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Crowdfunding and Investing

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.

Cliff Bleszinski Invests in Fig!

Esteemed developer, industry supporter and all around great guy, Cliff Bleszinski has invested in Fig, pledging to help us bring ambitious new projects to life through equity and reward-based crowdfunding. We are super excited to welcome Cliff, a believer that Fig can help game makers find passionate supporters for their projects while retaining creative control.

Everyone knows his work from the Unreal and Gears of War series, and recently Boss Key’s debut title LawBreakers. But Cliff is also dedicated to helping the industry grow in healthy ways, for game projects of all sizes to get made and be successful.

As the only funding platform created by gamers for gamers that offers rewards and investment based funding, we are grateful for our investors and advisors who are leaders in the industry – amazing to have you be a part of the Fig family, Cliff!

Cliff’s news comes at an auspicious time; in just one day, the successful campaign for Consortium: The Tower will conclude its campaign having surpassed its goal of $300,000 in less than a week.

Backed by another celebrated industry vet, Dr. Greg Zeschuk, Consortium: The Tower is an awesome single player sci-fi simulation game by iDGi, where your actions don’t just matter in one game but carry over to the next installment in the trilogy. We thank the over 2,800 backers thus far and can’t wait to see the campaign through to the finish line!

Consortium: The Tower Launches on Fig

We here at Fig are excited to announce our latest crowdfunding campaign, for the new title from Interdimensional Games (iDGi) – Consortium: The Tower. It’s the sequel to the critically acclaimed 2014 title.

Consortium: The Tower is a first-person science fiction simulation set within the hyper-futuristic Churchill Tower in the heard of London, England, in the year 2042. Acting as Consortium Officer Bishop Six players re tasked with a hostage-rescue mission that quickly becomes something much more. Players can choose to fight, sneak, explore, or talk their way through an interactive story driven by their own actions and decisions.

After the game’s Kickstarter campaign didn’t manage to reach its campaign goal earlier this year, iDGi brought the project to Fig to give the game the potential to achieve wider exposure and garner more funds by posting rewards and investment campaigns to fund this project on Fig.co.

The campaigns for Consortium: The Tower are a great illustration of why independent developers should choose Fig for their fundraising campaigns. Like other crowdfunding platforms, Fig.co gives developers access to reward-based crowdfunding from fans. What’s more, starting with Consortium: The Tower, Fig has decided not to take any percentage of the money raised in the rewards-based crowdfunding campaign (some crowdfunding platforms charge a 5% transaction fee, and an additional 5% platform fee). After the credit-card processor takes out its fee, about 97.3% of these funds will go straight to the developer.

In addition to rewards-based crowdfunding platforms, Fig also gives developers access to equity crowdfunding from investors and game fans who want to participate in the game’s potential success by buying Game Shares™. This opens up a previously untapped new fundraising channel for the developer.

The lead investor in iDGi’s investment campaign is Dr. Greg Zeschuk. Developers will know “Dr. Z” as the co-founder of Bioware and developer of a multitude of seminal RPG hits like Baldur’s Gate, Mass Effect, and Dragon Age. Investors in this campaign will be investing alongside Dr Z, who will also be purchasing game shares with the same business terms.

For more details on how our crowdfunding platform works, check out our blog post on this topic. And if you have any questions, send us an email at invest@fig.co and we’ll explain any aspect of the process.

In regard to the potential securities offerings under Regulation A relating to the above, please note that (i) no money or other consideration is being solicited hereby, and if sent in response, will not be accepted, (ii) no sales will be made or commitments to purchase accepted until the offering statement for the potential offering is qualified by the U.S. Securities and Exchange Commission, (iii) any such offer may be withdrawn or revoked, without obligation or commitment of an kind, at any time before notice of its acceptance is given after the qualification date, and (iv) an indication of interest is non-binding and involves no obligation or commitment of any kind.

How Investing in Game Shares™ through Fig works

I thought it would be helpful to show how Game Shares pay dividends based on the potential success of a game. There are two phases: the fundraising phase and the future game sales phase. It all starts at the Fig.co website. We made a nice flow chart so you can see how it works, and it’s all explained below.

flowchart

The Fundraising Phase

You can back a project in two ways: making pledges and investing in Game Shares.

Pledges

The first is by making a pledge. This is just like rewards-based crowdfunding. You want to see the game happen, you want a copy of the game, and you want other rewards, so you make a pledge. If the project is successfully funded and the game is made, you receive the game plus any rewards you signed up for.

