A new venture firm has been established exclusively to raise funds for game development.
Alan Kane, previously studio finance and operations director of Midway’s Austin studio, has started Archangel Ventures with the sole purpose of funding video game development, reports Statesman.
Kane is in the midst of raising a $12 million to $15 million fund for the purpose of investing in individual titles from developers happy to create downloadable content for iPhone and Xbox Live. Kane is also said to be concentrating on games with budgets totalling no more than $200,000.
"We are looking for companies that are going to take advantage of digital distribution," said Kane, who isn’t concerned with buying equity in the developers behind the titles he funds.
"The terms are more generous and, quite frankly, I am bringing to the table a class of investors interested in the space," revealed Kane, who hopes to let developers keep 60 to 70 per cent of revenue and retain control of any intellectual property through his Austin-based venture firm.