According to a post on Reddit, Notch explains he underestimated the amount of money necessary to fund the title.
"I somewhat naively thought ‘a couple of million' was two million," he wrote, referring to the amount of money necessary to get the game off of the ground. "I had no doubt in my mind that a Psychonauts 2 would earn that money back easily. Turns out they wanted 18 million dollars, haha. I don't have the time at the moment to even try to get educated enough to make an 18 million dollar deal. Perhaps in some distant future when I'm no longer trying to make games, I could get into angel investing. I've made one private investment into a game so far, at $100K, and it's frankly a lot more work than I thought."
Persson opened up about his interest in funding the project last year, sending a tweet to Double Fine's Tim Schafer stating simply: "Let's make Psychonauts 2 happen." This followed the publishing of a blog post written in 2011 that explained his interest in investing in the project.
"All I know is that if the numbers work out and if they still want to do it and if they don't decide to self-fund a sequel by doing more crowdfunding (which is honestly what I would've done if I were them), I would be most interested in doing this type of investment," he wrote.
Double Fine has since stated it is "excited about the prospect of making a sequel to Psychonauts, but we're currently focused on making our Kickstarter game and haven't been able to budget it out. Once we get around to it, we'll likely explore alternative funding methods that will require multiple sources to make it a reality."