Viewing: Notes » Dollar, please.
(2 minute read.)
Other peoples' money.
Let's briefly revisit and clarify a point raised earlier, about how getting pre-funded was neither a preferred nor practical option, and I've never considered it.
- Investor: It'd be difficult to find someone mutually compatible and willing to take a hands-off position allowing things to proceed as planned. And a current valuation will be low, and hence to get a decent amount of cash would require the allocation of too much equity.
- Loan: Post-recession, and with my less-than-ideal credit rating, bank funding isn't a viable option.
And other potential get-some-cash options…?
Co-founders: I'm happy to have partners, but because I want to retain say-so control throughout initial development I've always limited such potential participation to sweat-equity rather than financial investment.
Crowdfunding: 'You mean… come-up with some hokey executive/associate producer credits, or tee-shirts, caps and stuff if you'll give us a dollar? Yeah, right… thanks, but no.'
If we had a consumer-oriented product rather than business-oriented services it'd be different, because we could then do the discounted pre-sale thing which is the basis of many crowdfunding initiatives.
What I don't want to do, is what I've seen some with other media-oriented projects… devise convoluted deals whereby those who pay enough get hokey 'associate producer/director' credit and/or airtime. And I honestly can't think of something we could offer which isn't too contrived and/or lacking integrity.
Perhaps I'm being too prissy and sensitive, but crowdfunding efforts can seem a bit like going around with a begging bowl, taking money from anybody without ever establishing a real connection or providing anything significant in return.
If I was considering selling equity to provide development funding, I wouldn't be closed to using the crowdfunding variants which enable individuals to buy shares. But that brings complexities which might not be beneficial.
So then, bootstrapping it is.
In deciding to do this the only way we could, we knew that funding the initial work would be a challenge.
But I'm not bothered, because we've thought about it and have a sensible route ahead.
NEXT: Money, honey.
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