Overview
The Games Scale Up Fund for Wales aims to support video game studios based in Wales that are developing commercial games for entertainment. The fund is designed to meet the needs of the Welsh games industry by providing additional funding for growth, talent, and skills development. UK Games Talent and Finance CIC is collaborating with Creative Wales to administer this fund, which will offer £50,000 to £150,000 for games-for-entertainment content.
This funding will open on Tuesday 19th November 2024 and close at noon on Monday 16th December 2024. We encourage early applications.
If you have already had funding from us or Creative Wales, it does not rule you out from applying.
In addition to the guidelines below we will expect you to provide a logical case that demonstrates a positive outcome from our previous grant and how that part of the journey has contributed to the present application.
The Applicant Company
Requirements:
- Wales-registered SME with PAYE employees engaged in games development work in the UK,
- Ownership explicitly set out and with Wales-based founder-director/s as significant shareholder/s,
- This funding is being operated within the terms of the minimum financial assistance (MFA) exemption.* The total previous MFA grant and other MFA subsidies must not exceed £315,000 over a three-year fiscal period (including any prior funding from us) in order to comply with UK subsidy control legislation.
- Not presently facing any acute working capital challenges or liabilities that put the business under any unusual levels of risk, and
- The founders able to fully articulate the rationale for all structural aspects of the business and the growth strategy in the context of building and growing a financially-sustainable Wales-based games development studio and growing PAYE employment, particularly where there are any non-standard business configurations such as dispersed teams / high levels of contracting.
* If you are successful in this application you will be required to sign a declaration confirming that you will monitor all MFA subsidies received within your company to ensure that this cap is not exceeded.
Preference:
- We normally expect companies to not be a recently established start-up, or formed for the purposes of securing this grant. A start-up may be considered where supported by the founders’ effective articulation of the structural rationale as above alongside an immediate publishing opportunity secured because of founder track record.
- Some PAYE employees already onboard, in addition to the founding director/s.
- If previously funded by UKGTF or Creative Wales, being able to demonstrate positive business progress as a result of the earlier support.
- Prior founder(s) track record having developed video games.
The Development Approach
Requirements:
- Funding being required to support a mix of existing and/or new employees, alongside a lesser proportion of contracting, and
- A clear explanation of the development approach in terms of the planned physical location/s of work in Wales and access to talent.
Preferences:
- A positive bias towards employed staff rather than contracting in the planned development approach.
- Opportunities for networking/learning between team members – understanding this will be proportionate to the circumstances of the applicant’s on-site or remote working arrangements.
- Positive impacts on under-representation at a company level arising from the planned hires and a longer-term commitment to addressing any under-representation in the development team. See guidance here.
The Project
Requirements:
- Prototype in place,
- IP at least 51% developed and owned by the applicant or licensed on terms that are aligned with the project’s long-term requirements*,
- Your project must not include gambling elements or mechanisms which could be perceived as such, or any content that we deem to be potentially reputationally damaging (solely at our discretion),
- A primary focus of the applicant’s current development portfolio,
- Games for entertainment focus with potential to secure a commercial audience at scale,
- Eligible costs are staff and contractor costs for hands-on development activity in Wales,
- Ineligible projects include non-entertainment games, student projects/graduation works, games incapable of obtaining a PEGI rating, corporate/marketing functions (etc),
- Evidence of understanding of the target audience and plans to access that audience,
- A credible funding rationale in terms of scale of the request for grant funding in the context of company finances, and
- Ability to demonstrate additionality of this funding.
Preferences:
- Project IP originated and developed by the applicant.
- Use of this funding early / mid development cycle.
- Funding to be spent over a 6–12 month period commencing within four weeks of offer, but applications outside this range will be considered. Financial year end issues may need to be managed in project plans and we will advise if that is the case.
* Licensed IP needs to be discussed with us prior to submission.
Leverage
Requirements:
- Overall project costs at least double the requested grant, and
- Strong additionality case, with our funding making a demonstrable difference in terms of unlocking additional resources, new relationships, platform or audience access etc.
Preferences:
- Direct leverage of other private capital such as a publisher advance arising from our funding award, including evidence of such leverage.
