A COMPUTER games company is attempting to raise £120,000 through a fund-raising website after high street banks refused support.
Yoxall-based Ironsun Studios may close unless it raises the cash through Kickstarter, a US firm which allows people to back projects with cash in exchange for rewards.
Ironsun’s founder and managing director, Paul Kelly, has resorted to Kickstarter after being refused help by Barclays, HSBC and Lloyds TSB after several requests – despite Government pressure to provide loans.
Mr Kelly said though his company only hoped to secure a £5,000 overdraft and £75,000 for running and marketing costs, the banks were only interested in loaning £250,000 or more, rebuffing Ironsun ‘with either lack of interest or unreasonable demands on personal assets as collateral’.
Despite being ‘hamstrung’, Ironsun has survived, using freelancers to meet staff requirements.
Now, however, the firm, which has a staff of seven, four overseas, is playing its own endgame.
“We have exhausted the financial resources of the backers we already had and are now in the sticky situation of having to give up a substantial part of the company to survive unless we get funding from something like Kickstarter,” said Mr Kelly.
“Backers who pledge money to Kickstarter projects do so because they admire the product or goal and want to be part of it.
“They do not receive a share but normally a gift or reward depending on the money they pledge.”
In the case of Ironsun’s project, Fathom, backers will receive rewards ranging from a copy of the finished game to a limited edition replica of a coat worn by its main character.
Details of the Fathom campaign, ending on March 29, are available at http://kck.st/ZJxGEo, while the game’s website is FathomAdventure.com
“We believe we can reach our goal and make a success story for a small UK start-up,” said Mr Kelly.