New SEC Rules Could Revolutionize Crowdfunding For Movies

“Until now, the public has been giving away millions of dollars to startup companies on sites like Kickstarter, and some of these startup companies have gone on to sell for billions, with no reward to the initial public funders. It had been difficult for the startup companies to issue equity in exchange for this funding because of the restraints of securities laws, and the fact that the public was funding these companies with nothing in return made a mockery of those laws, since it is hard to make a worse investment than just giving money away for free (or even for a Veronica Mars T-shirt).”