How much impact can crowdfunding sites have on the $22bn global investment business? Colin Brown taps into the key sites for Screen International - and discovers life beyond Kickstarter donations. Are micro-equity investments and micro-licensing the future of film financing?

1. feature focus
also allows campaigns to receive all the have gone out of their way to steer clear
money pledged, whether or not the ini- of selling securities,” Steele continues.
tial funding goal has been reached “Nevertheless, they have the infrastruc-
“Campaigns on average will get 20% ture to segue into a post HR 2930 world
from strangers,” explains Rubin. “Some as a securities brokerage. But, speaking
campaigns will get 90% from strangers as somebody who also advises media
and some won’t get a dollar at all. To get technology companies, they would be
exposure from IndieGoGo and stranger wise to wait for the IRS to finalise the
dollars, you want to have a high GoGo- rules and regulations spelling out who
Factor — a custom algorithm which can or can’t participate and what the
tracks how active every campaign is brokerage requirements are.”
based on comments, funder updates, Steele believes far greater potential
promotions etc. Based on the 50,000 lies in innovative micro-licensing sites
campaigns on IndieGoGo, the typical such as SoKap.com that allow produc-
tipping point to start getting stranger ers, authors, musicians and game
dollars is when the campaign has developers to raise project funding by
reached 30%-40% of the funding goal.” pre-licensing their distribution rights
IndieGoGo counts among its suc- on a hyper-local level. For example, a (From left) Kickstarter the value chain of the products they
cesses this year’s audience award win- film-maker could license the rights to founders Charles Adler, Perry support,” Steele suggests. “Traditional
Chen and Yancey Strickler
ner at the Tribeca Film Festival, Give Up market and distribute a film in just prints and advertising costs, which are
Tomorrow, as well as international pro- Santa Monica or across all platforms in prohibitively expensive, will become
ductions such as UK documentary California from which they will receive much more coveted word-of-mouth
You’ve Been Trumped and Japan’s Hafu. an off-the-top distribution fee on sales. campaigns, the onus of which falls to
A partnership with the UK’s Sheffield “This allows fans, merchants, early- the local distributors, not the producer.”
Doc/Fest means the site also hosts a adopters and taste-makers to monetise Welcome to the film industry’s Face-
whole day of live crowdfunding pitch their social networks and participate in book era. ns
Oscar-shortlisted Battle For Brooklyn raised funds on Kickstarter sessions staged during the festival.
How much of a dent will this all
Online film festivals
online funding draws a crowd
make in the $22bn annual film invest-
ment marketplace? That depends on
the scale of production. “For the inde- There are dozens of consumer- Unifrance and AlloCiné partnership
pendent film-maker, disruption is focused web-streaming sites that MyFrenchFilmFestival.com
How much impact can crowdfunding sites have on the $22bn global investment already happening,” suggests Shooting cater to all manner of niche and
People co-founder Cath Le Couteur. mainstream markets. There is the for a feature, $1.30 for a short, or
business? colin Brown taps into the key sites
But for larger films, crowdfunding’s ad-supported Babelgum platform, the entire slate for $18.40. For next
future may pivot on the Entrepreneur for example and there is also year’s event, SnagFilms will have
a
mong the 15 documentary fea- opted to pledge $25 in return for a raised but also about the supporters you Access to Capital Act, HR 2930, now MUBI (formerly The Auteurs) the exclusive US distribution rights
tures shortlisted for the ‘thank you’ credit and regular e-news- bring to your project going forward. I under review in the US Senate. If that proudly points out “our film for VoD to cable, satellite and telco
Oscars are two that received letter updates. personally feel very invested in all the approved, the law would allow crowd- library is brimming with visionary video providers.
