Today, we’re announcing an increase in the minimum dividend rate of Fig Game Shares—PSY2 from 30% to 70%. The details are laid out in a supplement to our offering circular for Fig Game Shares—PSY2, filed earlier today with the Securities and Exchange Commission, which can be found here.
This may seem like a big change, but from our viewpoint, it’s actually not. And here’s why: since founding Fig, we have envisioned that equity crowdfunding should do two things — create a new way for independent developers to put their games into the hands of players, and give fans a way to financially participate in the success of the games they love. Fig exists primarily to facilitate these goals.
The way we’ve decided to apportion sales for Psychonauts 2 reflects this vision. The lion’s share of the game’s revenue will rightly go to the developer and investors, with Fig taking out our service fee and participating in a smaller way in revenue share.
The chart below, which is also included in the supplement, shows the potential dividends with the 70% dividend rate:
The table above makes assumptions, and is presented for illustrative purposes only. Although we believe the assumptions represent fair estimates, there can be no assurance that any one or more of these assumptions will in fact apply. The supplement lays out in more detail the assumptions that we make.
So, how did we go from a 30% minimum investor dividend to a 70% minimum? The short answer is that now we can.
Here’s a slightly longer answer with a little more background, in case you’re curious. We’ve always regarded the 30% as the rock-bottom of the range for what we want to pay out to investors. The figure was meant to be a floor, so that no matter what unforeseen circumstances occurred with the business, investors could rely on it.
In our offering circular for Fig Game Shares—PSY2 , we deliberately left the door open for increasing the investor dividend by saying that we would pay more than the minimum if business conditions permit. Now that Fig Game Shares—PSY2 have been in the market for several weeks, we have sufficient market data to issue a supplement and declare an increase the minimum dividend rate to 70%. In short, the market saw the 30% as a cap, rather than a minimum. To clarify our intent, we are moving the floor up to remove any confusion about our ultimate goals.
Our philosophy has always been to reward investor fans with as much of the revenue share that our business permits. Today, that means ramping up our minimum investor revenue share for Fig Game Shares—PSY2 to 70% (again, the 70% is still not a cap — it’s a minimum). We can go even higher, and we expect to do so if and when business conditions allow us to. Our model seeks to reward investors, because that’s how we can get people to invest and help us build a thriving ecosystem for independent games.
Of course, there’s no guarantee — for Fig or its investors. As with all investments, there are still risks, and we encourage you to read the risk factors in our offering circular for Fig Game Shares—PSY2.
We want to thank our investors for sticking with us through this process as we travel through some uncharted terrain. It’s been a thrilling experience, and we are grateful you are here with us for the journey.
If you have any questions about our dividend policy, or investing in Fig Game Shares in general, feel free to shoot me a message at firstname.lastname@example.org.
IMPORTANT MESSAGE: An offering statement relating to Fig Publishing, Inc.’s Fig Game Shares—PSY2 has been filed with the U.S. Securities and Exchange Commission and has been qualified. Prior to any investment in Fig Game Shares—PSY2, you should review a copy of the offering circular included in such offering statement, and a copy of the new supplement to that offering circular, or by requesting copies by phone at 415-689-5605 or by writing to Fig at 599 Third St., Suite 211, San Francisco, CA 94107. 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 applicable law.