But what exactly is crowdfunding, and how does it work? Well, until fairly recently, seeking a investment company or film financing companies for a movie or film would usually involve seeking out one of two large-scale investors, VC, or large equity investors. The process of raising movie investments to finance movies was often extremely difficult and time consuming, especially for first time filmmakers — not to mention dispiriting — as those seeking investors for movies often had to deal with countless rejections before finding the right investors. Have no fear, though. J.K. Rowling was turned down by everyone before her book was published and went on to become one of the world’s biggest movie franchises.
With the growth of the Internet, and most recently, the passing of the JOBS ACT III — allowing equity crowdfunding to non-accredited investors for the first time in history — a whole new opportunity has emerged. The Web enables aspiring entrepreneurs, including filmmakers, to present their movie ideas to literally millions of people who will buy rewards to accredited and non-accredited investors. Those who are interested each contribute an amount — as much or as little as they can afford in return for movie T-shirts, film set visits, DVDs and Bluray discs, extra and speaking roles, movie merchandise…you get the idea. No longer is it only the prerogative of the very rich and big investors to encourage talent and innovation in the film financing. Now almost anyone can reap the benefits of becoming involved in new and exciting film projects, with far less risk to each individual film investors.
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