We finished a 4 minute 3D proof of concept along with the the written stories for the first 5 episodes and signed the writer, screenwriter, (both with major credits), and an the animation studio that has 2 Emmys. We budgeted for introduction of the new rebuild on the characters and a sizzle reel... which the production studio felt sufficient to get us a distribution agreement.... Sounds good right?
Well on a crazy impulse, I sent a one page overview of the project to, arguably, the world's most accomplished producer of animation... when a member of STAGE32, strongly suggested that... "anyone doing animation should study and follow him"... Sent on Thursday and answered on Friday with the request for a one hour Skype on Monday.
The producer has agreed to sign on for two years as executive producer of Boo's PaperWorld(c) and laid out what we need to have finished before he takes it to distribution. So our initial budget has grown to one million five hundred thousand dollars. Based on the strength of the story and the talent involved, we were in final talks with a two person investment company before one of the two got a severe case of the virus and was hospitalized...
So here I sit with everything in place that I only imagined might happen, with my pant pockets looking like rabbit ears... any ideas?
PS: We would never have this producer, if it weren't for the valuable insights shared on STAGE32.
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Rob Kelly Hi Rob, I don't understand the question. If an equity campaign is successful, then the question of how profits are divided is already decided - because that's part of the campaign. You have...
Expand commentRob Kelly Hi Rob, I don't understand the question. If an equity campaign is successful, then the question of how profits are divided is already decided - because that's part of the campaign. You have no real control over whether a distributor pays you honestly or not; but there should be a contractual right to examine their records. Finally, no distributor cares about your investors, if they are equity investors (assuming a corporation) because they have no say in contracts with them.
Exactly. So how does Equity investing work for the investor? If I invest 100 in a equity crowdfunding campaign, I recieve whatever percent of percieved profits. Great. themn I hear that the studio has ade a collosal amount more in distibution, whats the course of action?
As an investor... you probably have no recourse at all. Assuming a corporation or limited partnership or similar, you have equity (ie. shares) but as an owner you trade away your ability to affect man...
Expand commentAs an investor... you probably have no recourse at all. Assuming a corporation or limited partnership or similar, you have equity (ie. shares) but as an owner you trade away your ability to affect management and deal with company contracts in return for shielding you from legal liability for company debt and wrongdoing. A shareholder has no standing to complain about a contract the company enters into, and no legal relationship with anyone the company contracts with. Your recourse would be to seek the matter to be addressed by the directors of the company, at the annual general meeting, assuming you have voting shares. There are other permutations, but they all kind of boil down to "no practical recourse."