Issues a plenty for the developer of Yatagarasu Attack on Cataclysm! as Nyu Media was refused the remaining half of their Indiegogo funding.
Seon King, founder of Nyu Media has noted:
“The email from PayPal advises us that they have ‘reserved’ the funding and will release ‘up to 50% of the funds’ before Yatagarasu AoC is released and the rest only after they have verified copies of paid invoices.”
This funding was completed via the incredibly successful Indiegogo campaign which closed on August 11th, 2013, with over $118,243 raised for the indie title. Over 3500 people supported the 2D fighting title but their support could be a mute point as King warns,
“What’s more, they provide no option to discuss, stating we should ‘contact us closer to the release date beginning of next year’ to arrange release of the funds. To add insult to injury” commented a frustrated king, “not only do Nyu Media and the Yatagarasu developer team have rock solid track records, but we’ve already provided PayPal with documents providing the bona fides of Nyu Media, the developer, and the campaign.”
Paypal do not have a strong track record with independent budget titles, in April the game SkullGirls developed by Lab Zero Games was unable to pay staff after PayPal froze their funding as fans of the game could demand refunds from PayPal if they were not happy with the final project.
Likewise in 2011 Goldhawk interactive faced complications when they used the PayPal system to organize pre-orders of their title, Xenonauts.
However it has since been confirmed that the issue has been resolved between the two companies following these issues.
Paypal have responded in a statement;
“We have reached out to Nyu Media and the issue has been resolved. We want to reiterate that supporting these campaigns is an exciting new part of our business. We are working closely with industry-leaders like IndieGoGo and adapting our processes and policies to better serve the innovative companies that are relying on PayPal and crowd funding campaigns to grow their businesses.
We never want to get in the way of innovation, but as a global payments company we must ensure the payments flowing through our system around the world are in compliance with laws and regulations. We understand that the way in which we are complying to these rules can be frustrating in some cases and we’ve made significant changes in North America to adapt to the unique needs of crowd funding campaigns. We are currently working to roll these improvements out around the world.”
Do you think that companies such as PayPal should take more risk with Indie companies? Let us know what you think in the comments below.
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