Innovation that's bold, brash and in your face

I almost knocked my coffee over when I read this: "Brash Entertainment, a start-up game developer that plans to focus on games based on licensed film, TV and music properties, announced on Monday that it has raised $400 million in its first round of financing, led by ABRY Partners."

Whatever happened to bootstrapping a company? After sinking $400 million into a company that has yet to create a single product, investors will likely be asked to ante up another hundred million dollars or two before the company ever turns a profit. Isn't there a better way of spending half a billion dollars?

True, the Los Angeles-based video gaming company has put together an all-star roster of talent, including COO Nicholas Longano, who previously developed the Massive Incorporated in-game ad network, and former Activision CFO Bill Chardavoyne. True, the company has scads of video games in the developmental pipeline, some of them based on popular cinema releases. But $400 million?

That just seems like an awfully big bet on the notoriously fickle tastes of adolescent video gamers.

[image: Brash Entertainment] 

Comments

[Roger Anderson]

I agree - look how well the Amp'd mobile turned out. Same audience, but with more money.
It is however way cool to say you are in on this deal. Plays a lot better than "I am funding the flatulence deodorizing pad." (Flat-D, NO Joke, definitely not an in your face product.)

[Katie Konrath]

I would be very wary funding something so expensive without a guaranteed ROI. I think some people misunderstand creative risk-taking to be permission to be foolish with their money.

Hopefully it will turn out, but I'm still aghast at the high set-up cost.