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Crowdfunding and Investing

Archives for June 2016

Fig’s Transfer Agent and Updated SEC Filing

We’ve been busy over the last few months putting a bunch of key components in place for our journey of bringing the first video game investment opportunities for non-accredited investors, aka, fans like you.

So here’s the scoop. First, Fig is partnering with FundAmerica, a leading crowdfunding technology company, to provide back-end services for our online platform Fig.co. In addition, Fig has also engaged FundAmerica, through its FundAmerica Stock Transfer, LLC, as its SEC-registered transfer agent and registrant for Fig’s Game Shares, including our Fig Game Shares — PSY2. As our transfer agent, FundAmerica will keep track of who owns Fig Game Shares and help manage other details of stock ownership.

When Fig conducts its offerings, investors will be able to reserve and complete their investments entirely online, starting with Fig Game Shares for Psychonauts 2 (PSY2). Below is the page investors will see when they are directed to our site to buy their Fig Game Shares — PSY2:

Invest Flow

As you can see from the screenshot, we’re aiming to make it as easy as 1-2-3.

Second, we’re updating our filing with the SEC. The filing describes a number of important changes to our structure. Here’s an overview of some of the key points:

  1. Streamlined Structure — Our prior structure called for creating an individual Limited Liability Corporation (LLC) for each game co-published by Fig. Now, proceeds from the sale of Game Shares for multiple projects will go into the working capital of Fig, which will manage the distribution of funds to developers as part of our publishing business through development advances. For a quick visual of the investment flow, check out the chart below.
  2. Developer Milestones — Instead of giving developers their development advance at the start of the project in one lump sum, we’ll be parsing payments based on the completion of development milestones. Investors will also get updates during development. Coming from a development background ourselves, we feel this creates greater accountability and transparency for all involved.
  3. Fig Game Shares Track Specific Games — Even though proceeds from the sale of Fig Game Shares are contributed to Fig directly, the dividends investors receive will still be based on the revenue generated from sales of the specific title that their Fig Game Shares track, minus the developer’s royalties, publishing expenses and Fig’s Service Fee and revenue share.

It’s important to note that Fig Game Shares are just one potential source of funding for developing a game. With Psychonauts 2, for example, developer Double Fine has already collected money from the rewards-based crowdfunding campaign it successfully conducted in January on our Fig.co platform. We’ve also already collected Fig Game Share investments from accredited investors. Double Fine also has its own money it’s committed to the cause.

The next step in our journey is confirming and collecting on the reservations made by non-accredited investors during the Psychonauts 2 campaign. This is where we’re heading with the updated SEC filing that’s being submitted today.

Infographic

The reason why it’s so important to sweat the fine print is that the Fig model has never been done before. We’re building this to last, and to help evolve crowdfunding, so that fans have an opportunity to invest in us and receive a return from a successful game. So we need to get it right — for investors and developers.

If we succeed, Fig will be the only place where fans can buy a brand new type of security, one that’s tied to a game’s revenue, rather than the performance of an entire company. This has a couple of advantages over buying traditional equity in a startup company. First, investors don’t have to wait for a studio to be acquired to cash out, which is in itself a very rare occurrence in games. With Fig’s Game Shares, they should begin to see dividends within a few months after a game is developed and ships. Second, investor dividends are based on sales, rather than profit – this further helps to align investors’ interests with that of the developers in working efficiently to balance development cost with the final quality of the game. (Of course there are risks, too. Please review our latest offering circular for all our information.)

While it’s taken us several months longer than we anticipated to get you these details, we felt it was time well spent. Our mission is to build a vibrant, sustainable game ecosystem of fans, investors and developers that will last for years to come. That means we need to make sure the terms we set now with our Fig Game Shares and the PSY2 offering provide a solid foundation for the future.

We hope you agree!

Justin Bailey
CEO Fig

LEGAL LEGEND: An offering statement relating to our securities has been filed with the Securities and Exchange Commission but has not yet become qualified. These securities may not be sold nor may offers be accepted prior to the time the offering statement becomes qualified. You may obtain a copy of the most recent version of the preliminary offering circular by clicking on the following link: https://www.sec.gov/cgi-bin/browse-edgar?company=fig+publishing&owner=exclude&action=getcompany.

No money or other consideration is being solicited in connection with this information, and if sent in response, will not be accepted. No offer to buy securities can be accepted and no part of the purchase price can be received until an offering statement on Form 1-A is qualified pursuant to Regulation A of the Securities Act of 1933, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person’s indication of interest involves no obligation or commitment of any kind. No offer to sell any securities, and no solicitation of an offer to buy any securities, is being made in any jurisdiction in which such offer, sale or solicitation would not be permitted by law.