Equity Crowdfunding of Film—Now Playing at a Computer Near You

Prior the SEC’s recent adoption of a crowdfunding exemption to various securities regulations, the ability to crowdsource funding in exchange for equity in a given venture was hampered by legal requirements that often made the concept prohibitively expense. Gold’s Note first examines the crowdfunding exemption and analyzes its potential impact on the financing of independent film, before surveying securities laws before the exemption—specifically the aspects of the laws serving as barriers to equity crowdfunding and the rationale for the exemption. He then analyzes the JOBS Act and the rules promulgated by the SEC, explaining how the crowdfunding exemption works in practice, before focusing on film finance—evaluating the benefits and risks of the equity financing of movies, both from the perspective of the filmmaker and the potential investor.