The newly launched video game crowdfunding platform, Fig, is changing the way crowdfunding can benefit the users who back projects: the site is becoming the first crowdfunding platform to support unaccredited investment.
Essentially, this means that backers will actually gain the ability to take an actual financial stake in a project’s success, not only supporting a project but getting the extra reward of a stake in its profits too. Fig is still committed to delivering more traditional rewards-backing such as Kickstarter or IndieGoGo, but it is interesting to see a company try something new.
Fig has had a rollercoaster since its launch back in August; although its first title Outer Wilds went on to be a success, the following free-to-play title by 5th Cell became the site’s first failure. Unlike Kickstarter or IndieGoGo, Fig only supports a single campaign at a time, possibly making it easier to manage this new style of investment.
Although the newest campaign set to launch on Fig won’t be revealed until December, the site has revealed the stipends for unaccredited investors. Backers cannot invest more than 10 percent of their annual net income, and contributions must be above $1000 but no more than $10,000 – The minimum value is said to vary with every single campaign launched by the crowdfunding platform.
In a statement from Fig’s CEO Justin Bailey, it was explained why Fig was taking this course. Bailey believes that ‘fans, in addition to having the opportunity to participate in rewards-only tiers, should also have the opportunity to buy shares and participate in the financial success of a title. This is important because we don’t feel that there should be a class distinction between fans and investors.”
Ultimately, this ability to accept investment from unaccredited users comes from the SEC’s crowdfunding decision, Regulation A+ of the JOBS Act. In the interim period whilst the SEC reviews Fig’s filing, the company is accepting “non-binding reservations” from potential unaccredited investors for up to $1 million in shares for their next title pending the decision from SEC.
For more information on how Fig works, head to their website here.