Fig crowdfunding platform receives SEC approval

Unlike other crowdfunding platforms, Fig lets backers become investors and receive a profit.

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The U.S. Securities and Exchange Commission (SEC) granted approval to Fig for non-accredited investors. This means that unlike competing platforms such as Kickstarter, Fig grants you a financial stake in projects in return for your investments.

According to a report on Venture Beat, the SEC gave approval to Fig's Psychonauts 2 project. Anyone who backed the game at $1,000 per share or greater will earn cash once the game starts earning revenue.

"Enabling fans and communities to directly support and financially benefit from their favorite games is transformative to the publishing of interactive entertainment and beyond,” said Fig founder Justin Bailey. "Fig is committed to evolving video game publishing and crowdfunding in this direction that benefits fans, communities, and developers, and ultimately the making of great games."

Allowing backers to become investors has been a cornerstone of Fig since its inception last summer. That makes receiving SEC approval something of a formality, but an important one. Official recognition puts backers' minds at rest that Fig isn't a scam, an important point to make as Fig attempts to broaden its reach potential backers more familiar with popular crowdfunding platforms like Kickstarter and Indiegogo.

More importantly, Fig holds enormous potential for game developers. The knowledge that profit can be earned by helping to fund a game could be a powerful motivator to attract attention from affluent backers.

Justin Bailey echoed that sentiment in an interview with Shacknews concerning the state of crowdfunding. "We think that if crowdfunding evolves and has investment, and then we go through one cycle and prove it’s viable with people we can pursue those bigger budgets."

Long Reads Editor

From The Chatty

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    October 3, 2016 4:44 PM

    David Craddock posted a new article, Fig crowdfunding platform receives SEC approval

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      October 3, 2016 5:56 PM

      This could be interesting. I wonder how disclosure of financials is going to work out under the scrutiny of internet crusader.

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      October 3, 2016 7:08 PM

      Wonder what the average return on these is going to be?

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        October 3, 2016 7:21 PM

        NM, there's a good breakdown on the site.

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          October 4, 2016 6:04 AM

          linky?

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            October 4, 2016 6:06 AM

            nm found it. I didnt understand how this would work but now that i see they are publishing the game it makes way more sense

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        October 4, 2016 8:31 AM

        0.0

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      October 3, 2016 7:26 PM

      I am excited about this for wl3

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      October 3, 2016 7:35 PM

      I would've shorted the fuck out of No Man's Sky.

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      October 3, 2016 9:24 PM

      Wish we could have done this to Star Citizen so we could reign in Chris Roberts, instead of the current perpetual feature creep which is resulting in constant delays, among other things such as engine changes. That, and it would prevent the current type of game, which I dare say is going to be pay to win because people are literally buying top end ships that they'll start off with...with lifetime insurance to top it off so they have minimal risk if their ship blows up. How the hell am I supposed to survive with the wimpy starter ship when someone else paid an extra $15 for that hornet, etc.?

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        October 3, 2016 9:25 PM

        And yes, I'm a backer, and part of Shackfleet, but I'm concerned this is now more or less a pay to win game...I don't see how it can't be at this point sadly.

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        October 3, 2016 11:39 PM

        I've been out of the loop on Star Citizen and really had no idea what it had morphed into until I read Kotaku UK's series of articles on it. Absolutely captivating stories that made my jaw drop over how out of control the project has gotten and how fiercely loyal the fanbase is despite it.

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        October 4, 2016 2:18 AM

        Things are really ramping up with Star Citizen, actually. Alpha 3 will be out soon, and i think it'll really drop some jaws.

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        October 4, 2016 5:57 AM

        Once a year I check if my login still works and then I forget about this game again. I have no idea what's going on with it and don't care until it's finished. Also, I no longer have a computer to run it. Best investment ever.

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        October 4, 2016 7:02 AM

        you do realize these are non-voting type shares, yes? all you do is earn - you dont have much control over the company or game.

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      October 3, 2016 9:25 PM

      i got 5k for astroneer eonix where u at

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      October 4, 2016 5:23 AM

      Lol, like people that do crowd funding want that when they've been used to getting free money

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        October 4, 2016 5:54 AM

        Different horses for different courses. I can easily see a dev preferring to handle a smaller number of investors than having to deal with a huge crowd that is baying for blood.

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        October 4, 2016 7:05 AM

        On the other side of the coin, complete creative control with even larger budgets is pretty appealing too.