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To fund new movies, ‘American Psycho’ producer turns to the crowd

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To fund new movies, 'American Psycho' producer turns to the crowd

As a seasoned film enthusiast with a penchant for Hollywood classics and a wallet that often feels lighter after every trip to the multiplex, I find this innovative approach by Pressman Film truly intriguing. Having watched “American Psycho” and many other films produced under the Pressman banner, it’s fascinating to see how the industry is evolving, allowing us, the audience, to be a part of the creative process.

A well-known movie studio from Hollywood, famous for hit movies like “American Psycho,” is adopting an innovative approach to finance its upcoming productions – engaging the general public.

Pressman Film, a movie production company based in Los Angeles, has announced that it will offer people the opportunity to invest in its films, as reported by The Times. This move makes Pressman Film the latest company to explore crowdfunding. The fundraising campaign, set to open to the public on Thursday, aims to raise $1.5 million in this round.

Investing in several upcoming projects instead of just one movie allows investors to distribute their risk across different genres, as explained by Sam Pressman, the CEO of the firm and son of Edward R. Pressman, a renowned producer whose works included “Wall Street” and the “Crow” series (who passed away last year). Despite this, it’s worth noting that the summer reboot of “The Crow,” one of their projects, didn’t perform well at the box office.

In a recent interview, the younger Pressman expressed that there’s plenty to look forward to within our industry. However, it’s crucial for producers to deliver innovative movies, original ideas, and upcoming filmmakers to keep the audience engaged. Essentially, we want to inspire audiences to join us in shaping the future.

This approach is something producers have tried before, particularly when entertainment firms seek innovative methods to generate funds and captivate audiences. As it becomes harder for producers to secure funding for development through conventional financial channels, they’ve turned to this method more frequently.

Through investment platform Republic, the fundraising event for capital is being conducted. This platform has previously managed crowdfunding initiatives for Skybound Entertainment, known for producing “The Walking Dead”, and Watford F.C., an English professional soccer team. On Thursday, it was announced that rapper Snoop Dogg and film director Robert Rodriguez (“Spy Kids”) will be launching their own campaigns on this platform soon. Rodriguez aims to secure funds for a new series of movies, while Snoop is looking to gather funds for an animated series created by his son.

As a follower, I’d like to share some information about an investment opportunity with Pressman Film. The minimum amount required for participation in their capital raise is set at $200 for all investors. However, for accredited investors, the maximum buy-in is capped at a million dollars. To successfully close this funding round, Pressman Film needs to secure at least half a million dollars, and the deadline for this is November.

Should the company achieve its goal of earning $1.5 million, it intends to initiate six projects utilizing its current intellectual property along with fresh narratives. Investors will start seeing their returns at the inception of a project’s production, and subsequently receive a share of Pressman’s producer fee and any rights fee for every film within this plan that successfully moves into production, according to the company. (It is important to note that many projects developed in this manner may not ultimately be produced.)

Investors also will get a portion of net profits, and Pressman said the company will not take any money from a film’s net profits until investors are paid back with interest. Depending on funding level, investors will be eligible for perks, such as exclusive items, film credits and set visits.

The company said it has already raised more than $250,000 in a private launch.

Max Loeb, the head of development at Pressman, stated, “The entire industry is searching for a solution that will satisfy our desire for the films we love. We’re optimistic that this might be one step in the right direction.

Many other film productions have employed crowdfunding strategies, like the 2014 movie “Veronica Mars,” which raked in an impressive $2 million on Kickstarter within just one day.

As a movie enthusiast, I was thrilled last year when “Sound of Freedom,” an unexpected success, managed to secure $5 million for its marketing through crowdfunding. This groundbreaking funding method was made possible by Angel Studios, a platform that invites fans like me to invest in projects and even have a say in what movies get the go-ahead for production. It’s a fantastic way to be part of the creative process and support films I truly believe in!

Obtaining funds for movies has grown tougher lately due to rising interest rates, which has caused traditional investors like private equity partners and Chinese financiers to pull back. As a result, the cost of bridge financing – often referred to as “gap” financing – has gone up significantly.

Pressman Film officials started discussing the possibility of funding expansion several years back and acknowledged the importance of finding alternative methods for financing, as stated by Pressman himself.

Speaking about the future of media, it appears that the gap between content creators and their viewers is narrowing significantly. This closer connection should lead to a more vibrant future for entertainment, allowing us to play an increasingly influential role in shaping movies and engaging in meaningful cultural discussions.

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2024-09-07 14:35

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