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Crowdfunding and Investing

We’re SEC Qualified: Let the Games Begin!

I am excited to share with you that Fig Publishing Inc. has just been qualified by the U.S. Securities and Exchange Commission (SEC) to sell Fig Game Shares—PSY2 for Psychonauts 2.  

What does being qualified mean? Two things. First, it means that nonaccredited fans who reserved equity shares related to Double Fine’s Psychonauts 2 will now be able to complete their purchase of Fig Game Shares—PSY2. (We’ll reach out to those of you who placed reservations next week with instructions.)

Second, it means that as of now, Fig is the only crowdfunding publishing platform where non-accredited investors can earn a return based on a game’s sales.

This is a first for our industry. But with Fig Game Shares being the only investment of its type to pass through the SEC process under Title IV of the JOBS Act, it also has the potential to evolve publishing for all of entertainment and fundamentally change the narrative of crowdfunding. Until now, equity crowdfunding for games in the U.S. had been publicly available only to wealthy, accredited investors. Additionally, investors could only purchase equity that offered a return based on the financial performance of a company—not based on  the financial performance of a single game. No longer.

This qualification opens the door for Fig Game Shares, a brand new type of security, one that lets everyone invest in Fig, support the development and publishing of games, and financially benefit from the sales of their favorite games. With Fig Game Shares—PSY2 as a blueprint, we plan to create and qualify with the SEC new series of Fig Game Shares that pay returns based on the sales of additional games..

This week’s SEC qualification is a long-awaited milestone—both for our company and for our industry. It has taken us several months to get here. Part of the reason it has taken us so long is due to the ambitious nature and far reaching implications of our approach. Because Fig Game Shares are innovative in tying returns to a single game’s sales, we needed to work closely with the SEC to answer their questions and to make sure we considered all the ramifications, both to protect investors and facilitate the free flow of capital. After all, it’s not every day that a new type of security is born!

What makes me most excited about this announcement is that we can now move full steam ahead with our initial goal when we launched Fig — to create a community of fans, investors and independent developers, with Fig as publisher, to work together to bring about new, innovative games. We’re especially grateful to our community and to the amazing fans who participated in our campaign for Psychonauts 2.
Now, let’s go make some great games!

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 by clicking on the following link: https://www.sec.gov/Archives/edgar/data/1658966/000121390016017011/f1a1215a5_figpublishinng.htm, or by requesting a copy by phone at 415-689-5789 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.

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.