Crowdfunding Goes Legit!

Articles, Community News, Distribution | 21. Mar, 2011 by | 4 Comments

Check out this article… it is now becoming legal for filmmakers to sell shares of their films through crowdfunding. This is game changing…

http://www.thewrap.com/movies/blog-post/crowd-funding-how-make-it-work-filmmakers-25653

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  • http://blogfreako.com chad

    whoa! check out this one too:
    http://filmclosings.com/2011/02/power-to-the-people-the-democratization-of-film/
    he wrote that earlier and references it in that same article. exciting stuff! =D

    • http://sasikmoon.com Pawel

      Not to burst anyone’s bubble. But I’m about to burst your bubble. Audience Productions, if they are successful, will likely be acting like any other studio. Minimize costs and maximize profits- what does that mean to independent film makers? The same thing it means now- sell you script for cheap, act, direct for nothing, be happy and feel lucky that you got a break- and hope to make your money on project #2, #3, #4…

      In addition, it is impossible for an indy film maker to do what Audience Productions have done without 1. lots of $$, and 2. lots of experience in funding business ventures. Please don’t go out and start a website that sells shares in your film- you won’t be complying with SEC registration laws and you will get yourself in a lot of trouble.

      The second option Mr. Steele mentions is a bit more interesting, selling licenses for distribution is intriguing. However, I’m not confident it is actually practical. We’ll see…

      and I apologize for bumming everyone out.

      Oh- one thing though. I think generating the first 15-40k or so on kickstarter to get your project going is a great idea. However after that, things get complicated and you’ll likely need an attorney to sort it out for you…

      The information provided here is intended to provide general information and does not constitute legal advice. You should not act or rely on such information without seeking the advice of an attorney and receiving counsel based on your particular facts and circumstances. Many of the legal principles mentioned might be subject to exceptions and qualifications, which are not necessarily noted. Furthermore, laws are subject to change and vary by jurisdiction.

      • http://WebsiteURL Sam

        No one’s bummed out, man… I see this more as just being the beginning…but longer term, the ability to bring an investor agreement to the masses, and actually be able to raise your budget directly from your audience (and being accountable to them and not a studio), is pretty game changing. It won’t happen overnight, but in the very near future, the legal wrangling will get figured out, and there will be a standard way to do this where no one will get in trouble. Yeah, it’ll take money to do right (and an attorney), but it’s the fact that you will actually be able to do it that’s exciting… Being able to raise money for a project directly to from your fans (and not at a fundraiser) has simply never really been possible before… the only place you’d ever be allowed to raise money from would be rich people, and studios… people who are nearly 100% guaranteed to have bad taste and be out of touch with the common man.

        Trent Reznor got it right on the music side, and we’re slowly figuring it all out on the film side.

        • http://Sasikmoon.com Pawel

          More bursting.. I do not disagree that film makers will find creative ways to finance their projects. However, Indy financing, as an investment, from the general public, will only be possible through some other entity. It is, and in all likelihood will be, too costly. Please note the key term is “investment” and the secondary term “public”. If we move away from those two terms then a whole world of possibilities opens up.

          Please excuse typos as this was written on my iphone

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