Fig’s chief executive officer Justin Bailey broke the news yesterday that his fledgling company will require an amendment be filed with the federal government’s Securities and Exchange Commission (SEC) before it can collect outstanding unaccredited investments.
In the blog post Bailey outlined key changes to how Fig will be structured, and in how investment money will be doled out to game projects once collected.
The highest profile game being funded by Fig, a platform which blends traditional rewards-based crowdfunding with equity investment, is Psychonauts 2. That campaign was completed in early January and was among the first games to ever accept money from unaccredited investors. Now, nearly seven months later some portion of more than $1.8 million in investment has yet to be collected because of the SEC's request for amendment.
What portion of those investors will still be interested in participating so long after the campaign finished is anyone’s guess, putting an unknown part of the game’s estimated $10-13.5 million total budget at risk.
"While it’s taken us several months longer than we anticipated to get you these details, we felt it was time well spent," Bailey wrote on the official Fig blog. "Our mission is to build a vibrant, sustainable game ecosystem of fans, investors and developers that will last for years to come. That means we need to make sure the terms we set now with our Fig Game Shares and the [Psychonauts 2 share] offering provide a solid foundation for the future."
Bailey also explained that rather than giving developers all of the equity investment funds up front, Fig will distribute those funds at certain milestones.
"Investors will also get updates during development," the post explained. "Coming from a development background ourselves, we feel this creates greater accountability and transparency for all involved."
After a string of back-to-back campaigns, Fig has not launched a new fundraising effort since April. Its most recent campaign was for Consortium: The Tower, a science fiction title being funded in part by BioWare co-founder Greg Zeschuk. That effort brought in $99,000 in traditional crowdfunding revenue and $249,000 in equity investment, a portion of which has yet to be collected pending the aforementioned SEC review.
The revised SEC filing can be found here.
Correction: Fig reached out to Polygon to provide additional clarity on the SEC process. While accredited investment has been collected along with rewards-based money, the only portion outstanding is unaccredited investment. We've adjusted the article to reflect that. Additionally, Fig was asked to file an amendment and was not required to re-file its entire proposal with the SEC.