An easier way to find funding for your film

More films these days are being funded by the power of the crowd – crowdfunding, in other words. The amounts raised can hardly be considered peanuts, considering “Art Machine” raised more than $26,000 using a crowdfunding platform. There are three major crowdfunding platforms available right now, including IndieGoGo, Kickstarter, and RocketHub.

The basic idea of these platforms is that creators (film companies, independent creators, etc) ask every day people for small – or large – donations to fund the project.  Investors receive some return on their contribution, like swag, tickets, or cameos in the film, and the reward may change based on the amount funded.

These platforms are used for projects other than films, too – from plays to books to small business ideas.

IndieGoGo, according to its About Us page, is “Founded on the principles of opportunity, transparency, choice, and action. IndieGoGo launched in 2008 to provide any idea (creative, cause, or entrepreneurial) the tools and process to raise money, offer perks, and keep 100% ownership.” The best thing about IndieGoGo is that it’s worldwide, in over 136 countries. You can use IndieGoGo as long as you have a bank account. IndieGoGo does not require all-or-nothing funding, but charges more in fees if you fail to reach your goal. If a creator’s goal is met, IndieGoGo keeps 4%. If the project fails to reach funding goals, IndieGoGo keeps 9%.

Kickstarter requires all-or-nothing funding. “Kickstarter is powered by a unique all-or-nothing funding method where projects must be fully-funded or no money changes hands.”  The theory there is that it’s less risky for everyone involved. As of right now, only people with a U.S. bank account and address may start a project.  Over 2,500 films have attempted crowdfunding via Kickstarter with about 45% of them being successful in raising their goal amounts. Kickstarter keeps 5% of the total raised.

RocketHub “is a grassroots crowdfunding platform.” Their site states they provide the credibility and infrastructure necessary to successfully leverage the financial power of your community and launch creative projects and endeavors. Like Kickstarter, RocketHub requires all-or-nothing funding. RocketHub takes 8% of the total funds raised.

These three crowdfunding platforms are all widely different in how they implement crowdfunding, but the main theme is that they allow you to raise necessary capital for your film project.  Many projects can now come to fruition that otherwise would have languished due to lack of funding.