Remember the issue with Skullgirls or Glassup, how despite having successfully passed the fundraising target on Indiegogo, PayPal would freeze their funds because of reasons? Well, now that Yatagarasu: Attack on Cataclysm has been wildly successful, they are doing it again. According to the devs:
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. 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.
We appreciate irony as much as the next person, but PayPal refusing to provide funds legitimately raised to complete a game until after the game is released isn’t just beyond ridiculous – it potentially derails the game development. To add insult to injury, 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.
As someone who is also considering trying to launch a crowdfunding campaign (for a non-game business, but still) these reports are making me a little nervous. Raise too much money and Paypal will take their 4% cut, then freeze half or all of your funds until they feel like letting go.
In the meantime, as someone who kicked in a few bucks for this campaign, I hope that enough response will make them loosen their grip, or that Nyu Media can find an alternative to PayPal if the worst happens.