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.

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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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