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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:

  • equity crowdfunding (purchase of shares in the Company) - obtaining financing by the Originator for the implementation of the project, under which the Originator submits to the Investors an offer to finance the project in exchange for shares in the company of the Originator. Equity Crowdfunding in CrowdDragons.com applies only to obtaining financing for entities operating in the form of a limited liability company. The investor acquires ownership and supervisory rights resulting from the Commercial Code. His profit is determined by the increase in the value of shares held.
  • revenue crowdfunding (purchase of a share in future revenues from the project) - a unique method of social financing developed by Crowd Dragons.com, under which the Investor submits to the Investors an offer to finance the project in exchange for participation in future revenues from this project. For the first time on the Polish market, community investors gain access to the investment method reserved to date for only a small group of Publishers. The return on investment depends only on the sale of the game within a given project (or games if a package of projects is offered). In order to control revenues from the sale of the product and to distribute them respectively between Investors and Originators, CrowdDragons.com cooperates only with projects that have Publishers (as part of the campaign fulfill the role of the Originators) or assume the role of the Publisher for a given project - mainly to fully control revenues from the sale of the product and distribute them accordingly between Investors and Originators.
  • traditional crowdfunding - financial support of the project for prizes e.g. in the form of a ready-made game, this investment model will be launched as a support in selected campaigns of equity or revenue crowdfunding.

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:

  • makes verification of projects in terms of the idea for gameplay as well as in terms of quality of performance,
  • focus on projects in the mature production phase, and having an advanced playable demo, the so-called vertical slice (a cross-sectional demo through a project - part of the game that acts as a confirmation of the concept for a stakeholder game before they agree to finance the rest of the production),
  •  in the case of revenue crowdfunding, in order to control revenues from the sale of the product and to distribute them respectively between Investors and Originators, CrowdDragons.com cooperates only with projects that have Publishers (as part of the campaign fulfill the role of the Originators) or assume the role of the Publisher for a given project - mainly to fully control revenues from the sale of the product and distribute them accordingly between Investors and Originators.

 

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Klauzula informacyjna

Crowd Dragons Sp. z o.o. posiadającą siedzibę w Warszawie, przy ul. Wilczej 28/10, jako administrator danych osobowych, znformują Panią/ Pana, iż:

  • podanie danych jest dobrowolne ale niezbędne w celu współpracy biznesowej oraz uzyskania informacji marketingowej;
  • posiada Pani/Pan prawo dostępu do treści swoich danych i ich sprostowania, usunięcia, ograniczenia przetwarzania, prawo do przenoszenia danych, prawo do cofnięcia zgody w dowolnym momencie bez wpływu na zgodność z prawem przetwarzania;
  • podane dane będą przetwarzane na podstawie art. 6 ust. 1 pkt a) i zgodnie z treścią ogólnego rozporządzenia o ochronie danych.;
  • dane osobowe będą przechowywane przez okres niezbędny do zakończenia współpracy biznesowej;
  • ma Pani/Pan prawo wniesienia skargi, gdy uzna Pani/Pan, iż przetwarzanie danych osobowych Pani/Pana dotyczących narusza przepisy ogólnego rozporządzenia o ochronie danych osobowych z dnia 27 kwietnia 2016 r.;
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