KICKSTARTER steps up for corporate responsibility, becomes new Benefit Corporation


If you follow business issues, particularly corporate entity structure and how the existing incorporation laws require companies to ignore the common good in favor of shareholder profits, then you may have applauded the recent creation of a new corporate entity form: the Benefit Corporation (also referred to as a “B-Corporation”). The popular current corporate structure (referred to as a “C-Corporation”) often comes under fire from all sides of the political spectrum because of the damage done to the economy, environment, and citizens as a result of its traditional focus on short-term profits. See, for example, “Clinton outlines steps to curb U.S. companies’ focus on short-term profits“.

Social funding site KICKSTARTER has just now converted to a Benefit Corporation.

KICKSTARTER

KICKSTARTER

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My Bumpy Road Through “Hollywood” — The Mean Streets


CITY STREET Photo by Israel Sundseth

Photo by Israel Sundseth

I spent a lot of time on the mean streets of Hollywood. I lived there, worked there, had friends there, I walked them a lot. My screenplay for the feature film EVERYBODY SAYS GOODBYE—The Story of a Father and Son is set there, in 1998.

The sketchy stretch of Santa Monica Boulevard between La Brea Avenue and Vine Street is a little nicer now, but not by much. There has always been a veneer of potential violence.

It’s a little different style-wise, too. Back in the 1990s, if you saw a couple walking hand-in-hand along this stretch, and that couple was of opposite genders, and if each of them were their original gender, then you knew they were scared tourists separated from their tour group. Continue reading

Equity Crowdfunding is dead for us. What’s next?


DEAD CAR Photo by Kristian Karlsson

DEAD CAR Photo by Kristian Karlsson


If you remember that there once was a glimmer of hope for more sustainable financing for innovative small business (and, for my concern, an indie film industry) through “Equity Crowdfunding” as demanded by the JOBS Act of 2012, the fact is that it’s not going to happen. It’s already far past the Act’s imposed deadlines because the concept is anathema to the entrenched and self-interested bureaucracy.
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The independent filmmaking industry needs a new relationship with investors [UPDATED]


LONELY INVESTOR Photo by Alejandro Escamilla

LONELY INVESTOR Photo by Alejandro Escamilla


Prolific indie film producer Ted Hope, who spent the past year as Executive Director of the San Francisco Film Society (as of June 2015, a Production Executive at AMAZON STUDIOS), recently posted “Towards A Sustainable Investor Class: Accessing Quality Projects” as a call to build a healthy independent filmmaking industry. As always, he makes an astute and excellent comment about the big picture of indie filmmaking. We engaged in a conversation, and here’s my comment about the industry and investors: Continue reading

My Bumpy Road Through “Hollywood” — CROWDFUNDING SUCKS.


CROWDFUNDING SUCKS.

In the past two days, I’ve had some conversations that remind me that there is no “fun” in crowdfund. It is a necessary evil, borne of the collapse of the economy, possibly the only chance for the art of filmmaking to continue. That’s versus the marketing channel that is the current Hollywood studio approach, where a “movie” is whatever can be marketed.
A crowdfund campaign is all work, a harsh referendum on the person, spiritually debilitating and, of course, a death knell for a movie project more often than enabling. (Literally.) There is no fun in crowdfunding. It overtakes one’s life for a month or two.

BUT YESTERDAY…

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From Slated.com: “The new ‘soft’ money” for making indie movies


This is very important information for filmmakers seeking funds for their movie projects, and explains the approach that has been surprising and frustrating for those indie filmmakers who are not interested in ROI (“Return on Investment”) or the investment aspect of filmmaking. (See my earlier blog, “Crowdfunding and ‘Hey Zach Braff STFU and pay for your own movie’“)

This article, “The new ‘soft’ money,” is from the investment funding site (not crowdfunding site) http://Slated.com, a closed environment for experienced filmmakers and investors interested in filmmaking.

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The new “soft” money

They may not have realized this but more than forty-six thousand individuals – many of them ordinary Americans with no prior film industry knowledge – had a direct bearing on what has been happening this past week thousands of miles away at the Cannes Film Festival. Not so much on the rain-sodden red carpet action, as on the business dealings that went on in the makeshift offices of the French film sales company Wild Bunch just a short distance away from that nightly fusillade of flashbulbs. For it is here that Zach Braff’s WISH I WAS HERE, a project only made viable by the $3.1 million that this multitude of individuals have pledged towards his total production costs, was being pitched to territorial distributors from around the world.

VIEW INFOGRAPHIC

Without that Kickstarter-enabled contribution, Braff’s long-gestating project would have remained stunted by the same market forces that have conspired to prevent him from directing a follow-up to his 2004 indie darling GARDEN STATE for close to a decade. “I have almost no foreign value,” he explained recently to the L.A. radio station KCRW. “I had done a TV show for ten years that doesn’t count. Garden State did well overseas. But not numbers that are going to show up on their algorithm.”

