Fig is an investment crowdfunding platform dedicated exclusively to providing investment opportunities in the development and production of video games. While Fig does include rewards-based funding options similar to Kickstarter, the platform also offers a royalty investment option for some of its campaigns, allowing investors to capture a portion of future game sales in the form of dividends.
Fig was acquired by Republic (link to review) in April 2020. The platform will continue to operate, but will do so with the substantial benefits and synergies stemming from Republic’s infrastructure, financial backing and brand. More information on the acquisition and return data for Fig deals can be found here.
Fig's model sets itself apart by both providing game developers with a money to develop their new game, as well as assisting the developer with crafting a marketing and PR strategy to help drive sales (and investor returns). This model is preferable for developers for two reasons. First, funding through a royalty model lets developers maintain independence – a consideration of significance in a space where sacrifices must be made and control ceded if one is to work with established video game developer incumbents. Second, many of the individuals investing in the developers are also users of their games. By creating a well-aligned incentive structure with members of their core user demographic, developers are well-positioned to benefit from significant word-of-mouth marketing and valuable user feedback.
Fig's site features a robust set of informational materials provided to educate and introduce transparency into the investment process. While Fig is open to both accredited and non-accredited investors, the platform is likely best-suited for gaming enthusiasts who will also value the rewards-based component of the site and access to the games themselves. For those without expertise in the gaming space who are solely interested in the return profile of their investments, this is likely not the platform for you. That said, given the considerable growth of the gaming industry and Fig’s recent acquisition by Republic, we see the potential for the platform to evolve to a point where it offers compelling opportunities for investors solely focused on competitive financial returns.