The new crowdfunding platform from Indiegogo and Microventures allows developers to offer a stake in the company for participating in the financing of the project.
Crowfall is one of the first games on the new platform
The crowdfunding site Indiegogo, together with the investment company MicroVentures, launched a joint project on “people’s financing”, thanks to which any user will be able not only to accelerate the appearance of the desired product, but also to receive a part of his favorite company as part of financing.
This type of crowdfunding is much more interesting to investors than conventional crowdfunding. They are easy to understand, given, for example, the experience of Oculus. The project became possible only thanks to the “people’s” fundraising, and then was sold by the authors for $ 2 billion to Facebook. At the same time, the original investors did not receive a piece of this pie.
The problem is that fundraising on the Indiegogo and Microventures platform will cost the developer much more. If it costs nothing to start a campaign on the Indiegogo base platform (you are only required to pay 5% of the amount received after fundraising), then under the new platform you will have to pay at least $7 thousand for participation. Plus, the site will take 7% of any raised funds as a commission and another 2% from the project. This does not mean that they will take 2% from the invested funds from the investor.
Plus, startups will have to provide information on how they plan to spend the raised money, as well as regularly report, if successful, on the state of affairs.
The minimum investment within the Indiegogo and Microventures platform starts at $100. But what size of the share the investor will receive from the payment depends on the specific campaign.
Earlier this year, a similar platform was already launched – Fig. It allows investors to receive money from sales of the game after its launch.
Both services became possible after the U.S. Securities and Exchange Commission in May of this year allowed anyone to become an investor in the company as part of crowdfunding. Prior to that, only selected accredited investors could invest in early-stage companies.
Just below is an example of how the Crowfall authors from ArtCraft Entertainment approached raising money.
Source: The New York Times