The story
Bug-Byte was founded by Tony Baden and Tony Milner, two Oxford chemistry graduates. In 1981 they paid £75 for The Damsel and the Beast for the ZX81, the first game produced by Don Priestley, a former teacher who had learned programming from a night school course. Priestley produced two further games considered to be classic ZX81 titles, Dictator and Mazogs, before becoming a director of rival publisher DK'Tronics.
From Wikipedia’s article on Bug-Byte, shared under CC BY-SA 4.0.4