Interested in Crowd Funding? Capital C (available in Netflix) is a good place to start understanding about the nuances of this source of funding.
Treps need money to build their business. Through the magic of the internet, Trep ideas get matched with small and big time investors. You can google “crowd funding” and you can find several websites that act as a venue for the two to meet. Kickstarter.com is perhaps the most popular one.
What do investors get in return? Are they treated as stock holders? Is this a grant? The KickStarter website says this:
Backers that support a project on Kickstarter get an inside look at the creative process, and help that project come to life. They also get to choose from a variety of unique rewards offered by the project creator. Rewards vary from project to project, but often include a copy of what is being produced (CD, DVD, book, etc.) or an experience unique to the project.
Project creators keep 100% ownership of their work, and Kickstarter cannot be used to offer equity, financial returns, or to solicit loans.
Kickstarter gets paid 5% of the funds collected (plus 3-5% processing fees) but ONLY IF the Trep gathers enough $ to meet his/her goal.
The documentary follows Treps who talk about their experience. It’s interesting to see how similar-minded interests help each other make their hopes and dreams a reality. Within 35 days Treps need to get funding or all the investment $ disappear. It shows how bigger companies can take advantage and run with someone else’s idea because Startups don’t have enough funding to garner copyrights. They go to China to build cheaper copycat items and kill American ingenuity.
Put this in your WATCH list.