Thanks to new rules adopted by the Securities and Exchange Commission, the next campaign on video game crowdfunding platform Fig will let U.S. fans invest in a game and get a cut of any potential profits.
Thanks to new rules adopted by the Securities and Exchange Commission (SEC), the next campaign on video game crowdfunding platform Fig will let fans invest in a game and get a cut of any potential profits.
Fig is using Regulation A+ of the JOBS Act, which states that business can raise up to $50 million in capital from the general public online, to fund game development in exchange for publishing rights and providing the opportunity to invest.
December's Fig campaign will mark the first time that unaccredited investors in the U.S. will be able to invest in the development and publishing of a video game. The model had been previously available as a funding option for games in European countries, namely through Gambitious.
Although Fig previously allowed investment from accredited investors, that is, those on a minimum salary of $200,000 or with a net worth of at least $1 million, the new filing means anyone looking to invest can do so.
The minimum investment for Fig's upcoming campaign is $1,000, although that baseline will change with each campaign, while the maximum is $10,000.
Since the SEC review of Fig's filing will take time, the company will be accepting non-binding reservations from fans looking to invest, and has set aside $1 million worth of shares.
"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," said Fig CEO, Justin Bailey.
"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."
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