The team, which produced one of the world’s first fully fan-funded films, Mad Heidi, has already worked on crowdfunding involving many stakeholders around the world.
In such a scenario, the use of blockchain can significantly reduce process management costs by automating transactions and ensuring trust between all parties.
Mad Invest has decided to use ERC20 tokens, based on the Ethereum network, which are issued every time an investment is confirmed, and to use smart contracts that reduce costs and human errors.
Revenue distribution, based on blockchain, is supported by Filmchain, a UK-based company, and all proceeds from the film are paid directly into Filmchain.co’s blockchain collection account, and then into Mad Investors’ wallets. Investors can then transfer their share of the proceeds to their bank account once the balance of their portfolio has reached a minimum of CHF 30.
Mad Investors have already had the opportunity to register in advance to buy shares of Mad Heidi, which to date has already raised 250,000 Swiss francs, but now anyone can buy shares on invest.madheidi.com.
To start production of the film, a minimum of 1 million francs (set as a soft cap) will have to be raised, and to collect this amount, 4,000 shares of 500 francs have been issued, equivalent to a hard cap of 2 million francs.
If the soft cap is not reached, investors will receive their investment back.
The distribution of the film will be controlled by the production team in order to reduce the risks associated with piracy and the costs of distributors and agents.
Investors will participate in all net receipts from the film, including those from digital streams, downloads, DVD, Bluray or other physical formats, or from cinema screenings and TV sales. Investors who have invested more than 5,000 francs will also participate in the net revenue generated by merchandising sales.
The film is dedicated to the “return” of the legendary young girl living in the Alps, now grown up in an alternative Switzerland that fell under fascist rule. Her desire for freedom will be the spark that ignites a revolution.
Mad Heidi is a parody of action-adventure-comedy-horror, a kind of Kill Bill meets The Sound of Music.
The film’s co-producer, Tero Kaukomaa, said:
“By harnessing the power of blockchain MAD HEIDI is demonstrating that fan-driven films for a worldwide audience are not only fun, they are a profitable investment opportunity. The MAD INVEST model is a first in that backers can directly participate as equals in the financing of a global movie, share in net revenues of a global film, and unlock priceless bonus rewards like being in the film, visiting the set, or even getting their name in the film credits. By using a crowd investment model, blockchain technology, and a simultaneous global release, MAD HEIDI will also cut out the problem of piracy as well as the many middlemen like distributors and sales agents who take their cut and reduce revenue. It’s a win-win for the movie’s backers, fans and the film industry in general”.