Crowdfunders Want Their Money

Kickstarter has (perhaps inadvertently) muddied the waters with respect to the rewards-based crowdfunding projects that it sponsors.

Last year, actor Zach Braff raised over $3.1 million to fund his vanity movie “Wish I Was Here.” He promised his more than 46,000 supporters the usual swag in return for their dollars (hats, Tshirts, etc.). The movie was made and recently sold to Focus Features (a division of Universal Pictures, a division of Comcast Corp.) for about $2.75 million.

Now, for some reason, some of Braff’s contributors are asking about getting their money back. This issue  has been aggravated by someone at Kickstarter suggesting that crowdfunders could refund contributions less Kickstarter’s and its money processors’ fees.

But, remember, that even if true, the deal was not an equity or even a debt investment. It was a donation, or in reality, a pre-sale of the merchandise promised for the money sent.

So, Braff and his producer have responded by saying that ain’t going to happen. Braff will fulfill his promises by sending out the swag and holding meet-and-greet showings of the movie throughout the US for his donors.

 

See the brou-ha-ha here:http://lnkd.in/djQzdNs

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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