- Our grant being the lowest possible proportion of project costs.
How It Works
In summary:
- Successful grantees will receive full payment of grant in advance of commencement, usually within four weeks of contract completion.
- Grantees will be required to submit monthly update reports on progress.
- The final report will also include an impact survey and an accountant-certified financial report covering all project spend, both of which are compulsory.
- We are intending that the fund intervention will help to develop the field of ‘foundership’ in the indie games sector and we’ll be directing some of our fund monitoring and community engagement towards this aim.
- An external evaluation of the fund will run in parallel and you will be required to engage with the evaluation contractor at mutually convenient points.
- The extent to which any tax reliefs or expenditure credits are claimable or otherwise on the portion of your project expenditure that is fully funded by us may vary according to the interpretation of eligible expenses incurred, the grantee company tax position and/or other variables outside our control. You should seek advice from your professional adviser in this regard.
All Directors of funded companies will need to verify their identity on Yoti.
Appraisal
Appraisal Process
- Eligible companies are invited to submit readiness details after having read all information as outlined here.
- Invited applicants will be asked to complete a full submission for grant funding.
- Upon receiving your completed application, we will assess it and inform you of our decision in a timely manner. The assessment will ensure that all the basic eligibility criteria outlined in here have been met.
- Applications that do not meet all the eligibility requirements for funding will be rejected.
- We will conduct due diligence on all applications, including a review of your financial projections, a fraud check, and checks on the company’s directors. If your business is in debt to the Welsh Government, you may not be eligible for further funding. It is advisable to discuss this with us before applying.
- Successful applicants will receive a Grant Offer letter detailing the terms and conditions of our grant schemes, including fund-specific details.
- Upon receipt, applicants should review, sign, and promptly return the letter to us if they are in agreement with the outlined terms and conditions.
Approval
- All assessed proposals will be submitted via the UKGTF grant application platform.
- Applicants will be informed of the final decision and offer letters will be issued to successful applicants.
Publicity
All successful applications will need to:
- agree to be included on any publicity, press releases and marketing material we produce in connection with the fund.
- There will also be an expectation that successful applicants will share relevant images and promotional materials with Creative Wales for our use as required.
Welsh Language
The Welsh Government is committed to promoting and growing the Welsh language. The creative industries play a key role in contributing to the Welsh Government’s priorities for the Welsh language and the target of a million Welsh speakers by 2050 as set out in Cymraeg 2050.
You must also include how the Welsh language will be included in your business and how you will contribute to the Welsh Government’s priorities for the Welsh language and the target of a million Welsh speakers by 2050 as set out in Cymraeg 2050.
It is not a requirement of this fund for projects to be delivered bilingually.
The Well-being of Future Generations (Wales) Act 2015
The objectives of the Act show how each public body will work to achieve the vision for Wales set out in the ‘well-being goals’. The seven well-being goals show the kind of Wales we want to see. The Act makes it clear that the listed public bodies must work to achieve all of the goals, not just one or two. Reference to and explanation as to how your business meets these goals will be important in the assessment of an application.
Your project is not being assessed against the Well Being of Future Generations Act. However, any outputs your business/projects demonstrate will have a positive impact in your application.
Privacy Notice
Welsh Government is the Data Controller for any information you provide. Full details of our privacy policy can be found here: Privacy Notice.
Please confirm in the relevant section of your application form that you are happy to proceed on this basis so that you can continue to receive support and advice from Welsh Government. Please ensure you have read, understood and accept the ‘Guidance Notes’ and ‘Privacy Notice’ before you start the application.
Grants Available
£50,000 to £150,000
FAQs
My studio has already received prototype funding from the UK Games Fund. Am I eligible for the Games Scale Up Fund for Wales?
Previous UK Games Fund funding doesn’t rule you out of a Games Scale Up Fund for Wales application. However, you’ll need to show how that previous project has contributed towards the company’s growth strategy; e.g. securing an early-access audience or attracting publisher interest. Your Fund application doesn’t have to be for the same project that received funding, as long as you can demonstrate the step change that arose as a result of it. For example, that could be how you’ve bolstered your development team with new hires and have more planned.
