Quote:
Originally Posted by Champion_Standing
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What part of bad investment is so hard for you to understand? Giving this moron any money to make a game expecting to make a return on it is a horrible fucking idea. I don't care if you are talking about him getting the money from Grandma, a publisher, or a venture capitalist firm, its all a bad fucking investment.
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It's not a pinky promise and its not "giving him money to make a game". It's loaning him $340K so that he can get a free $460K so that he can immediately (or as close to it as possible) return to you your $340K + a nice chunk of the $460K.
Rather he uses the leftovers to make a game or rather he spends it all on Taco Bell, you don't give a fuck. You have some sort of an agreement with some sort of personal guaranty that you feel okay about. And that agreement says you get paid first.
Yes there's risk, but the risk isn't upon the success of the game. The risk is rather he defaults and doesn't pay you back immediately once he gets his money from kickstart.
For the right margin, and depending on appetite for risk, it's a sound investment.