SLAMDANCE FIRESIDE CHATS - ALTERNATIVE FUNDING METHODS
Yesterday, Slamdance presented Fireside Chat 2: Alternative Funding Methods for Indies. The panel started out reviewing some examples of methods that recent films have used to raise money, including house parties, sponsorships and advance DVD sales. Later, the discussion became more technical, addressing more advanced questions that arise from new, experimental funding models. Video excerpts of the panel follow below.
Get Creative Rubin and Dotson share some ideas for raising the value of a film by exploiting assets other than the feature itself. What these ideas all have in common is that they extend the experience of a film beyond the theater or DVD player, giving the audience more ways to interact with a film and more ways to pay for it. In many cases, it can be done without unreasonable increased costs. Planning for these additional sources of income when seeking funding can lower the risk and raise the potential value, making a film more attractive to an investor.
Rubin mentions a film that was funded by a sponsorship from an Italian jeans company. That film is Lives of Saints, as reported by the BBC.
Crowdsourced Funding Filmmakers with limited resources may turn to crowdsourcing, enlisting large groups of fans to each do a small bit of work to help the film. Recently launched sites like IndieGogo and Film Riot attempt to help filmmakers crowdsource funding. However, the Securities Exchange Commission enforces regulation of stock offerings, which presents a challenge to those wishing to raise money from many people.
One of the main goals of the SEC is to protect investors from corporate abuses. The regulations are intended to ensure that investors are informed of the risks of investment and receive accurate reporting of accounts. Public companies are required to follow strict accounting principles and regularly file statements with the SEC. Other companies, such as hedge funds, carry much greater risk and less reporting, but are limited to accredited investors, high net worth individuals who are assumed to be aware of the risks. Most others are limited to a small number of investors.
In the following video, panelists explain how IndieGoGo and FilmRiot attempt to raise money within the law.
