#StartupsEverywhere Profile: Ben Kvalo, Founder & CEO, Midwest Games
This profile is part of #StartupsEverywhere, an ongoing series highlighting startup leaders in ecosystems across the country. This interview has been edited for length, content, and clarity.
Launching Great Games from Anywhere
The video game industry is concentrated in a handful of locations, leaving incredible talent in underserved areas frequently overlooked. Ben Kvalo started Midwest Games to change that narrative, supporting underrepresented game developers because increasing diversity in game development leads to better products and bigger markets. Ben recently joined us to talk about Midwest Games, the challenges of raising capital in the Midwest, the importance of small developers in maintaining a healthy video game ecosystem, and the potential benefits of AI for the industry.
Tell us about your background. What led you to founding Midwest Games?
I’m originally from Wisconsin and started my career in radio before moving into the video game industry. I worked at 2K in San Francisco, where I helped build their operations and bring games to market on platforms like Xbox and PlayStation. After nearly six years at 2K, I joined Blizzard and later moved to Netflix, where I led their marketing operations team for films and spearheaded the launch of Netflix’s gaming platform. Observing how the video game industry is concentrated in just a few states, I decided to build my publisher in an underserved area with the mission of supporting underrepresented developers in the industry.
What is the work you all are doing at Midwest Games?
We’re a video game publisher focused on creating opportunities for developers in areas that are not traditional hubs for video game development, such as the Midwest and other global regions. Underrepresented developers face several challenges, particularly the cycle of funding and hiring within the industry that tends to favor the same types of people in the same places, which neglects a vast pool of talent in underserved areas. We’re dedicated to breaking these traditional cycles and supporting developers of underserved regions. By including more diverse perspectives, we create more varied games, which broadens and enriches the video game industry as a whole.
What challenges have you faced raising capital in the Midwest?
Raising capital in the Midwest has presented unique challenges compared to the coasts, where there is a higher prevalence of wealth and a greater openness to investing in new sectors. In the Midwest, investors are more likely to have earned their wealth from traditional industries, and investments tend to flow where they’re familiar. This can lead to a risk-averse investment culture, where investors are more hesitant to invest in areas they’re not comfortable or experienced with, such as the video game industry.
To address this, part of our mission is educating investors about the significant opportunities within the gaming sector. In our early funding rounds, we’ve challenged these norms significantly by raising most of our capital in Wisconsin, relying heavily on local tax incentives that offer tax breaks for people investing in Wisconsin startups. This tax incentive reduces the risks for investors, so they’re more willing to make these sorts of bets.
Midwest Games is currently working with the Entertainment Software Association (ESA) to secure a 30 percent tax credit for video game companies in Wisconsin. These kinds of tax incentives, as well as a federal angel tax credit, would not only expand opportunities in the video game industry but also draw more investors to the region, creating a compounding effect on the local investment landscape.
What is the role of developers and platforms in maintaining a healthy video game ecosystem, especially in light of the industry’s complex reputation in policy discussions?
Everyone in the gaming ecosystem, from indie developers to giant publishers, plays a vital role in fostering a healthy environment for everyone who wants to play video games. We’re focused on bringing people from different backgrounds into the ecosystem as developers, which leads to games that more people want to play. We have to make sure the ecosystem is a place where those players want to be, where there isn’t abuse and harassment.
However, it would be dangerous to craft policy around the idea that developers can solve problematic user content on their own. If government regulations were to become too stringent, it would disproportionately impact small developers because they don’t have the time and infrastructure to build the needed content moderation tools. While there is a shared responsibility across the ecosystem—including among platforms, which also have a role to play and generally have more resources—the burden of content moderation should not fall solely on small developers.
How is the gaming industry being changed by AI?
Game developers have been working with AI for a long time, so it’s not entirely a new topic. The industry isn’t a monolith, so there’s some skepticism, but there’s also optimism. There’s a lot of excitement among small developers because AI enables them to achieve more with fewer resources. For example, AI will revolutionize anything content-related, because creators can quickly realize their vision without working with a concept artist for weeks. While some people are concerned about AI replacing jobs, there are many aspects of game development that AI can’t replace and a lot of ways that AI will enable smaller developers.
What are your goals for Midwest Games moving forward?
Looking ahead, our main focus is on expanding. We’re moving onto phase two of our company, aiming to invest more in indie developers and broaden our reach. In addition to Midwest Games, I’m on the board of the Wisconsin Games Alliance, a nonprofit that advocates for games in Wisconsin. As part of my role, I organize MDEV, an industry show that provides learning and networking opportunities for local game developers.
Ultimately, we’re striving to foster a more entrepreneurial spirit in the video game community. Many game developers don’t consider themselves entrepreneurs, but they are. We need to shift the investment strategy to support a broader range of game developers, spreading resources across the board rather than risking everything on single large bets. This approach not only diversifies the industry but also creates more opportunities for success across more places.
All of the information in this profile was accurate at the date and time of publication.
Engine works to ensure that policymakers look for insight from the startup ecosystem when they are considering programs and legislation that affect entrepreneurs. Together, our voice is louder and more effective. Many of our lawmakers do not have first-hand experience with the country's thriving startup ecosystem, so it’s our job to amplify that perspective. To nominate a person, company, or organization to be featured in our #StartupsEverywhere series, email advocacy@engine.is.
