CrowdDragons.com is the first specialized crowdfunding portal in Poland which offers the opportunity for Investors to support projects in the field of computer games, console and card games as well as new technologies (VR / AR).
Portal enables investments in projects under three models:
How does the originator spend theraised funds?
Your investment will be used to complete or develop the Originator's project. As a rule, the financing includes such activities as, for example, completion of project production, testing, quality control, marketing activities. In the description of each campaign, the Originator defines what the received funds will be spent on. In the case of revenue crowdfunding, funds raised are always paid in stages. Individual milestones are assigned to each project, out of which the Originator will be billed every month. Only a fully realized milestone guarantees the payment of another pool of accumulated funds.
How can I get a return on investment in equity crowdfunding?
An investment made through equity crowdfunding works on a similar principle as an investment in any company on previously known principles - whether it is an investment on the stock exchange or the purchase of shares in a partner company. After making the investment through Crowd Dragons, the investor becomes part of the project - becomes his ambassador or sometimes a mentor. Promoting the project in all possible ways is therefore in Investor interest, and the success of the project translates into the company's value on the market. The higher value of the company it is the greater chance for Investor for a higher return on investment. The greater success of the company, the more the awareness of its brand increases, and the easier it is for people or entities interested in purchasing shares in the company from the Investor.
The second way to obtain a rate of return from a project financed as part of equity crowdfunding is to achieve such maturity by the company that it will be able to pay the Investor a dividend. This is because the most natural return path for the Investor from each investment.
The last exit path from the investment for our Investors is to bring to the market, for example on the NewConnect market, entities that have carried out equity crowdfunding campaigns at Crowd Dragons. Persons associated with the portal due to their long experience from the capital market, are able to carry out such a process effectively and for the best projects to acquire, for example Polish institutional investors.
How can I get a return on investment in case of revenue crowdfunding?
The return on investment and, most crucial in investments, the profit obtained in the case of revenue crowdfunding is made without the participation of the Investor itself. After the commencement of the commercialization of the project, which the Investor has financed as part of the revenue crowdfunding campaign, adequate funds derived from the income from the sale of the given game will go to the Investor's bank account.
The constant principle of campaigns conducted by CrowdDragons.com is that first 100% of revenue from a given project goes to Investors and the Publisher in accordance with the structure of invested funds, and only the profit from a given project is shared proportionally between the Investor and other shareholders of a given project in accordance with the structure of shares in project.
For example, if a given project was financed with the amount of 100,000P LN through the crowdfunding campaign, additional 100,000 PLN invested Publisher, and investors in exchange for their contribution are to receive 10% of future revenues from a given project when the project receives a global revenue of 500,000. PLN, the investor receives 100 thousand PLN (return of the invested amount when covering its global costs, i.e. 200,000 PLN) and an additional PLN 30,000 PLN (10% of the difference between 500,000 PLN of global revenue and 200,000 PLN of global project costs). Therefore, the return on investment would be 30% in this case.
Investment risk and its minimization
With every investment made in entertainment industry projects, the high level of risk associated with them must be taken into account. In this type of investment Investor always need to be aware of the risk that the project fails, the game will be badly picked up by players or reviewers or a well-rated game will sell in a smaller than expected number of pieces. It is not always possible to precisely determine the return on investment date. Due to the risk profile characteristic of the gaming industry and new technologies, it is recommended to diversify the portfolio of projects. Each Investor as part of the diversification of the investment portfolio should allocate about 5-15% of the entire investment portfolio for alternative investments.
In order to minimize risk, CrowdDragons.com takes the following actions: