Dames Making Games (DMG) Toronto’s Damage Labs Startup Studio pre-accelerator helps to provide long-term financial sustainability for marginalised creators in the video game industry. (Image Source: Damage Labs)

At Venture Catalyst, LLC, we’re privileged to support visionary fund managers and founder-focused programmes driving equity and innovation across industries. One standout initiative that exemplifies this mission is the groundbreaking Damage Labs Startup Studio pre-accelerator, launched last year by Dames Making Games (DMG) Toronto. Backed by the Canadian Women’s Foundation’s Investment Readiness Program, with funding from Employment & Social Development Canada, this six-month programme was more than an accelerator—it was a movement for systemic change in the video game industry.

Running from December 2020 to May 2021, Damage Labs’ Startup Studio was designed to create long-term financial sustainability for marginalized creators—those historically excluded or harmed by the dominant systems in gaming. Whether due to race, gender identity, sexual orientation, or socioeconomic background, these founders have faced structural barriers to both capital and creative autonomy. Damage Labs sought to help them to rewrite that story.

A New Blueprint for Inclusive Game Development

The inaugural cohort brought together 10 independent game studios from across Canada for 24 weeks of hands-on, value-driven learning. These studios received targeted instruction in areas like:

Social finance and alternative investment models
Cooperative and inclusive business structures
Product development cycles for independent games
Pitching to aligned investors and partners

What made the Damage Labs’ Startup Studio distinct was its approach to holistic and inclusive growth. Participants weren’t just learning to build viable businesses—they were learning to scale ethical, autonomous, and resilient studios. By emphasising cooperative ownership models and ethical labour practices, the programme directly challenged the status quo of extractive, investor-first funding norms in the gaming sector.

More importantly, the programme’s core emphasis on investment readiness ensured that participants didn’t just refine their pitches; they redefined their impact narratives—seeking capital from funders and investors who align with their values rather than compromising them. This paradigm shift lays the foundation for studios to scale sustainably, while staying true to their social missions.

Critical Support Amid a Global Crisis

Damage Labs’ impact was especially critical given the timing of its launch during the height of the COVID-19 pandemic. With the global economy in flux and the creative industries hit hard, many early-stage studios—particularly those led by marginalised founders—faced increasing uncertainty and shrinking capital access as traditional funding streams contracted. This made the barriers to entry even more daunting.

In this context, Damage Labs’ programme offered not only structured training but also a stabilising force during a period of volatility. By providing financial literacy, business design tools, and access to value-aligned capital strategies, its Startup Studio helped to ensure that these founders could survive—and thrive—in a post-pandemic game development landscape.

Mentorship Rooted in Impact and Expertise

Damage Labs mentoring FAQ — Damage Labs was bolstered by the contributions of 12 global mentors, ranging from successful game studio founders to legal experts and finance professionals. (Image Source: Damage Labs)

A diverse network of 12 global mentors and partners—including studio heads, legal professionals, and impact investors—played a critical role in supporting participants. Among them were prominent voices from Capybara Games, Glow Up Games, and Outer Loop Games.

Adaora Ogbue, Venture Catalyst’s Founder and Principal, was honoured to contribute by sharing insights in:

Basic accounting and financial management to strengthen operational transparency
Financial modelling and unit economics tailored for early-stage studios
Investment readiness and impact measurement strategies to attract mission-aligned capital
Strategic storytelling and investor pitching targeting social finance investors

She also led founders through real-world case studies, including a deep dive into a publicly-traded company in the Canadian video game industry, to bridge theory with actionable insights.

Looking Ahead: Building a New System from the Ground Up

The impact and success of Damage Labs’ Startup Studio pre-accelerator go far beyond its inaugural cohort, reflecting the confidence, clarity, and community which the participating founders can now carry forward. These game developers are not only equipped to raise capital, but also to reshape the terms under which that capital is accessed.

In a gaming industry often dominated by exploitative labor models and narrow definitions of success, Damage Labs offers something urgently needed: a vision of inclusive growth, collective ownership, and creative autonomy.

The studios that emerged from this programme aren’t just launching games—they’re launching a new vision for what the video game industry can be. And that, in every sense, is game-changing.