Noah J Nelson on Monday, Nov. 2nd
The Security and Exchange Commission has come to terms with the reality of equity crowdfunding–aka small dollar investing–and set out a whopping 685 page rule set. Which is almost as long as the last RPG I bought off Kickstarter. Only these rules are designed to make you money.
That’s the idea at any rate.
Last week we talked with Ryan Feit of SeedInvest about what he was looking for from the rules. A quick check in with him on Friday found him giving the new set a “thumbs up.” Make no mistake: the rise of equity crowdfunding has a chance to make a significant change in the way that venture capital is raised in these here United States. It’s exciting–for reasons good and bad–and with the risks of investing come the chance that the playing field of venture capital might just get a tiny bit more leveled out. Maybe. (It’s worth the shot, anyway.)
VentureBeat has run down the top things you might want to know about the rules… but we are, as always, interested in how this is going to impact the creative fields. Here’s the short answer: it shouldn’t affect individual creative projects but it might come in handy when starting a studio or a production company. Why?
Because anyone who thinks they’re going to make a quick buck off of investing in a single creative project–like an indie film–is out of their minds.
Here are five things that make better bets than putting equity money into a single indie film:
- Gas Station Slot Machines
- Your Cousin’s Latest “Totally Legit” Import/Export Scheme
- A Franchise Of That Hot New Fast Casual Dining Concept You Read About On Eater
- McDonald’s Monopoly Game Pieces
- Trading Leveled Up Clash of Clans Accounts
(Yup, that last one is a real thing. Look it up.)
The same could be said of any single creative endeavor: graphic novels, albums, immersive theatre pieces. Sure there’s always a chance that you’re going to find the next George Lucas or J.K. Rowling… but between a would-be producer and the next great intellectual property is a sea of artistically worthy but financially disastrous projects.
So bite the bullet and give thirty bucks to a perks based campaign instead. At least that way you get a brand new T-shirt instead of losing the one you already have.
Now if someone came along and wanted you to invest in a new production company that had a business plan, clear development pipeline and accomplished talent attached? That’s another story entirely. (No, I am not looking to start one. But I have five dollars for the right person who is.)