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.
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
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.
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.
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
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
The Securities and Exchange Commission is accepting comments on how it will formulate rules for the new equity CROWDFUNDING act that was included in the JOBS ACT. (See my story on ReelGrok.com at http://www.reelgrok.com/jobs-act-crowdfunding)
This is important for indie filmmakers, since the ability to reasonably raise up to $1,000,000 from investors could reinvigorate the indie film biz.
FILMMAKERS, this is very important:
WHAT CONGRESS DID
The house has passed the Entrepreneur Access to Capital Act which offers a tremendous opportunity to rebuild the independent film industry. The Act is designed to allow businesses to raise capital through crowdfunding. Under current securities laws, filmmakers can only ask for donations, and donors support the film without any participation in its potential profit.
Image via Wikipedia
You know that your favorite movies, and even ones you don’t like, exist in an uneasy alliance of art and commerce. Movies have the potential to be both emotionally and financially powerful; sometimes one, sometimes the other, sometimes both. They brew in a caldron of artistic expression, profit potential, and career possibilities. Some movies find life solely because of demand for profit, and some find life solely because of someone’s passion for storytelling. Some come together for any number of reasons between those two ends of the spectrum.
Read about the making of the independent feature film NATE AND KELLY here:
Has a movie ever touched your life?
Here’s what I think specifically about MARKETING LOW-BUDGET INDIE FEATURE FILMS (NARRATIVE FICTION).
This is an effort to help visualize the numbers needed for this new world of filmmakers becoming responsible for their own direct distribution.