This Video Game Crowdfunding Platform Is Doing Something Totally New
Fans "should all have an opportunity to participate financially. Now they can."
The next campaign on newly launched video game crowdfunding platform Fig will support unaccredited investment, delivering on its initial promise and marking a first in the history of games. Basically what this means is fans can actually have a financial stake in a game's success. Investment isn't the only option, however, as Fig will continue to offer more traditional, Kickstarter-style rewards-based backing, too.
Fig isn't saying what its next campaign will be, only that it will launch in "early December." The new crowdfunding site launched in August and its first game, Outer Wilds, was a success. However, the next game, a free-to-play PC game from 5th Cell, came up well short of its target, becoming Fig's first failure.
The option for unaccredited investors to buy shares is made possible through a the SEC's recent crowdfunding decision, Regulation A+ of the JOBS Act. This gives unaccredited investors the opportunity to participate in the funding of a game's development and in turn potentially share in its success.
Before this, Fig only allowed investment from accredited investors.
There are some stipulations on new campaign, however. People cannot invest more than 10 percent of their annual net income or net worth. In addition, contributors must invest at least $1,000, but no more than $10,000. The minimum value will vary with every campaign that Fig runs.
"We believe that fans, in addition to having the opportunity to participate in the rewards-only tiers, should also have the opportunity to buy shares and participate in the financial success of a title," Fig CEO Justin Bailey said in a statement. "This is important because we don't feel that there should be a class distinction between fans and investors. Our belief is that fans and investors are one in the same--they are individuals who lend financial support to make a project possible, and they should all have an opportunity to participate financially. Now they can."
Fig also noted that the SEC's review of the company's filing "will take time." But in the interim, Fig said it will accept "non-binding reservations" from unaccredited investors for up to $1 million in shares that are being set aside pending the decision.
We'll have all the details on Fig's next campaign in December. Unlike Kickstarter, Fig only offers one campaign at a time.
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