There's nothing intrinsic about crowd-funding that restricts this sort of fund-raising to unknown authors looking for a first advance. The JOBS act restricts the amount raised from "unqualified investors" to $1,000,000, so the really big name authors would have to tap the "qualified investor" funding market. (An individual with more than a million dollars in assets excluding home and vehicles is considered "qualified")Read the whole thing.
Once equity crowd-funding becomes established for books (and it WILL happen!), incumbent publishing houses will have lost, at a stroke, their oligopoly on books as investment vehicles. Already, publishers are outsourcing their design, editorial, production, distribution and sales functions; providing capital is their last bastion of essential function. They will have to participate in the new markets or they will dissipate into irrelevancy.
Thursday, April 11, 2013
Croudsourcing Investments in Books: It will happen.
Eric Hellman over at the eponymously named Go To Hellman has an interesting idea that chips away at one of the last foundations of big publishing; the 'investment banking' attribute that big publishing brings to the industry. Here's a snip from his blog post this week: