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Professional Motion Picture Production and Distribution NEWS
| Announcing FilmFunder, Here to Redefine Crowdfunding for Professionals By StudentFilmmakers.com posted Apr 16, 2013, 12:40 |
Now announcing FilmFunder, the first platform geared specifically towards film professionals. The crowdfunding phenomenon has quickly taken on a prominent role in the vast landscape of film production and finance. Already this year, the Academy of Motion Pictures Arts and Sciences has lauded two crowdfunded projects with filmmaking’s highest honor. In addition, the “Veronica Mars” movie, based on the popular TV series, rose over $2 million dollars in just twelve hours on Kickstarter. Now FilmFunder enters the scene to bring crowdfunding to professional educated investment in motion pictures to get the entertainment industry back to work for good.
Currently, the prerequisites for listing a project on a crowdfunding platform, such as Kickstarter, are minimal. As a consequence, the market has become crowded with projects of all types and quality seeking financing.
FilmFunder entered the crowdfunding space because motion picture investment is a prime target for crowdsourcing due to each film’s startup-like structure and relatively short exit period, typically 12-18 months. However, the number of motion pictures seeking funding in any given year is greater than the typical number of startups in other industries. Therefore, it’s to be expected that motion picture crowdfunding be fraught with overcrowding and unsuccessful campaigns.
Today, FilmFunder brings to life the vision of a carefully curated crowdsourcing platform that would focus only on the most developed film projects. FilmFunder’s goal is to create a symbiotic relationship between investors and producers, allowing a higher project success rate and recurring participation by investors.
“Producers have been unsure of many crowdfunding platforms due to the ‘closed door’ nature of the film development industry,” said Jude Tucker, feature film producer and creator of FilmFunder. “We worked hard to create a platform that preserves the traditional fundraising methods, but streamlines the process for the future of motion picture finance.”
Each project is seen only by investors or investment firms, not by all members of the platform. This gives all producers a safe place to conduct business and get their projects into production, creating much needed jobs in the film industry. Additionally, producers often incur the costs of generating sales estimates or legal documentation during the fundraising process. FilmFunder can assist by providing forms and tools that producers can use as a starting point in creating these documents, allowing more time for creativity.
In another new crowdfunding advance, FilmFunder also mandates that each project supply certain documentation to enable investors to make educated decisions about their investments. Each project will include a significant amount of due diligence material so that potential investors can make their investment decision without a long due diligence process. The platform also includes a rights tracking tool to assist in accurate reporting and distribution of revenue to each investor involved with a FilmFunder project. Finally, all projects submitted through FilmFunder will be issued a completion bond and insurance to provide additional investor protection.
Investing in a film should be simple. FilmFunder automates the process to allowing for quick and painless investment transactions. To maintain a high level of quality, all project applications will be carefully reviewed and vetted by a team of two pre-qualified, bond-approved line producers, or “FilmFunder Ambassadors.”
Starting on April 16th, FilmFunder is accepting the first project applications from motion picture producers. In early May, accredited investors will be permitted to browse and review projects for investment. Once the SEC fully activates crowdfunding, FilmFunder projects will be open for investment to all individuals.
FilmFunder was created by active film producers, Jude Tucker and Stephen Fiske. The FilmFunder office is located in the heart of the entertainment industry, Hollywood, CA.
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