Your pledges go directly to the developer. Your pledge is made through Fig.co, through a credit card processor. They charge a transaction cost of about 2.7% of your pledge. Fig doesn’t charge any fees (like the 5% transaction fee and additional 5% platform fee some crowdfunding platforms charge) to the developer for your pledge. That means 97.3% of the money you pledge goes straight to the developer to help make the game.

Game Shares™

Reward crowdfunding can be lots of fun, but the success of many crowdfunded games has made a lot of people (including us) wonder: Why does it have to stop at rewards like a T-shirt or your name in a backers’ list? Why can’t gamers and backers share in a game’s success? That’s when we came up with the Game Share™. (We’re applying for a trademark, because we think it’s pretty cool.) This is an investment security you’ll be able to buy on Fig.co. Game Shares are designed to track the game’s sales receipts collected by Fig. When and if the game makes money through sales, Game Shares are designed to pay you dividends.

Fig generally uses 5% of the money it raises from the sale of Game Shares to help cover our publishing and offering costs. The remaining 95% goes to the developer as the development funds for the game.

Funding the developer

Once payment for the Game Shares has been collected, Fig pays this money to the developer in one lump sum. Why is this important?

Well, normally, a publisher pays a developer bit by bit, in “milestone payments” dependent on the developer passing periodic reviews. The developer passes the next review, and receives the next milestone payment. These reviews can take up to 40% of a developer’s time—that’s time spent on overhead, instead of making the game. With Fig, the developer gets the money all at once. They also don’t have to submit regular milestone reviews to receive that money, although we do have inspection rights (See Fig’s FAQ section on Fig.co). This means the developer can spend all of their time working on the game. (We know it sounds crazy, but that’s how we think it should work, and we think you’ll agree.)

Future Game Revenue Phase

Assuming the game is successfully published and starts to make money from sales, those sales start to be paid out to Fig, which in turn distributes the sales receipts to the developer and investors. For each game, Fig will set up a limited-liability company (LLC). This keeps everything nice and separate and self-contained for each game project. Fig manages this LLC and makes sure the investors get paid. That means the developer doesn’t have to make those payments, or take on the onerous accounting that goes along with them. Again, the developer can focus on making the game. (We know, it still sounds crazy.)

When the game sales receipts are collected by our LLC for the game, Fig takes 5% of this money to cover the cost of our ongoing services such as publishing, paying investors and maintaining regulatory compliance. Our contribution can also include distributing and paid marketing when the game launches, making us a co-publisher. The remaining money is divided between the investors and the developers, with the developers typically receiving the majority share (with a 2.5% distribution to Fig). This means our best interest is the same as that of the developer and investors—making the games as successful as possible!

This system has two benefits: You, the investor, are paid from the same pool of sales revenue as, and at equal priority to the developer. This also means the developer’s best interest is aligned with your best interest.

So, in Conclusion…

That’s pretty much it. By setting up an LLC for each game, we’re creating a system that is straightforward, transparent to both developers and investors, and fully aligns the interests of Fig, the developer and you – the investor! We’ve taken a lot of the time-consuming, expensive hassle of milestone payments, publisher reviews and investor payouts off of the developer’s plate, so they can focus on the job you want them to — making a great game!

Thanks,

Justin Bailey
CEO, Fig

Do you still have questions? Does any of this business jargon not make sense to you? Send us an email at invest@fig.co and we’ll explain any aspect of the investment process.

 

CONSORTIUM: The Tower is jumping to Fig

Interdimensional Games Will Enable Fans to Share in the Potential Success of the Game Through Equity Crowdfunding

SAN FRANCISCO, February 26, 2016 – Interdimensional Games (iDGi), makers of the 2014 hit title CONSORTIUM, have decided to take their fundraising efforts from Kickstarter to Fig for their sequel Consortium: The Tower.  The rewards and investment crowdfunding campaign will launch on March 22 and will be looking to secure $300,000 in rewards and equity funding.   

“We are excited about CONSORTIUM: The Tower being chosen for the Fig platform,” said Gregory MacMartin, CEO of Interdimensional Games.  “The Tower is our dream project with almost a decade of planning and R&D behind it, including our first game CONSORTIUM. The folks at Fig have recognized this, and by transitioning our campaign onto their platform Fig Publishing will be able to invite investors to join in realizing our project and participating in its potential success in the market.”  

CONSORTIUM: The Tower is a single-player, first person science fiction simulation game created using the Unreal 4 Engine, and is set almost entirely within the hyper-futuristic Churchill Tower, an immense skyscraper in the heart of London, England. The Tower begins on December 21st, 2042 within an alternate dimension on the brink of world peace. The Tower incorporates all of the core mechanics, interface systems, gear and dynamic fourth wall shattering concepts for an all new scope. What should have been a straightforward mission to rescue civilian hostages from terrorists turns into a global debacle involving a deeply rooted conspiracy where Consortium Officer Bishop Six will be forced to question his allegiances and the morality of meddling across the bounds of existence. Acting as Bishop Six, players can choose to fight, sneak, explore or talk their way through an interactive story driven by their own actions and decisions.   

