Kickstarter Vets Launch Video Game Crowdfunding Site With Equity Investing

Lizzy Finnegan

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Kickstarter Vets Launch Video Game Crowdfunding Site With Equity Investing



Some of Kickstarter's most successful veterans have teamed up to launch an alternative to the crowdfunding site that will offer rewards-based crowdfunding and equity investing.

Former COO at Double Fine Justin Bailey has launched Fig [https://www.fig.co/campaigns/outer-wilds], a new crowdfunding site focused exclusively on games, that allows accredited investors with net worths over $1 million to invest at least $1,000 in exchange for an equity share in the game. The site launched today with a campaign for space exploration game Outer Wilds. Bailey teamed up with former Double Fine colleague Tim Schafer, inXile's Brian Fargo, and Obsidian's Feargus Urquhart, all of whom have pledged to launch new video game campaigns on Fig.

"When Justin came and talked to us about the equity side of things, we thought that could change things so much from the standpoint of what we could get funded and how we could get funded," Urquhart said in an interview [http://venturebeat.com/2015/08/18/bailey-schafer-fargo-and-urquhart-create-a-kickstarter-competitor-built-for-games-and-equity/]. "Instead of add-ons and stretch goals and all these things being this very ad hoc thing we have to do, it really makes it so that we can run our campaigns in a way that's the way video game campaigns have been run on the different crowdfunding sites."

Those launching projects have the option not to participate in the equity investment program, and Urquhart stated that everyone will understand what part is crowdfunding and what part is investment funding. It was important to them to offer that flexibility. It was also important for them to create a site focused on video games. Fig was designed as a way to assist game development companies during and after the campaign, ditching the one size fits all approach that many other sites use.

"Other crowdfunding sites are horizontal. They serve many industries. Anything you do has to work for taxidermy just as much as it works for video games. If you look at a lot of crowdfunding, it's about building a finished product. The campaign goal is set at the minimum amount of orders needed to make that product," Bailey said. "Games are completely different. The people involved are financing the development of that game. It's much more specific. A lot of times, with these high-profile games like Feargus and Brian and Tim make, the stakes are high. Multiple millions are coming in."

"If we want to make bigger stuff, if we want to involve people even more in what we're doing, this takes crowdfunding to a point where people can fund $50,000 games, or $2 million games, or $5 million games," Urquhart added. "Hopefully we can even get to $10 million and $15 million games. That's great for the independent game development scene, allowing that. That's what the difference is. It's about why we want to do it."

"We're curated. We're specific to games. We're a vertical approach, so our involvement doesn't just stop once the campaign is done," Bailey said. "A lot of the stuff we have is value-add stuff. Things like continued mentoring that's going on. But when the game launches we're going to help promote it to make sure it sells more."

[Source: VentureBeat [http://venturebeat.com/2015/08/18/bailey-schafer-fargo-and-urquhart-create-a-kickstarter-competitor-built-for-games-and-equity/]]

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Sarge034

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First off, why the 1 mil net worth requirement? Seems counterproductive to cut out that large of a money pool. Second, why the $1,000 requirement? I could see it if it was only for the investment side, but the donation side (sorry, "crowdfunding") should really be whatever you want to donate seeing as there is nothing to get in return. And lastly, if you're gonna do this you'd be a fool to not pick the investor side. You will actually have a legal pitchfork to skewer these folks with if they fail to fulfill their promises. I eagerly await the first failure and the subsequent shitstorm.
 

Blazing Hero

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So basically an elitist improved version of Kickstarter for millionaires? Oh joy..... =/
I wonder if Tim realizes that half of what Kickstarter does is build up hype between people who fund the game. If you leave it to the ultra rich to fund I fail to see how well word of mouth will work to sell a game. If anything it would make me less likely to want to buy a product funded this way.
 

zerragonoss

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Sarge034 said:
First off, why the 1 mil net worth requirement? Seems counterproductive to cut out that large of a money pool. Second, why the $1,000 requirement? I could see it if it was only for the investment side, but the donation side (sorry, "crowdfunding") should really be whatever you want to donate seeing as there is nothing to get in return. And lastly, if you're gonna do this you'd be a fool to not pick the investor side. You will actually have a legal pitchfork to skewer these folks with if they fail to fulfill their promises. I eagerly await the first failure and the subsequent shitstorm.
Blazing Hero said:
So basically an elitist improved version of Kickstarter for millionaires? Oh joy..... =/