But throw in $3.1 million of non-recoupable crowd donations and the business calculus becomes so much more attractive. What would have been a reported $5.5 million package requiring quantifiable box office stars to make the numbers work, is now transformed into one costing less than half that amount and with a cast of characters played by actors Kate Hudson, Anna Kendrick, Josh Gad and Mandy Patinkin that could be chosen on creative grounds, rather than their overseas economic values. A ten-year lost cause has, in the space of just 31 crowdfunding days, flowered into one of the hotter projects pitched on the Croisette – a feat made all the more astonishing when you consider there were a total of 3,340 new projects unveiled for the first time at this year’s Cannes film market.

continue reading this valuable article on Slated.com

 

Crowdfunding and “Hey Zach Braff STFU and pay for your own movie” [UPDATED January 2014]


STFU ZACH BRAFF

STFU ZACH BRAFF

Why is there controversy about projects such as Rob Thomas‘s VERONICA MARS and Zach Braff‘s WISH I WAS HERE going to crowdfunding for the money to make their projects?

The surge in Perks-based Donor Crowdfunding over the past few years was primarily built on the concept that creative projects dreamed up by common folks with more ideas than money could go to each other rather than impenetrable banks or brokerages. The popular site Kickstarter (one of many) started in 2009 with the premise that such ideas, ones that were still good ideas even though they didn’t have a promise of likely profitability, could be brought to the public to allow the average person to help make the ideas into reality by donating money. This is a broad concept akin to what wealthy benefactors would do in ages past, when they became “patrons of the arts” by providing money so artists could create works of art.

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The JOBS Act of April 2012 is a Failure for America.


THIS IS A MAJOR JOBS PROBLEM AND NEEDS OUR ATTENTION:

America needs good jobs. Joblessness and low-wage jobs have crippled the survival and prosperity of millions of Americans, and are a drag on our entire economy.

The promise of the JOBS Act, signed into law a year ago and supported by the most bi-partisanship effort in recent history, is DEAD because the Federal Securities and Exchange Commission (SEC) has failed to enact it.

The JOBS Act established a deadline of Wednesday, July 4, 2012, for the SEC to promulgate rules and regulations for the implementation of TITLE II—ACCESS TO CAPITAL FOR JOB CREATORS (commonly referred to as the “general solicitation rule“). The SEC missed that deadline. The agency did publish proposed rules for TITLE II on August 29, 2012, but has not implemented them. There is no anticipated date for finalizing the rules for Title II of the JOBS Act.

The JOBS Act established a deadline of Monday, December 31, 2012 for the SEC to promulgate rules and regulations for the implementation of TITLE III—CROWDFUND (commonly referred to as “Equity Crowdfunding“). The SEC missed the deadline, and has no anticipated date for the rulemaking to implement TITLE III.

AMERICA NEEDS JOBS! Hope from the JOBS Act of 2012 has been *crushed* by the SEC’s inaction and dismissal of the JOBS Act!

 

FILMMAKERS, IT’S 2013. DO YOU KNOW WHERE YOUR JOBS ACT IS? Part 1


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FILMMAKERS, IT’S 2013. DO YOU KNOW WHERE YOUR JOBS ACT IS? Part 1 of 2

Michael R. Barnard

Michael R. Barnard

Written by Michael R. Barnard

Michael R. Barnard is a writer and filmmaker who has been researching the American JOBS Act since it was first proposed. Barnard is currently working on creating an independent feature film, A FATHER AND SON. He lives in Brooklyn, New York, and is the author of the historical novel NATE AND KELLY. Find him on Twitter at @mrbarnard1, Facebook at michael.barnard and LinkedIn at michaelrbarnard.

This article is an overview and observation, not legal advice.

 

SUMMARY: The independent film industry in America is not enjoying the growth that would be expected from the surge in the quantity of indie movies being made. The American JOBS Act, passed in April 2012, offers hope to reinvigorate the independent film industry.

 

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FILMMAKERS, IT’S 2013. DO YOU KNOW WHERE YOUR JOBS ACT IS? Part 2


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FILMMAKERS, IT’S 2013. DO YOU KNOW WHERE YOUR JOBS ACT IS? Part 2 of 2

Michael R. Barnard

Michael R. Barnard

Written by Michael R. Barnard

Michael R. Barnard is a writer and filmmaker who has been researching the American JOBS Act since it was first proposed. Barnard is currently working on creating an independent feature film, A FATHER AND SON. He lives in Brooklyn, New York, and is the author of the historical novel NATE AND KELLY. Find him on Twitter at @mrbarnard1, Facebook at michael.barnard and LinkedIn at michaelrbarnard.

This article is an overview and observation, not legal advice.

 

SUMMARY: The independent film industry in America is not enjoying the growth that would be expected from the surge in the quantity of indie movies being made. The American JOBS Act, passed in April 2012, offers hope to reinvigorate the independent film industry.

 

           In Part 1, we discussed the reasons behind the difficulty raising equity investment. Continue reading

EQUITY CROWDFUNDING RULEMAKING APPROACHES SOON.


I was at a seminar this week that purported to be about the new EQUITY CROWDFUNDING, but sadly, the panel was populated by finance professionals whose disdain for those of us who are not “high end, high net worth” made the panel useless.

These types of professional fundraisers, coming from the status quo investment community, are not willing to acknowledge that the true value of EQUITY CROWDFUNDING is the escape from the expense, time and headache of pursuing Reg D exemptions and PPMs (“Private Placement Memorandums”). They collect monstrous fees to create those, so they have no respect for those who pursue crowdfunding as an entry to the financial world. Continue reading