Equity Arcade, a new crowd investing platform, gives anyone the chance to invest in game development.
Equity Arcade allows non-accredited investors the opportunity to purchase a revenue sharing stake in games. These shares entitle investors to a percentage of the game’s profits after launch. In contrast to Fig, another crowd investing platform, Equity Arcade offers lower purchase prices. A share on Equity Arcade can be purchased for as low as $25. Currently a share in Wasteland 3 on Fig costs $1,000.
Because everyone who supports a project is also getting a revenue sharing interest, Equity Arcade does away with reward tiers common to crowdfunding. The company argues that most projects end up spending 20 to 40 percent of their funds fulfilling rewards. After accounting for fees, developers only see 60 to 80 percent of the total go towards development. Equity Arcade argues that by eliminating rewards, projects can utilize 90 percent of their capital. This also means that unlike most platforms, investing in the project doesn’t also include a copy of the game. Both current projects require a minimum investment of $100 before investors are given a copy of the game.
Equity Arcade is currently offering shares in two games. Damsel is an action platformer developed by Damsel Productions. As Agent Damsel, players will battle vampires and rescue hostages in more than 120 levels according to the developer. A free demo is currently available on the game’s investment page.
The other project is Kite. Developed by the one-person Lab Cat Games, Kite blends dual joystick shooters and RPG elements. The game offers players a 76-point skill tree and the possibility for several builds according to the developer. The game is also currently available on Steam Early Access.
Equity Arcade takes advantage of recent changes to SEC rulings for investment. Previously only accredited investors could invest in these projects. An accredited investor was required to have a net worth of $1 million or an annual income of at least $200,000, making it out of reach for many. As part of the sign-up process, Equity Arcade calculates an annual limit based on income and net worth to limit investor risk. Interested investors can sign up at Equity Arcade’s website.
