What SEC’s Approval of Title II of the JOBS Act Means for Indie Filmmakers

By V Renee, NoFilmSchool
Securities and Exchange Commission
The Securities and Exchange Commission (SEC) voted on Title II of the JOBS Act this last Wednesday, with a 4-to-1 vote in favor of lifting the ban on “general solicitation of private placements to accredited investors.” Basically that means that previous to this legislation, filmmakers, producers, or whomever was looking to get their film projects funded (or any other small business) were required to meet with potential investors individually. Now that the ban is lifted, those wanting funds may “advertise their fundraising publicly” as long as investors are accredited through the SEC. What could this possibly mean for independent film?


According to Slated, who posted a great article on the topic, “tweeting, Facebook postings, press mentions, even billboards on Sunset Boulevard will be legal,” and would amend the 80-year-old regulation. Perhaps the ones most affected by the ruling are those who wish to crowdfund their projects through government registered ”funding portals”. There are still 60 days until filmmakers can advertise, and those interested may have to fill out “Form D.”

Here’s an excerpt from the full brief (pg. 81 if you’re curious:)


We believe that it is reasonable to conclude that allowing issuers to have wider access to accredited investors by eliminating the prohibition against general solicitation for a category of Rule 506 offerings will significantly improve their access to capital and potentially enhance capital formation and lower the issuance cost

As for Title III, we have to wait until next year for the ruling — which is unfortunate considering that it would allow investors to forgo having to be accredited by SEC. But, the good news here is that your reach as filmmakers is growing even further, and the potential capital you could be earning by crowdsourcing is just going up with this ruling.

What do you think? How do you think the SEC’s decision on Title II & III of the JOBS Act will affect filmmakers?

Links:

Related Posts

  1. Indie Film Financing is About to Change Forever in America: Crowdinvesting Bill to Be Signed into Law
  2. What if Everyone Could Profit from Crowdfunding — Even Backers?
  3. Distrify Looks to Empower Indie Filmmakers with Internet-Based Self-Distribution Tools
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About Winter Film Awards

Winter Film Awards (WFA) is a volunteer-run and operated celebration of the diversity of local and international film-making. Our Mission is to recognize excellence in cinema and to promote learning and artistic expression for people at all stages of their artistic careers with a focus on nurturing emerging filmmakers and helping them gain recognition and contacts to break into this difficult industry. We pride ourselves on our diverse collection of Festival selections, allowing our audience to enjoy films they normally wouldn’t think to seek out. WFA is a minority- and women-owned registered 501(c)3 non-profit organization.

Posted on July 13, 2013, in Filmmaking Tips & Advice and tagged , . Bookmark the permalink. Leave a comment.

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