[klik99]

This is a good question.

Publishers typically invest later in a project to help finish get it over the finish line. They used to invest earlier but over the years started investing later and later - as game engines got better and better, teams could do more with less funding so they stopped doing as much.

IMO VC entering the picture was a reaction to less early funding from publishers - it's filling a need for larger more ambitious projects.

[spacemarine1]

I see equity funding as useful starting funding.

Publishers are great for finishing funding once you know what your game is.