funding questions and ideas

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whosnext504

New member
Im a film maker new to the biz. Im looking for ways to raise money for equipment.
Im looking to buy a Canon VIXIA HF S11 w/ some accessories. It will be used to shoot my web series.
I have came up with what i think is a good start on fund raising. please give me your feedback and any ideas you may have.


check it out and tell me what you think:
http://www.audiolife.com/Store/Werenewatthisproductions

Thanks in advance everyone
 
I'm just learning about this too.

It's illegal to raise money for your project outside of your family. In addition, the "general solicitation" of potential investors is illegal. Also, you would need to file with the SEC and have an attorney draft reams of documents for you and your investor, who would btw have to be an "accredited investor". Even if you're only asking for five dollars, the same laws apply. When you're "raising money" for a media project what you're actually doing is selling securities.

Now if you're just a guy who wants a camera and wants people to give him money to buy his camera, I think you can ignore most of the legalese. But if you in any way imply that you're looking for someone to "invest" in your project, what follows is easliy prison time.

The one way that I see around the "investor" legal drama is to take on producers. Someone gives you 500 dollars and now they're a producer on your gig. But, of course, producers themselves require legal documentation and typically will have some say over how the production progresses.

PS selling T-shirts is fine. Good luck! :D
 
It is illegal to solicit someone to invest in your project, with you promising them a share of the return, without properly registering your securities with the SEC. If you follow all the appropriate processes then you can raise money from certain selected individuals (there is a limit on the number of investors you can approach, unless they're "accredited investors"... anyway, if you want to go that far, you should look up the appropriate securities laws.

If you are "asking for money", as in a donation, you can ask for that all you want.
 
here is an idea

here is an idea

if you are shooting some sort of feature.. why not approach some businesses in that area and sell commercial "product placement" ads.. For ex. you could take Pops general store and use that area/store in part of your film for "X" amount .. you are selling advertising. and not asking for an investment. therefore not promising anyone anything such as a return on your film.
 
I have been some research on this for my own project and I think avoiding the word "investment" is crucial to avoid all the legalities. A combination of asking for money from "investors" and, as mentioned by n1c02, "product placement" ads would be a good start.
 
Yeah this is why I used to get like 4 calls a day from various companies and people about investing in their films, inventions, or whatever scam they were trying to sell me on (most of the time). If you're an accredited investor you get bothered constantly with that kind of crap once they get your number.

Just be careful how you raise the money, as was said, donations are fine, but otherwise it becomes an issue.
 
Drilonl89 said:
I have been some research on this for my own project and I think avoiding the word "investment" is crucial to avoid all the legalities. A combination of asking for money from "investors" and, as mentioned by n1c02, "product placement" ads would be a good start.
Click to expand...

No matter what you call it, if you're offering people a return with profit on money they give you, then it's an investment in every legal sense.
 
Drilonl89 said:
So, is it a matter of wording and setting their expectations?
Click to expand...

If you sell advertising, you'll have to deliver the ads to the eyeballs the clients have paid for. If for any reason you don't release your film to the audience you've promised will see it, you'll have to give the money back, if not legally then morally. It's not just a matter of wording - if you want people to give you money to make your film in return for the chance of making it back and perhaps with some profit as well, you'll have to jump through all the hoops. It doesn't matter what you call it - if it looks like a duck and quacks like a duck .....
 
Steve House said:
If you sell advertising, you'll have to deliver the ads to the eyeballs the clients have paid for. If for any reason you don't release your film to the audience you've promised will see it, you'll have to give the money back, if not legally then morally. It's not just a matter of wording - if you want people to give you money to make your film in return for the chance of making it back and perhaps with some profit as well, you'll have to jump through all the hoops. It doesn't matter what you call it - if it looks like a duck and quacks like a duck .....
Click to expand...

Thanks for the insight, I really appreciate it.
 
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