What is IndieShares™?
How is IndieShares™ different?
How do I vote?
What exactly am I voting on?
How much does it cost to vote?
Who can vote?
What happens after I vote?
Can I change my vote?
Can I vote more than once?
How long do voting events last?
How do I know who wins?
How do I get my friends to vote?
What terms do we need?
When can I invest?
How does investing work?
Who can invest?
Can companies invest in film projects?
Where are shares going to be offered?
Why should I invest in a film project?
How do I invest?
Are there limits to how much I can
invest?
Why am I limited to investing $2,500
in any one project?
Can investors invest in more than
one project?
Do I need to be an accredited investor?
Do I actually become a shareholder?
How do I pay for my shares?
Are there any fees to invest?
Do I receive a shareholder’s certificate?
If sufficient funds are not raised,
do I get my money back?
Will I receive any profits?
Do I receive any dividends?
What are the tax implications of
investing in an offering?
How long are film projects available
for investment?
What is the advantage to investors
in raising funds this way?
Can my shares be traded on an exchange
or be sold?
Can I buy shares as a gift for someone
else?
Who can buy an IndieGift™?
What if the person I buy shares
for isn’t eligible to invest or doesn’t redeem their shares?
How long does it take for a film
to generate returns, if any?
How are profits paid out?
What is a typical return on investment?
How risky is a film investment?
Why would I invest in a film project?
Who actually makes the movies?
How will the finished films be sold
or distributed?
What happens after a film is sold
or distributed?
What if a film is not sold or distributed?
Do investors have any input on a
film's production?
Are the film projects bonded (insured)?
Do investors get their names in
the credits?
Can investors read the script summaries
and review the budgets?
As an executive producer, will I
be admitted to the shooting locations?
Do I get to see the completed movie
for free?
Can investors submit their own scripts?
What is the advantage to writers
in raising funds this way?
Does my script need to be WGA or
Copyright registered?
What types of scripts does IndieShares™
accept?
How do I submit my script?
Can I send my script directly to
IndieShares™ via email or regular mail?
What formats does IndieShares™
accept?
Do I also submit a synopsis?
Is there a release form?
What happens after I submit my script?
Do I get to see the my script’s
IndieScore™?
Can I submit more than one script?
Will you let me know if my script
is not selected?
What happens if my script receives
one of the highest IndieScores™
If we agree to option/purchase terms,
what happens next?
What happens if my story wins the
voting event?
What happens if my story does not
win the voting event?
This sounds like a contest; how
is it different?
Can I submit my script more than
once?
Can I submit my script to other
places?
What if my script is optioned elsewhere
while being reviewed by IndieShares™?
Can I submit a script owned by someone
else?
Can I submit a film idea if I don’t
have a completed script yet?
What if I attach the wrong script
or document?
What if I want to update the script
I submitted to you (rewrites, edits, etc.)?
Q: What is IndieShares™?
A: IndieShares™ is an independent film company that puts a new spin
on the selection and funding of independent films. By giving the audience a say
in what films are made and an opportunity to invest, for as little as $10, IndieShares
puts the “indie” back into independent film.
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Q: How is IndieShares™ different?
A: IndieShares™ facilitates investments, not donations, for independent
films. In addition, we do a significant amount of prep work on behalf of the investors.
By applying our proprietary IndieScore™ model to each of the thousands of scripts
received, IndieShares helps ensure that only quality stories enter the voting process.
Additionally, IndieShares only works with well-known production companies and requires
a completion bond before production begins.
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Q: How do I vote?
A: Just go to the IndieShares™ home page, watch a few short video pitches
or read the script summaries, and vote for your favorite story—it’s as simple as
that.
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Q: What exactly am I voting on?
A: You are voting on the best scripts submitted to IndieShares™. We
receive thousands of scripts from around the world and each one is put through our
proprietary and rigorous filtering process. Those scripts with the highest IndieScores™
are optioned and only then do we ask for
Your Vote. IndieShares knows your
time is valuable and that’s why you will only vote on the best projects.
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Q: What happens after I vote?
A: The story that receives the greatest number of votes will move to the next
stage of the IndieShares™ process, where it will be made available for public
investment at just $10 per share.
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Q: How do I get my friends to vote?
A: By clicking the “Get Your Friends To Vote” button that comes
up after you vote, or on the homepage, or in any of our emails. You can get your
friends to vote and help us build the world’s most enthusiastic indie film community.
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Q: What terms do we need?
A: “We” and “Our”: In the
Your Money section,
“we” and “our” refers to the special purpose entities described
below, not to IndieShares.
Limited Liability Company Units: When individuals invest
in one of our film projects they will be purchasing something called limited liability
company units. In this FAQ, we refer to these units as “shares.”
Special
Purpose Entities: A separate special purpose entity is created for each film project.
These special purpose entities are legally known as limited liability companies.
If you purchase one or more shares, that means that you are a part owner of that
film project. When you buy shares, you are buying an ownership interest in the individual
film of your choice, not in IndieShares, which is a separate company from the various
film projects.
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Q: How does investing work?
A: Investing is easy. All of our offerings are registered at the applicable
state and provincial level and filed with the SEC. When the investing phase launches,
you can set up an account and buy between 1 and 250 shares at just $10 per share.
Once you do that, you’ll own a piece of an independent film. Of course, there is
no guarantee that you will make a return on your investment and there is a risk
that you may lose some or all of your investment depending on the success of the
individual film.
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Q: Who can invest?
