Unless you live under a rock, you’ve probably been exposed to some of the promise everyone found in the Veronica Mars Kickstarter campaign. The democratization of film finance! People funding films they want to see made! We don’t need the studios!
A new accredited-only crowdfunding platform called Junction is taking a decidedly different approach to film finance. Rather than rejoicing in the disintermediation of traditional funding channels, Junction seeks to open these investment opportunities up to accredited investors. Junction CEO Adam Kaufman calls it the “smart money.”
There is a relatively small group of established, professional independent film financiers with the connections and skills to succeed. They are the “smart money.” These financiers make it their business to stay on top of the latest film projects. And they invest in the independent movies that they believe have the greatest chances of commercial success.
Films listed on Junction don’t need the funding. They’re already funded. The crowd is “buying economic exposure to the film from the financier who funded it,” getting some exposure to the film’s upside presumably without the risk of being a primary source of funding for a film that was already rejected by experienced investors. The goal: to “make the film finance market more efficient, transparent, and—most of all—inclusive.”
Junction’s team is an impressive mix of ex-bankers, lawyers, Googlers, media and film professionals. Advisors include Steve Wynn of Wynn Resorts, Path CEO Dave Morin, and Jason Blum, who is the founder and head of Blumhouse Productions. Blumhouse has produced films including Insidious, Sinister and all four Paranormal Activity installments.
The Wrap reports that one of the first projects on the site will be the film “A Hologram For The King.” Tom Hanks will play the lead role, and Silver Reel is financing the film.