Crowdfunding has become a fixture of the landscape of Indie games and their development. Sites like Kickstarter, IndieGoGo, and FIG.CO all offer development teams an opportunity to get their idea out there, attract a following, and hopefully fund a game.
There’s a new player in town though, and one that offers something a bit different from what we are used to. EquityArcade is looking to let gamers directly invest in, and get revenue from, the game’s they support, for as little as $25.00.
That’s a whole lot different than a T-Shirt and an in-game item.
We’re raising funds for independent studios and developers while making investing accessible and fun for millennials and centennials. Millennials tend to avoid the stock market, and Wall Street is foreign to most Americans. EquityArcade is providing a tool by which anyone (national or international) can invest in a multi-billion dollar industry.
EquityArcade will undoubtedly be lumped together with the other crowdfunding platforms out there by many, but this really is a different beast, with a ton of potential, and a number of things to be aware of.
If you invest $25.00 (the minimum) into a EquityArcade funded project, you’ll receive 1 Revenue Sharing Interest. You’ll receive an additional Revenue Sharing Interest for every $25.00’s invested, as well as project specific rewards we are used to seeing, like a copy of the game or the opportunity to have your name appear in game.
For every Revenue Sharing Interest you purchase, you’ll be entitled to a percentage of the gross, cumulative revenue generated from sales of that game. Different projects will have slightly different breakdowns of how much of the game’s profits each Revenue Sharing Interest will entitle you to, how these will be paid out, and what additional safe guards may exists, but in the end it boils down to you making money by investing in a game.
– Millennial/centennial focused investment platform that educates and streamlines the investment process
– Investors get a real piece of the pie – all offerings are for revenue sharing interests, meaning, actual, tradeable revenue sharing interests in the company.
– Integrated security regulations into its platform, to allow developers to compliantly raise capital from the general public
– First company to allow credit/debit cards for investing, instead of antiquated bank wires/ACH
– Minimum investment of only $25
Right off the back, this should feel a bit more complex than Kickstarter, and it is, but that isn’t a bad thing. Before you can invest in any project on EquityArcade, you’ll need to complete an Investor Application to find out how much you’ll be pre-approved to invest. You’ll need information like your Social Security Numbers, your annual income, net worth, and whether or not you are “employed by a registered broker-dealer, securities exchange, and/or FINRA”. Like I said, more complicated than Kickstarter, but EquityArcade is presenting a platform for financial investment, unlike other crowdfunding sites.
Kickstarter and the crowdfunding systems like it are, essentially, asking for a donation. It happens to be a donation with some Sweet perks and rewards, but it is a donation, with no guarantee of completion. EquityArcade is offering a share of the actual profits of the game you have invested in. There’s a lot of potential in this, but also a lot more weight, so it’s worth reading the fine print and understanding what that means.
It’s clear that EquityArcade is offering a new opportunity to gamers, but what the attraction for developers? Obviously this is another avenue for funding independent projects, and the more opportunities and options to get game’s funded, the better if you ask us. Additionally, developers one of the largest appeals of EquityArcade is that, as a developer, you won’t have to spend time, energy or money on rewards fulfillment unless you want to for a higher tier reward, since there’s no expectation of this like there is with Kickstarter. It’s might not immediately seem it, but this is a MASSIVE benefit for small teams with limited resource.
On the other hand, the developer will have direct investors with a stake in the game’s profits, which could lead to some need to bend to investor desires or wants.
EquityArcade is offering a powerful tool and opportunity to just about everyone out there, be they gamer or developer. However, this is a financial investment, and thus deserves more thought and planning than drunkenly backing a game on Kickstarter after a serious bout of gaming.