Krafton-backed Blue Ocean Games launches $30-million fund for indie game developers

Blue Ocean Games employs an investment model called SAIL which provides developers with investment at the concept stage, before the first playable build (Image generated by Meta AI)

Blue Ocean Games, an early-stage venture fund backed by South Korean gaming giant Krafton, has announced a $30 million fund to back indie game developers across the world, with focus on nurturing talent in India.

The fund aims to support over 100 indie developers over the next three years.

“There is a structural problem in the indie game industry worldwide where the gap between what investors fund, what developers dream of creating and what players crave has grown too wide,” said Damian Lee, founder and managing partner of Blue Ocean Games.

"We want to provide accessible pathways for developers of all backgrounds, whether they are self-taught creators with a unique vision, or small teams making their first or second game."

Lee added that the company is "particularly excited" about the immense creative potential and innovative concepts emerging from India, which possess both local relevance and global appeal.

SAIL investment model

Lee, who was previously working as the head of investments at Krafton, set up Blue Ocean Games in Toronto with the assistance of the Toronto Global and The Embassy of Canada to South Korea.

The fund employs an investment model called SAIL (structured agreement for indie launch), which provides developers with investment at the concept stage before the first playable build. It provides financing of $100,000 per developer, or $300,000 per team, disbursed over two years.

This financing is tied to objective, market-validation milestones rather than subjective progress checkpoints. The fund also offers a hybrid equity and revenue share agreement, which it says, balances developer control with investor returns. Developers keep the rights to their own intellectual property.

Beyond financing, Blue Ocean Games will also provide practical support including incorporation assistance, bookkeeping services, and mentorship from industry veterans, the firm stated.

Developers will work in cohorts, thereby creating a collaborative community that can share knowledge and resources. The firm said the inaugural fund is designed for solo developers or small teams with first-time founders but it plans to support larger, more experienced teams in the future through subsequent funds.

At the heart of the Blue Ocean Games’ talent discovery approach is "Rising Tide", an ongoing series of online competitions and challenges aimed at helping developers validate ideas, gain recognition, and move their projects forward, irrespective of whether or not they are seeking funding.

The first Rising Tide challenge is expected to start on May 1 in partnership with Global Game Jam, and is open to developers globally. Blue Ocean Games said it is hoping for strong participation from India, which could lead to the creation of a dedicated India track to spotlight emerging local talent.

“India is a powerhouse of creativity and technical skill, yet many brilliant ideas struggle to find early support. Blue Ocean Games introduces a forward-thinking investment model that gives indie developers critical financial backing at the earliest stages," Krafton India CEO Sean Hyunil Sohn said.

"By enabling creators to pursue bold ideas while retaining ownership and creative control, it lays the foundation for sustainable success."

Also Read: BGMI maker Krafton backs IMM Investment's maiden India fund as anchor investor

Krafton's India push

Krafton, the maker of the popular battle royale title Battlegrounds Mobile India (BGMI), has taken several steps to boost the country's game development ecosystem in recent years.

It operates an India-focused incubator, Krafton India Gaming Incubator, which recently launched its second cohort comprising six startups.

The incubator focuses on early-stage startups, including those at the concept or idea stage, as well as student teams and independent developers.

In March, Krafton acquired over a 75 percent stake in Nautilus Mobile, a Pune-based game development studio best known for developing the Real Cricket mobile game franchise, for Rs 118 crore.

In August 2023, the company pledged to invest $150 million in Indian gaming and interactive entertainment startups over the next two to three years. This brings its total commitment to the Indian market to about $290 million, making it one of the most prolific strategic investors in the country in recent years.

Over the years, Krafton has also released several games in India. These include Bullet Echo India, CookieRun India, Garuda Saga, Road To Valor: Empires, and Defense Darby, besides the flagship title BGMI.