That includes yours truly. So many of them, in fact, that I presented some of our lessons learned for UP Summita conference last weekend where startup coaches from all around the world gathered to talk entrepreneurship.
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Christopher Schiller May 13, Following the great suggestions made by many of the columnists hereyou may be considering writing and producing your own short or feature.
Even calling on every favor and friend you have, there will likely still be a need for extra funding to complete the project. Many approaches are available to fill those gaps.
One that has great potential and might look attractive to your needs is crowdfunding some or all of your budget. Though it can be a successful route, there are many potential pitfalls, legal caveats and business issues of which you should be aware before they unpleasantly surprise you and derail your production dreams.
Seemingly the current rave with everyone you know dabbling in it, crowdfunding is still an incredibly new phenomena, still figuring itself out, morphing, experimenting and failing sometimes. Even the old man in the game, Kickstarter has only recently celebrated its fifth anniversary.
Which Flavor of Crowdfunding is Your Favorite? There are lots of different approaches to crowdfunding, with lots of different organizations serving those approaches with more coming and going all the time.
The product or gifts are an afterthought or extra and are not reflected in the money being donated.
These crowdfunding approaches are usually only available for not-for-profit fundraising and are unlikely to be available to general filmmakers. There has to be an exchange of something of actual worth for the money donated.
The premium prices for the goods are an acceptable overcharging to allow the funded to take their profit and succeed in their goals. If the price to object The issues and benefits of using crowdfunding is too far in either direction there are problems. Even though Kickstarter hates to be referred to as such, it is more like a high priced store than any other analogy.
There are no or incidental premiums offered. This is a security relationship and therefore a government regulated one. This type of crowdsourcing needs to be managed according to the regulatory body that governs that investment mechanism.
Differentiated from the much stricter and more regulated equity financing in general, equity crowdfunding is just about to become available in the United States as part of the CROWDFUND Act recently passed and signed into law.
Once implemented a much broader swath of potential investors will be available. Similar schemes are offered as a funding source in some other countries though the concept is still new enough that those few that offer it are still figuring out the kinks.
Even between these broad approaches there are specialists and generalists, all or nothing or cumulative cash, curated or all comers, value added or one offs. Generalists and Specialists — Some crowdfunding sources take nearly all types of projects, under broad categories of interests.
These Generalists can benefit filmmakers to a degree in having a higher volume of visitors making it easier to be seen and providing more familiarity and confidence with the public making contributing to projects feel less risky.
On the other hand it is easy to get lost in the crowd with a lot of options around you. This is where the Specialists can offer a more focused and thematically similar offerings for the prospective public funder. But being in a crowd where everyone looks alike with similar projects can be just as difficult for the individual project to stand out.
And specialist sites have much less traffic so it will be up to the filmmaker to bring the potential audience to the site and convince them it is a safe place to put their money in order to help your project.
All or Nothing vs. Cumulative Cash — Many of the most popular crowdsourcing sites offer an All or Nothing approach. The risk is that you may put in a considerable effort during the campaign trying to reach your funding goal and in the end have nothing to show for it. A reset is not always a bad thing.
Comparatively, some sites offer a Cumulative Cash approach which, for a usually higher percentage fee, allows the filmmaker to take all the money pledged during the crowdfunding campaign.
This might be attractive to a filmmaker because they at least get something for all the effort put forth. But this approach must be done with care. Curated or All Comers — Some sites are Curated meaning they evaluate each proposed project to see if it lives up to a criteria set up by the crowdfund organizers.
Someone judging whether you are worthy may be daunting but it serves many goals. It makes sure that the selected campaigns are all of sufficient caliber and have certain criteria in common. Those sites that take All Comers or have very low criteria in evaluating projects leave it to the project leaders themselves to prove their legitimacy and trustworthiness to prospective funders.
Value Added or One Offs — One other variation amongst crowdfunding sites is those that provide a Value Added experience. That is they not only offer the crowdfunding service but also offer some additional services that make it a one stop shop for the needs of the project.
These can be additional options for fulfillment services necessary in every successful crowdfunded campaign, especially the large ones or for filmmaker specialist crowdfunders some offer opportunity of marketing and distribution options to successful campaigns.
As opposed to the One Off crowdfunders, who leave you to your own devices once the campaign funds are distributed, it might be attractive to have the option for additional services from the same resource. Watch Your Step Each type of crowdfunding has particular issues that can be troublesome to the unwary.Medical crowdfunding — using social networks and media to raise funds for medical treatment — is growing in popularity and visibility.
Recent examples include an American university student.
Ethical issues complicate the benefits of medical crowdfunding. February 02, Print. By Jeremy Snyder. Medical crowdfunding — using social networks and media to raise funds for medical treatment — is growing in popularity and visibility.
For instance, in the rare event where a filmmaker might find him or herself using charity based crowdfunding, there is the predominant issue of abiding by all the rules and requirements of .
A clearer case of modern crowdfunding is Auguste Comte's scheme to issue notes for the public support of his further work as a philosopher. The following are non financial benefits of crowdfunding. By using crowdfunding, creators also forgo potential support and value that a single angel investor or venture capitalist might offer.
Medical crowdfunding — using social networks and media to raise funds for medical treatment — is growing in popularity, but raises several ethical issues.
Jul 01, · When Congress passed President Obama's JOBS Act in March , one of the most intriguing provisions would enable crowdfunding—the ability .