Crowdfunding Through Other Online Affinity Groups
Fan financing or crowdfunding is not limited to just bands or movies. It is already being applied to a variety of entertainment projects - wherever a large online affinity group exists.
Take for example FORMULA ONE TEAMS: Justin Wilson financed his F1 team through online stock sales to his fans, and was very oversubscribed (not enough stock to sell to everyone that wanted it). See: www.JustinWilson.com.
What about SPORTS FANS? Well, take a look at: http://www.myfootballclub.co.uk. Here is a football club in the U.K. owned by its online fans.
How about FASHION? Here’s a Web site allowing fashion fans the opportunity to finance a designer’s next extravaganza: www.catwalkgenius.com
How about thoroughbred HORSE RACING? Check out: http://www.racingshares.co.uk/ where the fans can share in their horse’s winnings.
So why is this new financial model of fan financing not being more widely used in the U.S.? The principal reason is that the world of online stock sales is a highly regulated environment. In the U.S., a company cannot take money from the public as an investment without registering with the SEC (donations are okay as long as nothing is promised). This makes it necessary to sell fully registered stock to fans in order to receive their investment in an entertainment project. Due to the complexities of registering with the SEC and its extensive financial reporting requirements, most companies have tried to avoid selling stock here, and perhaps this is why the companies named above are outside of the U.S.
MediaShares.com has perfected and has an issued U.S. Patent (# ) for our unique new method of Crowdfunding or Fan-financing. Our business plan includes licensing our patent to owners of entertainment projects seeking financing.
For many more examples of fan financing or crowdfunding, click on this link:
MediaShares.com would love your feedback on fan financing or crowdfunding of movies. Please respond to Gene Massey, the originator of MediaShares.com’s unique and U.S. Patented business method by e-mailing: gene@CinemaShares.com or by calling (310) 476-3668