A: Anyone over 18 years old, who lives in a state or province where the shares
are registered, can invest in our films.
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Q: Where are shares going to be offered?
A: We will initially offer shares in the following states: AZ, CA, CO, IL,
IN, KY, MA, MI, NV, NY, NJ, OR, PA, SC, UT, VA and WA and the following Canadian
provinces: AB, BC, ON and QC. However, we are always adding new states, so please
check back often.
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Q: Why should I invest in a film project?
A: Because you’ll get to be an integral part of the production process as
an executive producer. Not only will you get to see the film come together firsthand,
but you’ll also have exclusive access to interactive content such as clips from
the shoot, chat sessions with the talent, and bragging rights to your friends. Again,
please be aware that there is no guarantee that you will make a return on your investment
and there is a risk that you may lose some or all of your investment depending on
the success of the individual film. Please review the “Risk Factors”
section in the applicable offering statement.
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Q: How do I invest?
A: Once the investing phase is launched, just click the investing tab on
the navigation bar and follow the simple instructions. Everything is done electronically.
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Q: Will I receive any profits?
A: We hope so. Upon sale of a film, the preferred shareholders are the first
shareholders to receive any money (if the film has any creditors, they’ll be paid
first). The common shareholder (the manager of the film entity) will receive money
only AFTER the preferred shareholders receive their initial investment plus a preferred
return. All of the details are described in the applicable offering statement, so
please read this document (including the “Risk Factors” section) carefully
before investing.
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Q: Do I receive any dividends?
A: No. Cash will be available for distribution once the film is sold or other
distribution arrangements are made. The preferred shares have a built-in preference,
which provides a priority return of capital to investors who purchase these shares.
The preferred return may differ from project to project. Please review the applicable
offering statement (including the “Risk Factors” section) when making
an investment decision. Yet again, please be aware that there is no guarantee that
you will make a return on your investment and there is a risk that you may lose
some or all of your investment depending on the success of the individual film.
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Q: How long are film projects available for investment?
A: Typically, individual film projects will be available for investment for
up to 90 days, but the subscription period may be extended under certain conditions.
If sufficient financing is not obtained within the subscription period, any funds
collected will be promptly returned.
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Q: What is the advantage to investors in raising funds this way?
A: A primary advantage is simply having the ability to invest in independent
films—something that has not been widely available before now. Also, having a large
number of investors does two things: it limits the financial exposure to any one
investor and creates an enthusiastic audience for the film well in advance of production
or distribution.
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Q: Who can buy an IndieGift™?
A: Anyone can buy an IndieGift™. However, the recipient of the IndieGift
shares must be at least 18 years old and live in a state or province where the shares
are offered.
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Q: How long does it take for a film to generate returns, if any?
A: Depending on the speed at which a film is produced, and the timing of
a sale or distribution arrangement, a film might generate returns within one year
of financing. Although some may take more time. As IndieShares™ matures, the
time it takes to generate returns from films will likely decrease significantly.
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Q: How risky is a film investment?
A: All of our offerings are speculative in nature, involve a high degree
of risk, and are appropriate for investment only by investors who can afford to
lose all of their investment. For a complete review of the risks associated with
a film investment, investors should closely examine the offering statement of any
offering in which they are considering making an investment, including the Risk
Factors section.
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Q: Why would I invest in a film project?
A: Because you’ll get to be an integral part of the production process. You’ll
be the first to know which actors are cast, get to download clips from the shoot
and join chat sessions with the main actors and director. You’ll even vote on key
hinges in the movie because what you say matters. And, of course, you’ll share in
any profits the film makes.
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Q: Who actually makes the movies?
A: Our films are only produced by well-known production companies who work
closely with the film industry unions. Also, all film projects will be bonded, which
ensures that
Your Movie will be completed on time and within budget.
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Q: What happens after a film is sold or distributed?
A: The proceeds will go first to the preferred shareholders (that’s you)
and will then be split evenly among the preferred and common shareholders. It is
important to note that the common shareholders will not receive a dime until the
preferred shareholders earn back their investment plus a preferred return. All of
the details are described in each film’s offering statement.
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Q: What if a film is not sold or distributed?
A: The film’s management has a legal obligation to the preferred shareholders
to secure the best sales or distribution deal. In the event that a film cannot be
sold or distributed, management has the right to purchase the film from the preferred
shareholders at fair market value. This ensures that the sales effort does not go
on indefinitely.
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Q: Do investors have any input on a film's production?
A: Yes. Investors will have a direct say in some of the production elements
of the films. For example, “Does he drive off a cliff?”, “Does
she get the guy?” You tell us, it’s
Your Movie. Production elements
such as these will be selected by the producer and director for investors to vote
on. In the future, investors may have the ability to vote on other areas of the
project.
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Q: What is the advantage to writers in raising funds this way?
A: The main advantages to you are gaining access to production funds as well
as major exposure (through hundreds of thousands of voters and investors).
Also, submitting your script to IndieShares™ does not preclude you from shopping
your script around while it moves through our review process.
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Q: How do I submit my script?
A: Simply complete the four-step script submission process: complete questions
about yourself and your script, attach your script in PDF or Word format (less than
2.5MB), and agree with the submission release terms.
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Q: This sounds like a contest; how is it different?
A: IndieShares™ applies its unique and very rigorous IndieScore™
process to discover the best scripts available. Although voting is competitive,
our main objective is to make great stories into films and provide superior investment
opportunities.
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