What's the difference between studio and project funding?

August 27, 2024

We talk a lot about how the Baby Ghosts program focuses on studio development, but what does that actually mean? Today we’ll break it down.

Here’s the pattern that exists for indie game devs right now:

  1. Folks come together around a project concept;
  2. They get excited about it, but they haven’t necessarily thought much about how they’ll work together;
  3. They apply for funding for that project, usually involving a of time and energy;
  4. If they’re lucky, they get the project funded;
  5. They work their butts off to make the project happen with the limited funding they have;
  6. If they’re able to finish within those constraints, the project is released and then…
  7. They have to do it all again!

Unless the project is a huge success (and even when it is), teams end up chasing project funding over and over again, sometimes with an entirely different team. This process wastes a lot of time and resources and doesn’t facilitate long-term sustainability or ongoing collaborations.

In Weird Ghosts’ survey of Canadian game devs, we found that “Many people found it difficult to sustain a team when all the funding they were getting was project-based, thereby leaving them with no opportunities to build a solid and healthy foundation for their studio.”

So, what is studio development?

Studio development funding focuses on the studio itself: the team; how they’ll make decisions; their roles and responsibilities; their values and goals; their plans for sustainability; and much more. Focusing on the studio doesn’t magically solve the problem of project-based funding, but it creates a more solid foundation, with possibilities for more collaborative decision-making, ownership over labour, and team longevity.

Here are some ways that studio funding can help:

  1. It can provide time for teams to think about how they want to collaborate and whether they share the same values before launching into a long-term project together.
  2. They have more opportunities to think about budgeting and cash flow and develop long-term plans for financial sustainability.
  3. Instead of rapidly expanding a team to finish a project quickly, folks can build small, tight-knit teams.
  4. Studios can consider other possibilities for financial support, such as work-for-hire for specific skills. This can allow them more control over their time and labour.
  5. Teams have more time to develop concrete descriptions of their studio. Those clear narratives can make them more viable for other types of funding in the future.

This is why the Baby Ghosts runs our peer accelerator. We believe studio funding is a critical part of creating more sustainable teams and strengthening the indie game industry.

If you’re interested in the program, check out our website. Applications for our next cohort are due September 13, 2024.