Blue Ocean Games, a newly launched venture capital firm backed solely by Krafton, has introduced a $30 million fund aimed at supporting indie game developers in the early stages of their projects. The initiative is expected to support approximately 100 development teams over a three-year period. 

New $30 Million Fund

Damian Lee, founder and managing partner of Blue Ocean Games and the former head of investments at Krafton, stated in an interview with GamesBeat that the mission of the fund is to address longstanding challenges in early-stage game funding. According to Lee, there is a disconnect between what investors are willing to support, what developers aim to create, and what players are looking for. The fund seeks to address this misalignment by creating a structure where developer creativity and player demand can be aligned through community validation and reliable financial backing.

Blue Ocean Games New $30 Million Fund

Structured Agreement for Indie Launch

At the core of the fund is a new investment instrument called SAIL, which stands for Structured Agreement for Indie Launch. This model replaces the more common SAFE (Simple Agreement for Future Equity) approach often used in tech startups. SAIL is designed to provide funding at the concept stage, before a playable build is available. Developers can receive up to $100,000 individually, with teams eligible for up to $300,000, disbursed over two years.

Rather than relying on subjective development milestones, the fund emphasizes objective, market-based validation points to assess progress. The investment model also includes a hybrid of equity and revenue sharing, while ensuring developers retain full ownership of their intellectual property. In addition to financial investment, Blue Ocean Games offers practical support such as incorporation assistance, bookkeeping services, and mentorship from experienced industry professionals. Developers will be grouped into cohorts to encourage collaboration and knowledge-sharing.

Blue Ocean Games New $30 Million Fund

Rising Tide Competition to Identify New Talent

To help discover new talent and validate early-stage game ideas, Blue Ocean Games is launching the Rising Tide game challenge. The competition will begin on May 1, 2025, in partnership with Global Game Jam. Developers are invited to submit project concepts throughout May, with selected entries advancing through a community-driven evaluation process in June. Rather than requiring complete game builds, participants can present gameplay trailers that showcase their ideas.

According to Lee, this format allows developers to demonstrate the core appeal of their games without the resource burden of completing a prototype. Winning projects will receive expedited access to Blue Ocean Games’ funding process and a guaranteed interview. While participation in Rising Tide does not require applicants to seek funding, it offers an opportunity for creators to receive validation and potentially secure investment. The competition is intended to be a recurring event held several times per year, with the goal of identifying promising new developers and providing them with resources to develop their ideas further.

Blue Ocean Games New $30 Million Fund

Supporting Indie Developers (Devs)

The creation of Blue Ocean Games’ fund comes at a time when early-stage investment in game content has been declining, as many investors shift focus toward platforms and adjacent technologies. Lee described the timing as particularly appropriate, given recent layoffs across the game industry and the growing number of small, independent teams attempting to bring unique game concepts to life.

Many of these developers face significant financial risk and lack the resources to secure traditional funding, especially those creating original intellectual property without an established brand or track record. Lee emphasized that the fund is not aimed at generating billion-dollar “unicorn” valuations but is instead focused on supporting creators who are passionate about making specific types of games. This approach aims to create better alignment between investors and developers, addressing the misalignment often seen in venture-backed tech startups.

Blue Ocean Games New $30 Million Fund

Focus on Sustainable Ecosystem Building

Rather than operating as a traditional publisher, Blue Ocean Games intends to remain focused on building a sustainable ecosystem for early-stage game development. The fund’s name reflects its strategy of seeking out “blue ocean” opportunities—game concepts that face minimal competition but demonstrate market potential.

Based in Toronto, the fund was launched with support from Toronto Global and the Embassy of Canada to South Korea. The team consists of eight full-time members, each with specialized roles, including data science, mentorship, and external development support. The fund also plans to provide shared services such as audio development resources to support smaller teams that may lack in-house capabilities.

Blue Ocean Games New $30 Million Fund

Positioning Indie Devs for Long-Term Success

Blue Ocean Games hopes to position its portfolio developers for long-term success, whether through eventual commercial release or by strengthening their industry resumes. By offering smaller, targeted investments to a larger number of teams, the fund aims to mitigate risk while expanding opportunities for creative, underrepresented voices in the game development space. Lee noted that many developers backed by the fund may not have otherwise had access to funding.

He believes this new approach could serve as a model for future investment in the game industry, especially if the Rising Tide challenge proves effective as a scalable method for discovering and validating new talent. Developers interested in participating in the Rising Tide challenge or learning more about Blue Ocean Games’ funding opportunities are encouraged to visit the company’s official website.