Did you know that when you raise money to make a movie you are subject to the same Federal Securities Laws that govern any business transaction? It's a huge deal and incredibly important for every filmmaker to know how to navigate these laws so that you can protect your investment and your movie.
This Thursday at 1pm PT, entertainment attorney and a former member of The Securities and Exchange Commission, Cathie Saadeh, is hosting a webinar to teach you everything that you need to know about this important topic.
Here is a link so you can register now: https://www.stage32.com/webinars/All-You-Need-to-Know-About-Federal-Secu...
Doesn´t a crowdfunding website (like Go Fund me) take the responsibility for this? (just curious, as an actress)
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Crowdfunding through Kickstarter, GoFundMe, and similar platforms where people contribute and get a t-shirt, poster, etc. isn’t selling securities. It’s when a person puts up money for a share of profits from a film (but doesn’t have any part in making the film) that a security is being sold. Whenever that happens, federal laws apply. State “Blue Sky” laws also apply (so-named from the idea that some investment schemes are so speculative they “have no more basis than so many feet of ‘blue sky’”).
An EQUITY crowdfunding platform like WeFunder can act as an intermediary between a filmmaker and investor. Changes in securities laws opened up this type of crowdfunding, which now lets more people participate in film finance as investors. But the filmmaker behind the production offered for investment is still responsible for not defrauding investors. That’s why it’s crucial to work with experienced legal counsel to finance films.
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@danejohnson Thank you so much! That is very well explained! And interesting