NetEase, Inc. today announced the formation of the NetEase Success Fund, a new financing option for mobile game developers that offers an alternative to the traditional publishing model. The new funding initiative provides up to $500,000 for each independent developer accepted into the program to fund marketing and advertising needs for their mobile game. This program is designed to empower developers to retain the rights, creative control, and full ownership of their products.
Unlike typical publisher deals, the title-based NetEase Success Fund is a revenue sharing program in which NetEase will only receive a pre-defined set dollar amount as repayment. Once the revenue share cap is reached, the developer will have no additional financial obligations to NetEase.
“There are so many developers with games that have great potential, but are constrained by rising user acquisition costs,” said Ryan DeSanto, Director of Business Development at NetEase North America, who is managing the fund. “Our goal is to create an alternative to the traditional mobile game publishing model, where developers can gain access to the resources necessary to scale their audience without giving up control of their business.”
“Not only are we committed to bringing NetEase’s games to a Western audience, but also to becoming an active member of the global game developer community,” stated David Ting, General Manager of NetEase North America. “The NetEase Success Fund gives us the opportunity to expand our reach in the mobile space and help more developers bring fun experiences to gamers.”
NetEase is one of the largest internet technology companies in the world by market capitalization. NetEase currently holds the #1 top grossing position on the China App Store with the mobile version of Fantasy Westward Journey, boasting more than 20 million downloads and a record peak concurrent user count of two million after its launch in March 2015. NetEase recently opened its first overseas office in North America, and will be publishing its first mobile game, Speedy Ninja,for Western markets in the Fall of 2015. In addition to game development and publishing capabilities, NetEase now offers developers third party publishing options including licensing for the Chinese market and funding for independent projects.