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

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.