Bullfrog was genius.
If anyone with any say in the games industry is by chance reading this, I would easily pay $99+ for a "Shadowrun Returns" style remake of the game, instead of sequels to the mediocre, Syndicate in name only FPS they released last year:
26 hours left.
I guess I'd be a pretty big hypocrite if I didn't kick in the $99 now.
In the USA one still can't crowdfund (from non-accredited investors) yet, but in a couple of months one will be able to share with the general public that they're fundraising.
These raises are possible because of Rule 504, 505, & 506 of the SEC.
Seed offerings: http://www.sec.gov/answers/rule504.htm Series A: http://www.sec.gov/answers/rule505.htm Series B & later: http://www.sec.gov/answers/rule505.htm
Only a market where a flood of new, mostly indistinguishable entrants would be able to use an app for funding
Let's say the company exits for $20m. Let's ignore preferred stock and assume it's all common to make the math easier. The syndicate would get $4m.
The first $1m would be payed back to the entire syndicate. The lead would get an additional 20% of the $3m or $600k. Then the rest of the $2.4m would be split amongst the syndicate.
Read chapter 9 of Venture Deals for more detail.
i'm not an expert but i believe the carry is the portion above and beyond the promised return - in this case, the syndicated invested $1m, the promised return (let's call it 10% a year) would then be $1.1m (let's call it a year of waiting).
wouldn't the carry (the "bonus", basically) be 20% of $2.9m?
or maybe these deals lack a promised return and define the carry as anything beyond returned principal?
In the UK that's basically the distinction between a limited company and public limited company (PLC).
Gods help anyone who tried to find a way to sell stock in a limited company to the general public. Prison would beckon, I suspect.
Limited companies are restricted from selling shares to the public. How do they get around it?
EDIT: Scratch that, looks like the FSA green-lighted it. Wow.
