Want a Piece of the Movie Profits? New SEC Rules Could “Revolutionize” Crowdfunding
Considering crowdfunding for your next film?
The SEC has passed regulations implementing a streamlined securities registration process referred to as “Reg A+,” and it will change the landscape for film financing. These rules permit investment offerings (including for films) to the general public beginning June 19 as long as the following requirements are met:
➻ The offering cannot exceed $50 million within a 12-month period.
➻ The investors cannot invest more than 10 percent of the greater of (a) their annual income or (b) their net worth (excluding their home).
➻ The company making the offering (the “issuer”) has to complete a lengthy document containing detailed information in a format required by the SEC (“Form 1-A”). This document then has to be submitted and approved by the SEC before accepting any investors.