Last April in a significant strategic move, Republic acquired Fig – a crowdfunding platform for video games that issued securities under Reg A+.
Republic is a leading investment crowdfunding platform in the US that continues to add new verticals and products as it builds out its online capital formation ecosystem. Gaming has always been a hot market – even more so during the time of COVID.
FIG has been a unique investment platform leveraging Reg A+, a securities exemption that enables issuers to raise up to $50 million from both accredited and non-accredited investors, to generate some pretty decent returns. In a blog post not too long ago, FIG said the average return across listed Fig Game Shares was about 118% (or an 18% return on investment).
This past week, FIG, under the ownership of Republic, saw a Reg A+ offering qualified by the Securities and Exchange Commission (SEC) that is the first of its kind.
The Reg A+ offering is for a game console that generates returns for investors not only on the sale of the platform but for every single game. The specific offering is called “Fig Gaming Shares – Amico” (FGS – Amico). A separate Reg D offering has already raised over $1.2 million, according to the securities filing.
According to the Fig Offering Circular, FIG is seeking up to $13.763 million in a securities offering at a price of $1000 a share.
Fig notes that as of March 31, 2020, it has attracted over 120,000 investors who have either invested or purchased offerings on its platform garnering a 68% success rate – which is pretty good. From January 1, 2016, through April 30, 2020, Fig hosted three of the top ten successful crowdfunding campaigns in support of video game development, measured in terms of aggregate rewards pledged and investments reserved or made, as applicable, on the major platforms for video game crowdfunding. Since 2016, Fig has generated approximately $6,000,000 in revenue, consisting almost entirely of our shares of revenue from game sales to consumers and the gains they made selling our rights to publish certain games to other publishers, such as Microsoft.
As for the specific offering, Fig received $7 million in indications of interest and thus appears to be well-positioned to raise all or a good amount of its funding goal.
Fig says it will pay a minimum of 85% of its revenue share to the holders of FGS – Amico, in the form of dividends.
It’s an interesting investment offering.
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