TIGA has urged the UK Government to start a Video Games Investment Fund

The Independent Game Developers’ Association (TIGA) has released a report calling for the UK Government to create a Video Games Investment Fund (VGIF) to support small and medium-sized businesses in the games industry. 

In the recently published ‘Sustaining Success: A Video Games Investment Fund (February 2023)’, TIGA examines games industry survey data from around the globe, and uses economic modelling to present their case for the benefits of a VGIF.

A VGIF would provide funding between £75,000 and £500,000 to games developers around the country, and allocations above £100,000 would have to be matched by external funding companies to ensure that companies don’t just rely on the government for funding.

Up to 35 different UK games developers could be funded per year, for a total of £5 million GBP. It also includes provisions for investment boot camps by industry specialists and mentoring from industry veterans for anyone who would receive the cash, alongside actively promoting loan recipients for investors.

While that all sounds like a lot, the VGIF would yield a return in net tax contributions to HM Treasury of £56.5 million GBP at a cost of £26.5 million over the next five years. That would be a 213% return on their investment by 2027, and would drive both financial growth and increase employment in the games sector.

“Difficulty accessing capital has consistently been one of the key factors holding back many games developers in the UK. TIGA’s proposal for a Video Games Investment Fund would improve studios’ access to finance and encourage the development of new IP, investment, job creation and regional growth.”  said Dr Richard Wilson OBE, CEO of TIGA.  

“Similar schemes to TIGA’s proposed VGIF operate in Belgium, Finland, France, Germany, Spain, Australia and Canada. If the UK games industry is to realise its potential and be the best place in the world for games development, then we should introduce a VGIF.”

“The UK video games industry is a high-skilled, high-tech, and export-focused industry. Our sector has the potential to support employment and growth throughout the UK, with clusters of games development from Brighton to Dundee and approximately 80 percent of the workforce based outside of London,” said Jason Kingsley OBE, TIGA Chairman.

“TIGA’s proposal for a VGIF would reinforce growth in the UK video games sector.”

About Vince Pavey

Vince is a writer from the North-East of England who has worked on comics for The Beano and Doctor Who. He likes to play video games and eat good food. Sometimes he does both at the same time, but he probably shouldn’t.

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