Yesterday, Fig passed a rather important milestone, one that people had been waiting a while to see happen. Fig officially received its approval for the Psychonauts 2 crowdfunding from the United States Securities and Exchange Commission (SEC) to offer non-accredited investors shares in Psychonauts 2. Previously, non-accredited investors had reserved their shares while they submitted the application, which is likely to be the longest as it was the first one.
The reason for the delay was that they had to know the campaign was going to succeed and send in the offering for the SEC to approve the Fig Game Shares—PSY2 for Psychonauts 2. As for why the approval took so long, in a blog post, they explain that they had to work with the SEC to help work out some issues and deal with the inevitable headaches that come from creating what is essentially a new type of investment. The work they did has led to some tweaks in how the model works in respect to paying out money to developers and how it is organized.
Previously, as we discussed in a post on various rumors and misconceptions regarding Fig, you were investing in a Limited Liability Corporation that was created specifically for funding the company. In Psychonauts 2‘s case, that company was called Grasslands, and investors got shares in that LLC. Now, you get the new Game Shares, which are directly in Fig but correspond and track only to the sales of the game you have invested in. These are a new type of security apparently and get around some of the awkwardness that was in the previous set up.
The the other big change they have shown is that they are using milestones now. We’ll be talking more with Fig about this in the future, but it appears they will be doing a sort of milestone set up and providing investors with updates during development. So, instead of all the investment funding going in one giant payment, it will be paid out over time upon insuring that work is being done on the project. Some of the details for this can be found in a post done back in June.
With the details all confirmed and set, the path is now open for those who had registered investment interest to officially pick up their Fig Game Shares. Fig will be reaching out to them soon and does implore backers to re-review the information available on their website as well as the SEC website. Speaking on the matter overall and the situation, the founder and CEO of Fig Justin Bailey said:
“Enabling fans and communities to directly support and financially benefit from their favorite games is transformative to the publishing of interactive entertainment and beyond. Fig is committed to evolving video game publishing and crowdfunding in this direction that benefits fans, communities, and developers, and ultimately to the making of great games”
Expect to hear more from TechRaptor on Fig, as we take a closer look at how it functions. If there are any questions that you have regarding Fig, please put them in the comments below!