We are half way with our current IndieGoGo campaign and I thought its time for me to share some thoughts here.
What is crowdfunding? Wikipedia describes it well;
- Reward-based crowdfunding: entrepreneurs pre-sell a product or service to launch a business concept without incurring debt or sacrificing equity/shares.
- Equity-based crowdfunding: the backer receives unlisted shares of a company, usually in its early stages, in exchange for the money pledged.
We have done and will do both. Here is a summary of our campaigns so far;
May 2010; After furiously struggling several years to get (the 1st) Iron Sky off the ground we launched an equity based campaign in our own web-page for the fans to join in the possible profits from the film. This brought the production about $1,000,000 in direct investments, but also triggered in an other $1,5 million from the industry and, finally, Iron Sky was becoming real.
May 2013; To fund the development of the sequel we launched a IndieGogo campaign to raise $150,000 to write the screenplay and produce a promo. We exceeded the target and recently delivered both a kick ass script and promo.
May 2014; After the decision to continue Iron Sky saga and forming Iron Sky Universe as a dedicated entity, we launched equity CF campaign using a Finnish platform Invesdor.com and sold 10% of Iron Sky Universe shares to about 500 individuals in over 30 countries. This campaign rocketed through the roof and we made 532% of the minimum target, in about a week!
November 2014; By launching the promo produced with the funding from the previous campaign we finally started to crowdfund the production of the sequel. And now we’re half way trough the campaign. Few words and stats on this;
Within our target to make the coolest sci-fi franchise, we want to engage the global audience. When I started in film business 20 years ago, my friends started to call me proposing all kinds of ideas ”Lets make an ice-hockey film”, ”Why don’t you use this and that!”. 15 years later and working with Iron Sky community I finally understood what that means. There is so many people whose focus is in other professions or studies, but wants to join film making as a hobby.
Crowdfunding is one form of that engagement, and it can be very effective one. Now in half way of this campaign we have over 3,000 contributors, from which 80% pre-ordered a film which is coming out in 2 years. What does that mean? Naturally it means the needed funding for the production and it means we are building an audience with their voices out there to spread all this further. And finally, with this prove of the world wide audience, we have the change to create the rules for the distribution and make the film better available for the global audience and get rid of the problems we had with the 1st film.
Currently we have contributors from 62 countries, including places like Saint Kitts and Nevis, Zambia and Republic of Moldova. Top 10 countries are Germany, Finland, USA, UK, Switzerland, Australia, Sweden, France, Canada and Netherlands. Average contribution is around $65 and the fastest selling perk so far has been ”Get eaten by a Dinosaur”. Below you can see 3 different campaign stats to give you a bit of understanding how the whole thing works; the amount of funds, the visits on the campaign page and the amount of contributions.
Finally, I also want to talk shortly about Jolla, a Finnish mobile brand who is currently running extremely successful campaign. As we all know, crowdfunding started as a way for artists to ask help from friends and followers to their art projects. It`s still that, but Jolla is now one of the many examples of more traditional business using crowdfunding as a cost effective test marketing and product development. In my opinion its the right way and its the future. Why? It gives the consumers easier access to join whatever they are interested in. And that can only boost the economy in the end of the day!
So, now back to work and fight to get our campaign to reach its goal!
Comments, feedback & suggestions more than welcome.
Entrepreneur & Producer