TIGA welcomes UK’s success in raising venture capital, but games developers need more support to access finance

By January 16, 2020 Press Releases

TIGA, the trade association representing the video games industry, has welcomed TechNation’s report showing that the UK technology sector secured £10.1 billion in 2019, but emphasised that access to finance remains a key challenge for many UK games developers.

TIGA’s recent Business Opinion Survey demonstrates that access to finance is the most common obstacle facing UK video games developers. To address this challenge, the UK Government should retain and potentially enhance Video Games Tax Relief (VGTR) and introduce TIGA’s proposed Video Games Investment Fund.

VGTR reduces the cost of games development and incentivises investment. TIGA’s research indicates that between 2019 and 2023, Video Games Tax Relief is predicted to encourage £501 million in new investment by games development companies and to create over 3,000 new development jobs in the industry.[1]

The Video Games Investment Fund would make grants or loans available to games businesses on a matched funding basis. This would provide a healthy return on investment, and by 2023 would encourage games companies to invest an additional £200million in development expenditure.[2]

Dr Richard Wilson, CEO of TIGA, said:

“The findings from the TechNation report showing the UK technology sector’s success in attracting venture capital is excellent news. However access to finance is the most common challenge for many UK video games businesses. The Government should examine the case for TIGA’s Video Games Investment Fund to support the long-term growth of the video games industry. This initiative, alongside the retention of Video Games Tax Relief, will allow the continued success and growth of the high technology video games industry.”

[1] TIGA 2019, Making Games in the UK Today

[2] TIGA 2018, Sustaining Success: A Video Games Investment Fund

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