Crowdfunding a $4 Billion Market by 2020? Here Are 5 Companies Poised to Benefit
Jason Best of Crowdfund Capital Advisors estimates the equity crowdfunding business could be that big within four years, with these five companies in prime position to reap the rewards.
This story first appeared in the June 5 issue of The Hollywood Reporter magazine. To receive the magazine, click here to subscribe.
Fees: Issuers pay $2,000 or more for "due diligence, background checks," plus 5 percent for raising more than $1 million; 6 percent for less than $1 million.
Buzz: Filmmakers can raise cash for 35 to 120 days per film. Minimum budget: $100,000. Also for movie slates. (Schuyler Moore is on the advisory board.)
Fees: Five percent management fee and 5 percent profit share.
Buzz: Accredited investors only, typically with more than $10,000 to invest in projects needing $1 million to $25 million. Caters to those wishing to invest in several individual film titles from established filmmakers.
Fees: To be determined June 19.
Buzz: The company handles a large range of asset classes, which theoretically could include movies, though no filmmaker yet has tried. No limit on amount of investments, though minimums will be applied on a case-by-case basis.
Fees: Subscription model with a basic plan starting at $299 a month.
Buzz: Neil Young and Quincy Jones have raised money on this open platform, though not for films, which still are a small part of its business. Filmmakers may offer investors a share of revenue, even for flops.
Buzz: Already a well- known leader in rewards-based crowdfunding for film and TV projects (40,000 film campaigns have launched thus far), the company says it is considering getting into equity-based backing as well, whereas rival Kickstarter says it will not.