What form will the contract take?
We aim to have a ‘plain English’ offer letter that sets out the key terms without imposing any post-project repayment, revenue share or IP ownership liabilities. Payment of grant will be up-front. There will be obligations for you to return the entire grant to us during the project if you fail to meet any of our reporting and monitoring obligations or diverge from the agreed plan. Our well-trodden community contribution obligation will apply, requiring you to contribute company time to foundership and ecosystem development along the way, post- project. Where the award has been made according to claimed leverage (such as a future publisher advance) there may be specific conditions in that regard.
Are there any limits on the financials or timescales of the project?
While your total project budget may be more than any grant awarded as part of the Games Scale Up Fund for Wales, we’ll normally expect the funded portion of the work to last 6-12 months. Our financial year end is 31st March and whilst project spend can happen in a financial year following the year of award, we may require start dates to run parallel to our in-year funding allocations. Applicants are advised that submissions to the Games Scale Up Fund for Wales around year end may be affected accordingly.
What amount of grant should I apply for?
We’re aiming to have the minimum level of intervention, always less than half the budget, and applications with a lower rate of intervention will be prioritised.
Why is leverage important?
Leverage of third-party funds triggered by our grant will add to the feasibility of the information you share in your application. A commitment from an investor/publisher demonstrates market credibility in your application.
How can any grant awarded be spent?
Funding is only provided for Wales based PAYE employee and contractor costs for those engaged in hands-on content development. Directors loan accounts, certified accountants report, marketing, business development and community management costs are ineligible expenditure. You will be unable to claim for any tax credits on expenditure arising from any of our grant.
Does the Games Scale Up Fund for Wales cover porting and sequels?
We’re primarily seeking projects that are post-prototype development and reflect a journey to complete that particular game IP for the first time, rather than follow-on activities. That’s because we are keen to see transformational projects that ‘move the growth needle’ at studios. There may be special circumstances (e.g. revival of an old IP alongside renewed publisher interest and third-party investment) where a case otherwise can be made but our starting answer to this question is ‘not normally.’
Can my project include non-UK staff or contractors?
Securing our funding doesn’t rule this out but you must bear in mind that you will be subject to monitoring and post-project reporting to ensure there is no cross-subsidy arising from our funds. For example, the post-project certified report will require Wales-based PAYE and contractor invoice records fully reconciled with bank transactions for those work elements funded by our grant.
How long before the funding opportunity ends?
The deadline for registration of application readiness details is Monday 16th December. However, this situation is subject to change and high demand could lead us to closing for applications much earlier. We suggest that you get your application together as early as possible but use your time wisely to refine your pitch for funding, ensuring all relevant information is present and correct.
What frequency and level of reporting and monitoring should we expect?
You’ll be required to submit monthly progress reports that indicate progress with the work and spend against predictions. This will include periodic update videos and financial summaries. We’ll also be interested in the growth trajectory of the company and how the founder/s is/are gearing up for the projected scale of activity. You’ll be required to submit a closing financial report certified by a chartered accountant, with the project expenditure set in the context of whole company finances, along with an impact survey. This project is being monitored in real-time. You may be asked to join an interview at a convenient time.
What are state subsidies and why should I be aware of the limit mentioned?
Only the following types of low value subsidies are included in the £315,000 limit: (i) MFA; (ii) SPEI (services of public economic interest); (iii) aid given under the EU State aid de minimis regulations either before the end of the implementation period of 31 December 2020 or after this date if by virtue of the Northern Ireland Protocol; and (iv) subsidies given as small amounts of financial assistance (SAFA) under Articles 364(4) or 365(3) of the UK-EU Trade and Cooperation Agreement after the end of the implementation period but prior to this section of the Act coming into effect. A company may have received subsidies under a subsidy control scheme (either a new one which has been assessed against the principles or a legacy scheme) which would not fall into one of these categories so would not count towards the £315,000 limit.
Read everything carefully?
Eligible applicants are now welcome to begin their application journey.
Please contact us directly contentfund@ukgamesfund.com for the information supplied above to be shared in Welsh.