I wonder if Tim realizes that half of what Kickstarter does is build up hype between people who fund the game. If you leave it to the ultra rich to fund I fail to see how well word of mouth will work to sell a game. If anything it would make me less likely to want to buy a product funded this way.
The 1000$ and net worth is only to get in as an investor. Otherwise from what I read it works basicly like kickstarter with every tier above 1000$ being you get a portion of the profits. They also said that it will sperate the numbers form regular donations and investor donations so its easy to tell where the intrest is coming form.
 

Maze1125

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Blazing Hero said:
So basically an elitist improved version of Kickstarter for millionaires? Oh joy..... =/
I wonder if Tim realizes that half of what Kickstarter does is build up hype between people who fund the game. If you leave it to the ultra rich to fund I fail to see how well word of mouth will work to sell a game. If anything it would make me less likely to want to buy a product funded this way.
It's not just for millionaires. You can still back them in the standard Kickstarter way, the investing is just another option. (As for the millionaire limit on investing; as I understand the blame lies with investment law, not the site.)
 

ShakerSilver

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Nov 13, 2009
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>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!

The fact that this is being made by members of the San Fran indie clique, will only have 2 projects running at any time, and "promotes" the games after the campaign ends makes this just seem like it's going to be the platform of all those rich hipsters in the San Fran area so they can invest in each other perpetually.
 

Covarr

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I don't understand the net worth requirement, not when there's already a minimum investment.

P.S. Thanks
 

Naqel

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ShakerSilver said:
>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!

The fact that this is being made by members of the San Fran indie clique, will only have 2 projects running at any time, and "promotes" the games after the campaign ends makes this just seem like it's going to be the platform of all those rich hipsters in the San Fran area so they can invest in each other perpetually.
This.

Crowdfunding is already stretching it when it comes to overstaying it's welcome.
Having another site, offering nothing new in the big picture of things, run by people who have either directly mismanaged funds, or tie to the under-delivering con-artist clique, can only go wrong, or horribly wrong.
 

jayzz911

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Tim Schafer? Really? I like the guy when he makes games but that man can't handle a budget to save his life. Kickstarter is a recognized brand now. Making people legal investors that share in the profits means they are going to be open to lawsuits when your product doesn't get finished. Also the million dollar thing can only be seen one way.
"Good day sir, says here you donated a thousand dollars to Chalice Age. We need you to donate another couple thousand dollars. We know you have at least a million dollars in your portfolio! Development is not going as planned and we need more money to finish our game. Yes we got a couple million and said we could do it but we wanted a brass band to do the music for a quarter of a level. So more money will be expected from you. Have a nice day."
 

ThreeName

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ShakerSilver said:
>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!
Thank you for succinctly and efficiently summing up my thoughts during this article.

Double Fine/Schafer are as useless as a chocolate teapot.
 

Neurotic Void Melody

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Damnit, Tim Schafer! You used to be cool. Now you're sinking to this? Eh well, I guess some people will benefit somewhere from this. Most likely the coke dealers and hookers he spent all that Broken Age cash on.
 

Bat Vader

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I'm curious but if someone invests in a game on there would they actually make money off of the sales of the game or no?
 

lastcigarette

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If there are still people out there willing to give Timmy 'sockpuppet' Schafer money, my uncle the Nigerian Prince and I would like to set up a business meeting with them.
 

Gennadios

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...

It makes perfect sense.

Double Fine already shat the bed with investors, or at least publishers. They disliked working with him before it was cool.

Then they shat the bed with their player base by mishandling Kickstarters and Early Access.

All they have left is people who aren't part of the player base, but also aren't major players in AAA. In other words, people who don't know any better but heard that technology makes money.

Perfect for San Francisco, I wish them luck.
 

