EXCLUSIVE: Matthew Modine is the latest celeb filmmaker to seek funding via crowdsourcing with his just-launched campaign for The Rocking Horsemen, a 1960s-set music pic about five high schoolers who hear the emerging sound of rock ‘n’ roll and decide to form a band. But he’s not following the likes of Zach Braff and Spike Lee down the Kickstarter yellow brick road. Modine, who wrote and will direct the film, is using Slated, an online platform/marketplace launched last year, to raise just his under-$5M budget. (Check out his Slated project here.) Unlike backers on Kickstarter or Indiegogo who typically receive small rewards of sentimental value in return for donations, Modine’s Slated investors will get the opportunity to participate in a meaningful financial way as equity investors, owning an actual piece of the project they’re investing in.
In the brave new world of film financing wrought by big-name campaigners like Braff, Lee, and the Veronica Mars gang, donation-based Kickstarter and similar crowdfunding ventures aren’t win-win for everyone. Fans throwing cash down in exchange for “perks” don’t benefit monetarily from becoming Kickstarter donors. Even Indiegogo, which unlike Kickstarter allows filmmakers to take home funds even if they don’t reach their posted fundraising goals, isn’t the most viable option for mid- or higher-budgeted projects, particularly those lacking in name stars or sizable fan support. Equity film crowdfunding, on the other hand, was made viable by the 2012 JOBS Act which allows for the solicitation of accredited investors by entrepreneurs and start-ups. Since the SEC is still finalizing regulations on exactly how that’s to be implemented, platforms like Slated — and others in the works — can’t yet broker monetary transactions themselves. But they can match-make filmmakers with financiers, who can then privately seal the deal.
Slated, then, is less a Kickstarter peer and more akin to an OKCupid for film financing: a gated online marketplace intended to connect like-minded filmmakers, investors, sales reps, and other industry figures with the ultimate goal of financing indie projects of a certain size. (more…)