Investing in the success of video games

The video game market is massive.

At the height of the pandemic in 2020, the industry generated revenues of $177.8 billion, an increase of 23.1% year-over-year. Looking ahead, the global gaming market is expected to hit nearly $270B in value by 2025.

Video game development then

Developers used to rely heavily on publishers for funding

It takes a lot to develop a video game. The process is layered with several steps—from concept to pre-production to development to testing—all the way to launch and post-production support.

It may come as no surprise that such a complex process involves a lot of people with different talents working together to create something that generates mass appeal. Much like movie production, video game production relies heavily on collaboration and, of course, large sums of money.

In the past, the more established developers typically secured funding from large publishing companies. The smaller, less-experienced developers (indies) often had to bootstrap their projects out of their coffers. 

Historically, this model has led to unsteady ground between developers and publishers, mainly due to conflicting motives between the two parties. Publishers that financed development often inserted members of their staff to manage risk and monitor the developer's progress. More often than not, this resulted in a rocky dichotomy between money and creativity.

Video game development now

Now developers can raise from their fans

Fast forward a few decades later, and the world of gaming looks a lot different. Now, developers have more options to raise capital and get their projects off the ground. 

This new form of fundraising allows game developers to raise capital directly from the public—allowing them to retain creative control of their projects and intellectual property along the way.

It also allows fans to contribute to the success of the games they believe in. In the past, crowdfunding campaigns were merely “reward-based,” meaning anyone who donated money to a game’s development received perks like limited edition collector’s items, early access to the game, or other merchandise.  

While the rewards-based model gave a voice to the people that matter the most, the fans, it fell short on delivering what the players wanted all along: skin in the game. 

Along came Fig 

Fig is a successful community-powered video game publisher that allows anyone to invest in the games they love. Since 2015, their team has been on a mission to provide game studios and their fans with a more balanced and sustainable approach to game development. 

After working tirelessly to get qualified with the SEC, Fig became the first platform to offer investors the opportunity to participate in the revenue sharing of games under Title IV of the JOBS Act (Reg A+). In essence, they changed how games get made by bringing together fans and investors for the first time. 

Before Fig came along, equity crowdfunding for games in the U.S. was only available to wealthy (accredited) investors. And even then, investors could only purchase equity that offered a return tied to the financial performance of an entire company—not a single game. What’s more, these investors couldn’t cash in unless an exit event occurred—a process that takes 7-10 years to happen (if ever at all). 

Fig’s success has been nothing short of stellar, winning nearly 100 nominations from major award shows while paying out returns as high as 300% (as of August 24, 2021). 

Fig was so good, we had to have them on our team! In April of 2020, Republic acquired Fig. Together, we aim to create exciting opportunities for our community of investors while contributing to the expansion of the indie gaming industry. 

• Best of all, we’ve created a new way that you can invest in video games...

Introducing: Fig Portfolio Shares

Invest in the success of multiple games at once

You asked—we listened! We are proud to announce the launch of our latest deal in video game investing… with a twist.

With Fig Portfolio Shares, you can invest in the success of all of the amazing games that Fig funds—from AAA, indies, sequels to beloved classics, and buzz-worthy new originals!

Fig’s impressive track record

Past performance does not indicate future success

Want to know how it all works?

Check out the deal page

An offering statement relating to Fig Publishing, Inc.'s preferred stock, class FPS - Series 2021 has been filed with the Securities and Exchange Commission and became qualified on August 18, 2021. Prior to any investment Fig Publishing, Inc.'s preferred stock, class FPS - Series 2021, you should review a copy of the offering circular or contact Fig Publishing, Inc. by phone at 1-800-587-1340 or in writing at 335 Madison Avenue, New York, NY 10017. No offer to sell any securities, and no solicitation of an offer to buy any securities, is being made in any jurisdiction in which such offer, sale or solicitation would not be permitted by applicable law. 

This educational article is provided by Republic to help its users understand this area of the market, it should not be construed as investment advice as it is impersonal, disinterested and was produced by Republic for Republic’s users, without remuneration received or expected.