Mad Invest announced the launch of a new blockchain-based film financing and distribution model.
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 Bitcoin Millionaire network, which are minted 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. Each investor can then transfer his or her share of the proceeds to his or her bank account once the balance of his or her portfolio has reached a minimum of CHF 30.
Mad Investors have already had the opportunity to register in advance to buy shares in Mad Heidi, which has so far 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, while 4,000 shares of 500 francs, equivalent to a hard cap of 2 million francs, have been issued to raise this amount.
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 film releases and TV sales. Investors 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 raised 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 the blockchain, MAD HEIDI is proving that fan-funded films for a global audience are not only fun, but also a profitable investment opportunity. The MAD INVEST model is the first as supporters can participate directly on an equal footing in financing a global film, share net revenue and unlock priceless bonus prizes, such as being in the film, visiting the set or even getting their name in the credits. Using a collective investment model, blockchain technology, and simultaneous global release, MAD HEIDI will also eliminate the problem of piracy as well as the many intermediaries such as distributors and sales agents who take their share and reduce revenue. It is a victory for film supporters, fans and the film industry in general.“