New Funding for Indie Devs

Yesterday, the Indie Games weblog had an article about opening of a new funding website for indie game developers called 8-bit Funding. Read a short interview with the organizer.

After reading through the site on how the system works I have few doubts. The developer puts an introduction of the project to the website and defines the goal for raising the money. The funders seem to be just regular persons, who should be given something in exchange for the funding. These “something” are called perks. The perks can be whatever the developer choose, a free copy of the game, a private lunch with the developer team, whatever you can imagine in your head.
The money will be donated via Paypal . I know not everyone likes this, but I guess it is a good way of secure transfer. Of course, this comes with the delivery fee. Here is a short excerpt from the site on how the actual money goes:

“PayPal charges 2.9% + $0.30 per transaction. So, for example, a $20 funding will come out to Ā $19.12.
Our own charge is 5% which we take AFTER PayPal takes their charge (you get more this way).
So, after both PayPal’s and our fee on a $20 funding contribution you’ll receive $18.16 of that.

So, this means there is less than 10% loss of money from the actual donations gained. But, as I looked from the main page of the website, a lot of people were requesting for complete amount of 1000-9000 dollars. That already means 100-900 dollar loss. Well, the good thing here is, that you are not giving away any shares of your company for the money. So, all in all, maybe it is a good deal? At least if the other option you have would be zero money.

All in all, this is definitely something worth following. Even though it just opened there are already some projects requesting for money. Lets see what happens in the next six months and return back to the case then.