Callate

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Maybe I'm pessimistic, but I just get a bad feeling about this all the way around. Giving financial players even more creep into the indie scene and putting the already dubious fulfillment of Kickstarter on a collision course with people who are going to not just expect but demand ROI?

At best, I foresee tumultuous growing pains; at worst, real damage to the indie market.
 

Sarge034

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zerragonoss said:
The 1000$ and net worth is only to get in as an investor. Otherwise from what I read it works basicly like kickstarter with every tier above 1000$ being you get a portion of the profits. They also said that it will sperate the numbers form regular donations and investor donations so its easy to tell where the intrest is coming form.
Source please, because it sure as hell didn't say that in the article...
 

Demagogue

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Mar 26, 2009
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Naqel said:
ShakerSilver said:
>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!

The fact that this is being made by members of the San Fran indie clique, will only have 2 projects running at any time, and "promotes" the games after the campaign ends makes this just seem like it's going to be the platform of all those rich hipsters in the San Fran area so they can invest in each other perpetually.
This.

Crowdfunding is already stretching it when it comes to overstaying it's welcome.
Having another site, offering nothing new in the big picture of things, run by people who have either directly mismanaged funds, or tie to the under-delivering con-artist clique, can only go wrong, or horribly wrong.
Both of these... I was leery enough with just Justin Bailey being involved... but this has got NOPE written all over it.
 

CrystalShadow

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Sarge034 said:
zerragonoss said:
The 1000$ and net worth is only to get in as an investor. Otherwise from what I read it works basicly like kickstarter with every tier above 1000$ being you get a portion of the profits. They also said that it will sperate the numbers form regular donations and investor donations so its easy to tell where the intrest is coming form.
Source please, because it sure as hell didn't say that in the article...
Source? How about you check the link to the actual site.
It took me all of about 20 seconds to infer that this was true.

That's without explicitly verifying it either.
Just from the fact that it's possible to back a game for $20.

So, you know. You could actually check the site this is about itself? Rather than relying on a third party article and then complaining about lack of 'sources'?

Still, if you really are that sceptical, and insist on getting someone else to do the legwork for you.
Here:
On Fig, game studios can use rewards-based crowdfunding, investment crowdfunding, or a combination of both to raise funds for their game. Anyone from anywhere can support a crowdfunding campaign on Fig. Currently, only accredited investors can support a game through investment crowdfunding but in the future unaccredited investors will also be able to invest in a game.
(relevant sections bolded by me.)
Direct link to the source for this: https://help.fig.co/hc/en-us/articles/207255347-How-does-Fig-work-
 

Wuvlycuddles

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ShakerSilver said:
>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!

The fact that this is being made by members of the San Fran indie clique, will only have 2 projects running at any time, and "promotes" the games after the campaign ends makes this just seem like it's going to be the platform of all those rich hipsters in the San Fran area so they can invest in each other perpetually.
Agreed, what concerns me though is that developers are the last people to be in charge of something like this, who is going to take them to task for failing to meet goals? Who is going to make sure they are honest about the money they make, this is of particular concern to potential investors. While the whole thing does sound like a good idea it should be run by experienced PUBLISHERS, someone who isn't going to take excuses, someone who is on the side of the investors and not the creators. I mean, we give EA and all that shit for being evil.... but they make money and they get games made, perhaps the most important things for an investment/crowdfunding site.
 

JohnZ117

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Jun 19, 2012
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ShakerSilver said:
>Crowdfuding
That alone is enough to raise a red flag.
>Double Fine exec is founding it
Warning lights starting to go off...
>Tim Schafer is on the advisory board
SOUND THE ALARMS!
Did you notice the other people involved, inXile's Brian Fargo, and Obsidian's Feargus Urquhart? To my understanding, both of their teams have released games that were generally well-received and successful.
The fact that this is being made by members of the San Fran indie clique, will only have 2 projects running at any time, and "promotes" the games after the campaign ends makes this just seem like it's going to be the platform of all those rich hipsters in the San Fran area so they can invest in each other perpetually.
This is a small group, having only 2 projects at a time seems like a great idea to me. If Fig is successful, they will probably consider expansion, but in the meantime, they should be more concerned with getting their projects right.