Title: Explaining the success of a young gaming start-up: a case study of Warhorse Studios

Authors: Michal Novák; Pavel Svačina

Addresses: Department of Corporate Finance, Faculty of Finance and Accounting, Prague University of Economics and Business, W. Churchill Sq. 1938/4, 130 67 Prague 3 – Žižkov, Czech Republic ' Department of Corporate Finance, Faculty of Finance and Accounting, Prague University of Economics and Business, W. Churchill Sq. 1938/4, 130 67 Prague 3 – Žižkov, Czech Republic

Abstract: The survival of early-stage companies is uncertain. Their survival and success are often linked to obtaining a substantial financial investment. This in-depth case study examines how and why an early-stage start-up from the video game industry obtains investment from an independent equity investor and offers deeper and more comprehensive insights into the success mechanism of gaming start-ups. The study: 1) generally confirms the previous findings that certain theoretical factors increase the likelihood of success; 2) argues that accumulating these factors, rather than their presence, is essential for a start-up to be substantially funded; 3) shows that the expected market response is crucial and significantly outweighs the other factors; 4) conceptualise the reasons for start-ups' success as a reduction of two main types of risk - development risk and sales risk; 5) confirms the catalytic role of crowdfunding in obtaining significant equity funding.

Keywords: early stage; start-up; success; video game industry; venture capital; investment decision-making; case study; qualitative factors; risk perception; crowdfunding; entrepreneurship.

DOI: 10.1504/IJEV.2023.133461

International Journal of Entrepreneurial Venturing, 2023 Vol.15 No.4, pp.346 - 380

Received: 22 May 2022
Accepted: 02 May 2023
Published online: 15 Sep 2023 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article