In case you missed it, Republic, one of the many crowdfunding platforms covered by KingsCrowd, acquired Fig this past week. As always, we at KingsCrowd are thrilled to announce any moves in the crowdfunding space!
Fig, a crowdfunding platform for video games, launched back in 2015. The platform supports crowdfunding for video game companies that publish games and sell related hardware. Crowdfunding campaigns allow fans and investors to discover new and exciting games that they can financially support. If these games generate sales, investors get a share of the revenues.
How does it work?
Regulation A+ allows non-accredited investors to partake in private investments, much in the same way as RegCF. Fig utilizes Reg A+ to create shares, which are then linked to licensing agreements between Fig and developers. In short, investors buy part of the licensing agreement with Fig Publishing.
These deals are essentially revenue share agreements. Most are not capped, meaning as long as there are sales, investors get a share of the revenue. The more sales, the more revenue that goes to investors. And this model has been very successful. Republic reports, “Since 2015, investors on Fig have successfully funded more than 40 games, and have been paid out an impressive $6.4 million so far.” To date, the platform has experienced 3 years of positive returns for investors. According to Republic, the goal is to pay investors at least three times the money they invest in each revenue-sharing deal.
All this comes at a time when many of us are stuck at home, looking for entertainment, which bodes well for the gaming industry. The gaming industry is expected to hit $79B globally by 2025 for the online sector. Fig gives you direct access to this fast-growing market sector.
Republic has six active raises on its site that include both hardware and software. The goal is to list 10-15 deals over the next year, featuring some indie developers and some mature developers with a track record of successful games under their belt.
This is a huge development in the crowdfunding space. Specifically, creating niche focuses within the broader Republic ecosystem can help bolster the quality of investments overall, while accelerating the total growth of online private market investing and potential returns for crowdfunding investors. Chuck Pettid, CEO of the Republic portal, explained that “having domain expertise in a viable investment class makes Republic’s investors the real winner.”
We will be sure to tune you into these latest deals in the coming days, weeks, and months. Look for this move to help solidify Republic’s position as one of the top leaders in online private market investing.
Congrats to our friends at Republic! We can’t wait to see where you take the company.
If you are interested in investing in any of the Fig x Republic offerings, you can check them out here.
About: Olivia Strobl
Olivia comes to KingsCrowd with a background in venture capital and technology. She spent time at Glasswing Ventures, an AI-focused venture fund in Boston, before joining the KingsCrowd team. There she helped develop machine learning algorithms for the opportunity qualification of preseed and seed-stage startup companies. Prior to her time at Glasswing, Olivia worked in a lab studying the neural correlates of attention. She holds a degree in Neuroscience from Wellesley College.