CONSORTIUM: The Tower is the type of game that is perfect for Fig. Interdimensional Games understands that fans want the option for more than just a t-shirt and a copy of the game when they financially support a game’s development. They want the opportunity to play a bigger role in its development and share in its potential success,” said Justin Bailey, CEO of Fig. “Our goal at Fig is to be able to pave the way for a sustainable ecosystem through investment crowdfunding, and by giving developers the funds they need for development, and being a great game co-publisher for them, we can further help in the potential success of the game.”

Fig is the first and only platform that offers both rewards and investment-based crowdfunding for independent developers in the gaming space. As part of its service offerings, Fig has announced that going forward it will waive all fees for the rewards portion of their campaigns, starting with Consortium: The Tower.

Stay tuned for more updates on the Consortium: The Tower campaign in the coming weeks and visit www.Fig.co for more information.

# # #

About Interdimensional Games Inc (iDGi)
Driven to push the boundaries of videogaming, iDGi is a collection of highly creative and passionate individuals dedicated to advancing the art form of interactive storytelling through the creation of immersive first-person gaming experiences with a moral compass.   Their first title, CONSORTIUM, released in 2014, is the first game to use the iDGi-1 Interactive Storytelling Technology and is widely regarded as an extremely original and unique interactive experience.  With Consortium: The Tower, iDGi is aiming to apply the iDGi-1 tech to an experience with a large, open world sandbox environment, the colossal Churchill Tower.  For more information, visit thetowergame.com. 

About Fig
As the only funding platform created by gamers for gamers that offers rewards and investment based funding, Fig.co empowers developers and passionate fans alike to bring well-known franchises and undiscovered indie titles to market. The Fig.co company was founded by Justin Bailey, Freeman White, and Bob Ippolito and was established with help from a coalition of independent game developers including Brian Fargo, Feargus Urquhart, and Tim Schafer. Fig Publishing is an affiliate of the Fig.co company and was founded to give investors a way to support the development of games that Fig Publishing will publish. For more information, visit www.Fig.co and follow us on www.twitter.com/playfig and www.facebook.com/playfig. Interested in funding on Fig? Send your pitch to pitches@fig.co.      

IMPORTANT MESSAGE: In regard to any investments under Reg A of the Securities Act of 1933, no money or other consideration is being solicited here, and if sent in response, will not be accepted. No offer to buy any such securities can be accepted and no part of the purchase price can be received until the offering statement relating to the securities is qualified by the U.S. Securities and Exchange Commission, and any such offer to buy 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. An indication of interest involves no obligation or commitment of any kind.

FORWARD-LOOKING STATEMENTS: This communication contains forward-looking statements that involve a number of judgments, risks and uncertainties relating to Fig Publishing’s business, results, plans and prospects. Actual events or outcomes may differ materially from those described, for a number of reasons, including those discussed in the “Risk Factors” section of documents filed by Fig Publishing with the Securities and Exchange Commission (the SEC) and available to the public on the EDGAR portion of the SEC’s website at www.sec.gov . We do not undertake any obligation to update any forward-looking statements after the date they were made, whether as a result of new information, new events or otherwise, except as may be required under applicable laws.

Fig Publishing Inc. will be offering and selling Game Shares to accredited investors under Rule 506(c) of the rules of the US. Securities and Exchange Commission (the SEC), and will be taking reservations for Game Shares from unaccredited investors in a subsequent offering under Regulation A of the rules of the SEC. Investments in Game Shares will start at $250. Before Fig Publishing can collect on reservations in the Regulation A offering, the Regulation A offering must be qualified by the SEC. In order for this to happen, Fig Publishing must draft a detailed offering statement and gather other information in compliance with SEC rules, file the offering statement and supporting exhibits with the SEC, and revise the offering statement and exhibits to respond to one or more rounds of written comments and questions from the SEC. When the SEC has finished commenting, it will declare the offering qualified, and Fig Publishing will then re-confirm reservations, collect on the re-confirmed reservations and deliver Game Shares to the re-confirmed investors. It’s important to point out that this is a typical process for companies seeking to offer securities to unaccredited investors. During the process, reserved investors and anyone else will be able to view Fig Publishing’s latest public preliminary offering circular for the Game Shares on Fig.co and on the EDGAR portion of the SEC’s website at www.sec.gov.