Crowdfunding’s Imminent Implosion

By Terry Green,

Director Spike Lee is making the rounds on talk shows to defend his reasons for using Kickstarter to crowd fund film ideas he can’t sell to the studios and it’s not going well. Earlier this week on Bloomberg News,Mr. Lee went off on a rant after the program’s host opened the segment by raising the question of why an accomplished filmmaker is taking advantage of crowdfunding when it’s a tool that’s designed for helping aspiring filmmakers get a foothold in the industry and not intended for celebrities who have other finance avenues available to them. In fact, he interrupted the flustered host before she could complete her intro and asked, “Why would you open like that?”


This interview may be an opportunity for an established filmmaker to defend himself, but it goes to the very heart of what’s essentially wrong with crowdfunding. With few limitations on who can launch a CF campaign and no ceiling on the amount of money that can be raised, the door is open for abuse. The argument could be made that Spike Lee is simply being a good businessman, and in a way it would be justified. What’s not being discussed in this interview, or anywhere else for that matter, is the strain that crowdfunding has put on commercial independent film producers who create jobs and pay film workers living wages. The glut of crowd funded microbudget films has clogged the system and made it harder for anyone to get ahead. This is the price of film’s democratization and when Spike Lee enters the arena, it only makes the flaws of crowdfunding more obvious.

Others have suggested this is a hate issue and that Spike Lee is being unjustly attacked because he’s an African-American filmmaker, which is ridiculous. This is a film economics issue with moral overtones and nothing more. Other celebrities who have taken advantage of crowdfunding have been criticized for the same reasons. The real question here is one of ethics. Should a celebrity be allowed to cash in on that celebrity by using a finance platform that’s primarily relegated for novices? Kickstarter may think it’s perfectly all right, but they’re also collecting a commission on every dollar that celebrities raise on their site, so the more the merrier. Anyone who turns this into an issue other than what’s defective about crowdfunding is missing the point.



This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

ForbesThe Celebrity Who Loves Crowdfunding: Lala Anthony Hosts New Series Featuring Female EntrepreneursForbesIt's been proven that funders clicking through projects on crowdfunding sites seem to prefer early-stage, female-led ventures, and one celebrity is looking to highlight t [...]

Crowdfunding flower power in WalesPositive.NewsResidents in north Wales decided to act to help a local patch of land flourish. They hope their successful crowdfunding campaign will help them continue restoring this “beautiful meadow”. Locals launched the Gweld y ddôl – Seeing the mead [...]

Crain's Cleveland BusinessCrowdfunding can ease teachers' 'burden'Crain's Cleveland BusinessBooster seats. Reading materials. A bass clarinet. What do these things have in common? At the start of October, teachers in Ohio were trying to raise money to buy all [...]

Development Finance TodayAssetz to launch property crowdfunding platform in Q4Development Finance TodayAssetz Exchange is currently fundraising for launch with a Seedrs equity investment crowdfunding campaign with a pre-registration page. It is also accepting pre-registrations from po [...]

PolygonStar Citizen's celebrity-clad Squadron 42 trailer boosts crowdfunding by over $1mKitGuruCloud Imperium Games pushed its Alpha 3.3 into Star Citizen's public test servers last week, alongside debuting the most complete trailer for its celebrity-filled Squadron 42 singl [...]

Marie Claire (press release) (blog)A crowdfunding campaign has raised over R100k for the girlchild in the Dros caseMarie Claire (press release) (blog)In an initiative to pay for therapy for the seven-year-old girl allegedly raped at Dros Restaurant in Pretoria, an anonymous group of p [...]

UK FundraisingJustGiving removes platform fees for crowdfunding, major incident & disaster campaignsUK FundraisingJustGiving has today (15 October) announced key changes to its fee structure that will see platform fees no longer charged for its Crowdfunding product, or for major i [...]

AdAge.comLego, Coke and other big brands are turning to crowdfunding for R&DAdAge.comEnter Indiegogo, a crowdfunding service that is luring more business from large corporations, which are using the platform to test ideas. New interest from the likes of Coca-Cola and Tyson provide [...]

VENTS Magazine (press release) (blog)Kelly Hafner Announces Upcoming Album 'If It's Love,' Crowdfunding Through Kickstarter Now!VENTS Magazine (press release) (blog)Sultry smoke and white-hot fire escape the lips of Austin singer/songwriter Kelly Hafner on her debut rel [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |