This past week marked the close of the second cohort of DMG’s Damage Labs Accelerator, a groundbreaking programme dedicated to reshaping the future of game development. Launched in June 2022 and culminating in two vibrant, industry-facing pitch events in the first week of February 2023, the accelerator showcased the remarkable potential of emerging studios led by marginalised creators. Adaora Ogbue, Founder and Principal of Venture Catalyst, LLC, had the privilege to work alongside these studios as an expert instructor, supporting their journey toward sustainable business growth and investment readiness.
Damage Labs was launched by DMG (formerly Dames Making Games), a Toronto-based non-profit founded in 2012 with a mission to eliminate the barriers to starting and sustaining game studios owned and led by marginalised creators. Since its inception, DMG has worked tirelessly to support underrepresented developers through free educational workshops, skills-based training, community-driven project support, access to co-working space, mentorship opportunities, and collaborative partnerships. Their work continues to evolve as the game industry itself undergoes dramatic upheaval.
Now in its second cohort, the Damage Labs Accelerator has built meaningfully on the foundation set by its inaugural 2020–2021 programme. While that first edition introduced foundational topics in social finance, business structuring, and product development, the 2022–2023 cohort benefited from an even more robust and refined curriculum. This iteration expanded into deeper and more nuanced areas, including:
- Impact strategy and results chain development, helping studios to articulate how their games would make meaningful change;
- Legal and governance structures, unpacking how business entity types affect control and accountability;
- Operational planning, from people management to business development strategy;
- Product commercialisation, focusing on IP protection, iteration, and monetisation techniques;
- And most crucially, investment readiness, equipping founders with the financial acumen to understand accounting, develop forecasts, and engage confidently with funders.
This final piece—investment readiness—was where Venture Catalyst, LLC was proud to contribute, by designing and delivering a tailored curriculum that demystified the world of finance for early-stage, pre-revenue studios. Through both group workshops and one-on-one coaching, participants were urged to tackle the basics of financial accounting and build accessible financial models, while being challenged to confront and reframe their relationship with capital. This final piece is particularly important in a sector that often presents funding as a gatekeeping mechanism rather than an enabling tool.
For many marginalised game creators, seeking funding can feel like navigating a system which is stacked against them. As Damage Labs aptly noted, “[t]he industry – and existing funding infrastructure – churns creators through production cycles, betting on hit titles… This means that marginalised creators are less likely to be in a position to start or sustain a small studio business.”
In recent years, large-scale acquisitions and mass layoffs have further concentrated power in the hands of a few major studios and publishers. As the global games industry undergoes a correction from pandemic-era highs, studios now face declining player counts and shrinking investor confidence, creating a precarious environment for independent creators.
The industry – and existing funding infrastructure – churns creators through production cycles, betting on hit titles… This means that marginalised creators are less likely to be in a position to start or sustain a small studio business.
And yet, at the recent pitch nights, there was room for optimism. The studios in this second cohort presented bold, inventive, and inspired visions for games that reflected not only their creative brilliance, but also their communities, values, and long-term goals. Through their pitches, these founders declared their intent to build inclusive, sustainable studios that make space for new audiences and new stories. From narrative-driven adventures to experimental mechanics and genre-blending innovations, each team left a powerful impression on programme organisers, instructors, and fellow participants.
Their ability to balance artistic vision with a growing understanding of sustainable business practices is a testament to both the founders’ talent and the intentional design of the Damage Labs accelerator. Damage Labs is enabling video game entrepreneurs to push the boundaries of a rapidly-expanding industry.
Venture Catalyst, LLC believes deeply in the power of mission-aligned capital and the importance of tailored support for early-stage start-up founders. This cohort proved that with the right tools, networks, and encouragement, marginalised creators can reshape the future of video games.
Congratulations to every studio that took part in this journey as they embark on their quest for continued growth. Damage Labs has provided them with solid footing to attract aligned investment and to thrive as financially sustainable, impact-driven businesses. The road ahead is challenging, but if this cohort is any indication, they are already on the right path.