaming revenue in 2023. Fortune 1,000 companies have identified this trend as an effective way to introduce new products and establish brand loyalty. Despite this, game and app development remains a risky venture due to several reasons including the high cost of development, limited capital resources, intense competition within the market, and the rapidly changing technology landscape.

The popularity of video games is nothing short of amazing. Online and mobile app social gaming has significantly widened the reach of the video game industry. By 2025, the revenue from the global gaming market is expected to generate more than $550 billion. There are currently more than 1.7 million apps and games available in the Apple App Store and some 2.6 million available in the Google Play Store.

When games or mobile apps hit big, they can generate mass amounts of revenue, but most fall short. It takes a talented team of developers, creators, artists, and effective marketing to meet revenue goals. Many large companies have developed marketing programs for their products and new product launches. For application developers, co-marketing and co-branding with a mobile app is a great opportunity to increase sales and become a leader in the mobile app industry.

How to determine if Capstone’s Invoice Factoring is right for you:

All of that takes money. Unfortunately, many video game and mobile app development companies are undercapitalized and lack the funding to support large corporate clients. Large corporate clients are not interested in prepaying for the development of a product.

You may possess the technical knowledge, creativeness, and entrepreneurial drive however, one of the biggest challenges you will encounter is obtaining the business funding you need. To beat the odds as a developer, you need access to capital. Having the funding you need at key milestones can be the difference between getting your client’s product to market on time or losing a repeat customer for life.

Capstone provides alternative funding options to power your gaming and mobile app development, enabling publishers to create top-performing titles and increasing their odds of success.

How it Works

Challenges of Funding Gaming and Mobile Apps

Developing video games and apps is not easy, and it doesn’t come cheap. Besides the hard work and creativity that goes into the platforms, access to sufficient funding is crucial. However, conventional business financing is better suited to traditional businesses. These industries are anything but conventional. Many lenders don’t understand the potential or challenges involved in the gaming and mobile app industries and are often uncomfortable with the risk it presents. Unless you have deep pockets to fund your business, you are probably relying on crowdfunding platforms or selling equity in your company. However, these methods may not produce enough cash flow to properly service a portfolio of corporate clients who need the games and mobile apps to support the marketing and branding of their products. Secured and unsecured loans can put your assets at risk and may require high-interest rates. For publishers of entertainment titles, video games, and mobile apps, Capstone can provide multiple funding options, including factoring for working capital.

Funding Solutions for Developers

If you do business with creditworthy customers or have money tied up waiting for slow-paying clients, invoice factoring might be the right solution for you. With Capstone’s funding solutions, you can use proceeds to pay for:
  • Payroll and contractors
  • Equipment and software
  • Operational costs
  • Licensing and marketing
  • Physical premises and design studio
  • And more
For designers, producers, and publishers, game and app development revenue can significantly lag the costs of product development. You may not be able to wait to get paid for the work you do or for trailing revenue to arrive after products are released. With secured funding, you can better manage cash flow and have sufficient working capital to keep development moving forward during these cash flow crunches. After titles are released, factoring can help with ongoing maintenance and updates, marketing and advertising, and user engagement expenses.

Why Choose Capstone

Traditional business financing is suited for conventional businesses.  The gaming and mobile app industries are anything but conventional. Business owners are in need of innovative solutions to get through periods of the product’s development. Capstone understands this as well as the evolution of the gaming industry and how apps are developed. You need to move fast, so we offer fast turn-around times for approvals. Traditional loans or lines of credit often require lengthy applications, stringent credit requirements, and track records of success. Even if you have everything lenders require, it can take months for approvals and funding. With the pressure to get products to market quickly, such delays can be costly. When you work with Capstone for funding your development contract, you can:
  • Get early and immediate access to cash flow
  • Fund ongoing work projects
  • Meet milestones and other deadlines on time
  • Invest in new equipment
  • Hire the talent you need
  • Cover immediate costs that can’t wait
  • Take on multiple projects simultaneously
  • Grow your business
  • Fund marketing initiatives to increase your customer base
  • Develop new revenue-generating activities
  • Outsource component development
  • Provide consistent, predictable cash flow
Unlike a business loan, invoice factoring does not create additional debt, give up equity to venture capital firms, or require physical assets as collateral to guarantee a loan. Capstone does not require multi-year contracts, giving mobile gaming, PC gaming, and mobile app platform developers the flexibility of selling invoices only when working capital is needed.

Fast, Easy Funding for Developers

Capstone is a private finance company that specializes in accelerating cash flow for clients and helping fund under-capitalized businesses to meet their growth goals. We understand the gaming and mobile app business and what it takes to develop top-performing products. We can help you with the funding you need for success. Contact Capstone today at (212) 755-3636 or connect with us online to discuss your options with our funding consultants.
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