Crowd Funding vs. Hybrid Film Financing

There’s seems to be all kind of fuss lately about ‘new’ film financing models such as Crowd Funding. And for good reason! Independent Producers are making real headway financing their films this way. Almost every day I hear of a new case study of someone successfully raising money for their film utilizing crowd funding methods- the most popular way being by making a video presentation and placing it on a site like Kickstarter….but I’ve also seen some really impressive individual websites with video presentations on them.

So the question then arises….

CAN YOU FUND YOUR ENTIRE BUDGET WITH CROWD FUNDING ALONE?

The answer is YES…and NO.

Yes, there are definitely some producers accomplishing that (in my experience, most of them have budgets way under $1 million).

And No because in reality, MOST of the cases I hear about use Crowd Funding to supplement other traditional film funding methods. But that’s still great news! Imagine instead of having to find a gap or bridge loan from a bank, you could bridge your own gap with some crowd funding? Or how about raise finishing funds….or P&A funds….or even a Film Festival fund for your film?

And that brings us to >>>>> The HYBRID Film Financing Model whereby you should really be thinking of Crowd Funding as a way to buttress other traditional funding methods. Think about it like this… in today’s market you need to be as CREATIVE as possible when financing your film, and that means you need to be open to cobbling together financing from several different sources.

Thomas Mai & I talked about Crowd Funding and Hybrid Funding a lot last month at our Micro Major Berlin Workshop, and will be delving into it even deeper during our upcoming MICRO MAJOR LONDON 3-DAY INTENSIVE TRAINING, May 7-9 in London.

(By the way, if you would like more info on MICRO MAJOR LONDON 3-DAY INTENSIVE and to take advantage of the early bird tuition AND bring a friend or colleague for free *until March 15 only*, just CLICK HERE).

And otherwise, I’d love to hear YOUR thoughts on Crowd Funding vs. Hybrid Film Financing Models. Any success stories? Questions? Comments?

I’ll try to get some links to sample Crowd Funding videos posted up too!

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Comments

  1. says

    I’m making an epic sci-fi movie called “Kaleidoscope Man” and aiming to raise £200,000 via crowd funding. It’s only been running for 2 days and already I’ve found some takers – still a long way to go but feeling mighty optimistic. For the first time in years MY destiny is in MY hands and that feels great!! Do check out my website and watch the video: http://www.k-man.co.uk

    Many thanks Stacy!

  2. says

    Wow Lizzie and Simon great stuff! Feeling a little impish shooting for $1,800 for the Billy Syko Open but none the less, I’m using a crowd funding site called Kickstarter.com to help raise the funds for production of my project.

    Official Web site:

    http://www.syko.tv

    Direct Link to Kickstarter Updates:

    http://www.kickstarter.com/projects/syko/billy-syko-open-0/posts

    Direct Link to Kickstarter:

    http://www.kickstarter.com/projects/syko/billy-syko-open-0

  3. says

    Crowdsourcing seems the most popular technique for indie film makers to raise funds at the moment and a great example of how digital media and technologies are helping first time auteurs realise their vision on their terms. The Lord of the Rings fan film Born of Hope raised fund this way too i think, and thats a damn impressive production!

  4. says

    I agree, I don’t think it can be a single funding source situation anymore for the super indie producer. But the really exciting thing about the possibilites that are being realized with digital fundraising and promotion is that to a greater and greater extent it’s completely unnecessary to go crawling to anyone when you want to get your movie made. It’s a great day to be an indie moviemaker.

  5. Sonja says

    Is there a rule of thumb, how much crowd funding costs the producer in terms of accounting and documentation responisbility towards the investors?

  6. Pierre Samuel Rioux says

    Hi
    In some country this way to get the money is not Legal so the first ting to look is there.
    In Canada get well informed before because it’s could cost you 100,000 to 200,000 to be legal.
    My point of view is stay a way of this if you are Canadian.

    • says

      Dear Bloggers:
      Creative financing is a major concern that we, at Mel Hoppenheim School of Cinema, Concordia University Montreal, try to instill into our students, especially those individuals whom are planning to produce their own art cinema kind of work, what ever that may be. We teach a graduate course in film production, titled Developmental Stage/Phase Filmmaking, we try to address the needs of our students with state and federal financial agencies, as well as, more private avenues that require some intelligent self promotion and project advertisement. With that said, we could start such a dialogue about a very difficult subject, as to how do we, independent filmmakers, finance our own movie projects, without going bankrupt in the process? Good luck with the debate. Bye!
      Truly yours (at your disposal for Q & A),
      George Maynard, BSc, BFA, MSc, MFA, Graduate Level Film Production,
      Mel Hoppenheim School of Cinema, Concordia University, Montreal QC.

  7. says

    Hi Stacy:

    I’m just getting into the world of raising money for my film, and I wonder iif you could provide links to those “…but I’ve also seen some really impressive individual websites with video presentations on them” that you mention in your post?

    Thanks for the great articles.
    Lakshmi

  8. says

    This is a great post – but I just want to point out that crowd-funding isn’t as easy as it sounds. I’m trying to raise money for the printing of a series of books for toddlers to help them build cognitive skills (worldoflil.com) – which, I know isn’t a film, but still has the principles – and once you tap your family and friends the big challenge is – how do i get anyone not associated with me already to jump in? Or even to become aware of the project. Questions such as this need to be answered before you start your raise… I tried to do this to the best of my ability and am still just 1/3 raised with about 35 days to go via kickstarter. It’s not as easy as ‘build it and they will come’.

    The sites out there for crowdsourcing, such as Kickstarter or IndieGoGo, are great – and they allow anyone with an amazon account already set up to make a payment or pledge rather easily – but you still have the step of having to sign up for their site. I think once they figure this out (ie, allow users to make a pledge without signing up for their site) it will increase the amount of people who make a pledge. Because most of our family and friends aren’t heading back to donate. They are one and done on our project – and if it isn’t mindless and two clicks away they aren’t going to do it.

  9. Peter E. Jackson says

    Stacey

    Not sure if you saw this posting on Crowd Funding. If not, I thought I would pass it along to you.

    SEC Insight into Film Crowdfunding Via a Public Securities Offering

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