Buzz
In recent years, crowdfunding has revolutionized how niche projects reach consumers, bypassing traditional corporate hurdles. While technology, food, and film often steal the spotlight, the gaming sector has quietly claimed the top spot on Kickstarter’s charts. To date, backers have contributed $813 million to nearly 38,000 video and analog game initiatives, with board games leading the charge.
Beginning May 1, Space Goat Productions, a publisher of board games and comic books, is pushing the envelope further. They’ve initiated a Wefunder campaign, inviting individuals to invest directly in the company behind popular titles like Evil Dead II, The Terminator, and Howling.
“We’re pioneering as the first publicly-owned hybrid company specializing in both board games and comic books,” says Shon Bury, president of Space Goat. “Our expertise spans both industries seamlessly.”
Equity fundraising became a reality in 2012 when Congress enacted the Jumpstart Our Business Startups (JOBS) Act. This law enables businesses to seek investors for equity stakes, offering the possibility of financial returns. Starting May 2016, companies could sell shares to the general public online, not just private investors. Bury, frustrated by banks' reluctance to fund small businesses, recognized a chance for gaming enthusiasts to play a more active role in the publisher’s growth. Campaigns with personal stakes, such as the Beta Bionics initiative for an experimental diabetes monitor that garnered over $1 million, often draw significant interest.
“Fans of comic books and board games enjoy being part of the creative process,” Bury explains. “This type of consumer is eager to engage with creators and contribute to their favorite hobbies.”
Space Goat ProductionsLegally, investors in Space Goat or similar companies must contribute at least $100 for a potential future equity share, with the company’s valuation capped at an estimated $5 million. Although they can’t override Bury, the majority owner, investors at specific tiers gain access to beta-testing opportunities, provide feedback, and enjoy discounts on Space Goat products.
Funds from Wefunder’s 45-day campaign will support company operations, production, convention attendance, marketing, licensing, and retail distribution. Evil Dead II and The Terminator are set for a 2018 launch, while The Howling, the original board game Game Buds, and a potential Evil Dead II graphic novel are planned for 2019.
Unlike Kickstarter, where backers receive product copies and bonuses, Wefunder focuses on supporting the entire company. If Space Goat thrives, investors can sell their shares during a second crowdfunding round or if the company goes public. Alternatively, they can retain their shares for a share of net profits. All valuations and revenues will adhere to SEC regulations, Bury confirms.
“This is a real investment with inherent risks,” Bury notes, meaning returns aren’t guaranteed. However, for gaming enthusiasts, betting on the allure of werewolves, Deadites, and Skynet might be more thrilling than trading pharmaceutical stocks.
