Crowdfunding platform Indiegogo has formed a partnership with investment firm Microventures to open up a new section of its site, focussing on equity crowdfunding projects, which will offer backers a stake in the company in return for their investment.
This is a similar deal to game crowdfunding program Fig that appeared on the scene last year so game makers might be familiar with the process, but Indiegogo includes not just games but pretty much everything crowdfunding you can shake a stick at, too.
It’s a little different to normal crowdfunding, and as a result developers should be warned it will be more expensive than creating a normal crowdfunding project. Indiegogo usually allows crowdfunding projects to start for free and takes a 5 per cent cut, but in this case, Indiegogo representatives suggest it could cost around $7,000 in estimated fees, with Indiegogo then taking 7 per cent of all funds gathered, and 2 per cent stock from the project. It’ll also be taking $7 or 2 per cent of their investment, whichever is higher.
Anyone can invest on the platform over the age of 18 right now, with a minimum starting investment of $100, and a maximum that varies depending on several financial criteria, which hasn’t been fully explained yet.
Among the launch projects in the new initiative is a single game, Artcraft’s MMORPG Crowfall. The title has already raised $1.7m on Kickstarter.