Last time, as you remember, I wrote of IndieGoGo, a Filmmaker / Financier Hub site that looks promising. I've seen several of these projects over the past few years, configured to hopefully help filmmakers raise their needed funds online.
None so far works better than my ongoing system of Prospects and Investor syndicates. Sorry to mention that, but it's how I'm used to working, and because it works well, it's my benchmark.
Some weeks ago, IndieMaverick from the UK was announced, promising to connect Filmmakers and their projects, with Investors, who are able to invest small (>$25US) amounts in their chosen projects. Funds are only released to the Filmmakers once monies reach a predetermined budget threshhold.
Film profits (if any) are split 70 (Investors) / 30 (Filmmaker).
IndieMaverick receives none of the sales revenue. Filmmakers maintain creative control, and can sell the project to whomever they want.
IndieMaverick can offer the film as online download, after it has completed its theatrical or DVD distribution run. Every investor receives a limited edition DVD of the film.
IndieMaverick makes its money from online advertisements, paid upload charges, and by investing as-yet-unused monies at interest.
A problem I can see, as can anybody who's ever financed a whole feature from money dribs and drabs, is just how long it can take to accumulate $100 - 250k, especially in denominations as small as $25. A looooooooong time.
Another problem is, wherever money accumulates, so do parasites. So...
- Who's keeping track of all those tiny $25 lumps?
- How can revenues be steered and audited safely, so Filmmaker and Investors get proper divvies?
- How is movie-completion guaranteed?
We'll know these bold film financing experiments are taking off, when established name-Actors and Directors sign on, to do even modest projects. Their cachet will help attract Investors, but at >$25, will there ever be enough of them?
I wish them every success, but I'm not changing how I raise money, yet.
Film Financing
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