some of their financing through online There have been more than 4,000 crowdfunding campaigns I have con- funding to include equity investments films that wouldn’t fill a single Unifrance, the munificent French Naturally, there is a competition
crowdfunding. Battle For Brooklyn and successfully funded film and video tributed to and would be far more likely in projects, and not just donations. cinema in Belgium for a week — film promotion association, and the element too, not to mention the
The Loving Story both raised finishing projects on Kickstarter since it was to pay money to see them in a cinema or Projects could raise up to $2m, in no not a single day”. online Paris film directory AlloCiné. usual complement of exclusive
funds through Kickstarter, one of as founded by Charles Adler, Perry Chen give other kinds of promotional support more than $10,000 increments. And, of course, every major According to Unifrance general interviews with the film-making
many as 250 platforms that offer film- and Yancey Strickler in 2009. Those down the line.” “The good news — and the bad news festival now comes equipped with director Régine Hatchondo, this is talents.
makers and other creatives a chance to projects have raised more $41m in com- For all the attention garnered by New — is that no restrictions online screening rooms. Some, “the first online festival accessible Six prizes are awarded at the
pitch for small donations from friends bined pledges. That figure breaks down York-based Kickstarter, its donations have been placed on such as Tribeca, even try to mimic all over the world”. end of the festival (three for
and strangers alike via personal videos. as follows: $13m for narrative features require a US bank account. There are no what types of compa- their real-life avatars by introducing The second edition, which will the feature films, three for the
These online appeals are posted on including a direct-to-DVD release of ‘A successful such geographic limitations for its San nies can raise capital in an element of exclusivity: users are run from January 12 to February shorts): the internet users prize,
the website alongside a description of Hal Hartley’s Meanwhile; $16m for Francisco rival IndieGoGo, the leading this manner,” observes asked to reserve their free tickets 1, will premiere 11 features and 11 the foreign bloggers prize and the
the project and an escalating list of documentaries; $8m for shorts; $2m Kickstarter global platform for crowdfunding film-finance expert Jeff to films that have only three to five shorts from emerging French- international press prize. There are
rewards that come with different pledge for web series; and $2m for animation. campaign is not projects of all kinds, including charita- Steele, who spear- screening windows each. A limit language directors — as well as one no cash prizes at stake. However,
levels: a T-shirt, a DVD, a digital down- “Kickstarter is really the latest itera- just about the ble causes, that has also distributed mil- heads Film Clos- is put on the number of virtual French cinema classic. Widening the audience-award winner will be
load, an invitation to the festival pre- tion in the long history of arts patron- lions of dollars since launching in 2008. ings. “So it’s a seats per window. the definition of French cinema, featured on SnagFilms after the
miere and so on. age,” says the site’s communications money raised “We have hosted over 50,000 cam- wide open field Now comes an online that menu includes two titles from event. And all three of this year’s
Battle For Brooklyn received $25,506, director Justin Kazmark. but also about paigns,” says CEO Slava Rubin. “As for innovation — talent-spotting showcase that Quebec. feature films category winners —
which was then enhanced with a As Shooting People’s Ingrid Kopp the supporters long as you have a bank account, there and corruption. has its own window in the This is not simply a promotional Qu’Un Seul Tienne Et Les Autres
matching grant. The Loving Story, points out, the value of crowdfunding are no restrictions on locations for “Gifting sites festival calendar, but no actual exercise, however. French film fans Suivront, Tout Ce Qui Brille and
which needed cash to meet the costs of extends well beyond the dollar you bring to project owners or funders. We are open like Kickstarter allegiance to any physical must pay for the privilege. In the Espion(s) — were screened on
a hefty licensing tab for archive footage amounts. “A lot of film-makers have your project’ to 200 countries.” and IndieGoGo event. MyFrenchFilmFestival. US, the first showcase this January board all Air France planes for six to
and music, secured $15,383 towards realised that a successful Kickstarter Ingrid Kopp, IndieGoGo’s 4% cut of money raised com is a partnership between had the following rate-card: $2.60 nine months.
post-production; most of its backers campaign is not just about the money shooting People is lower than Kickstarter’s 5% and it Give Up Tomorrow
n 32 Screen International December 16, 2011 www.screendaily.com www.screendaily.com December 16, 2011 Screen International 33 n