IndieVest

IndieVest
Private
Founded Los Angeles, California 2004
Defunct July 2015
Headquarters Los Angeles, California
Key people
 Wade Bradley, Chairman/CEO
Products Independent Film Financing, Production, and Distribution
Website www.indievest.com

IndieVest, founded in 2004 by venture capitalist Wade Bradley, was an independent film studio, financier, and distributor based in Los Angeles. The company used a membership-based platform for financing film projects. The company served high-net-worth individuals and institutional investors. Following the failure of its only two films, several investors sued IndieVest and Bradley for fraud. The company went dormant in early 2012, and in July 2015, Bradley told investors that he had begun "winding down" IndieVest.[1]

Business plan

The company used a membership-based platform for financing film projects. The company served high-net-worth individuals and institutional investors.[2] Members paid a fee of either $2,950 or $4,950 yearly along with a 10% syndication fee. Members were given film pitches to choose from, with a minimum investment of $50,000.[3]

IndieVest documents promised investors a full return on investment, plus a preference payment of 15%. IndieVest stated that investors were to be paid out before the company profited.[3]

Film productions

IndieVest Pictures, a subsidiary of IndieVest, started production in August 2008 on their first film, Saint John of Las Vegas.[4] The film is a buddy comedy featuring Steve Buscemi, Romany Malco, Sarah Silverman, and Tim Blake Nelson. Filming took place in New Mexico and Las Vegas. Saint John was released in January, 2010. The film received $21,666 in its opening weekend at #50 and reportedly the domestic box office receipts totaled just over $100,000.[5][6] The film has mostly received mostly negative reviews, with a 17% rating with 6 "fresh" ratings and 30 "rotten" on Rotten Tomatoes.[7] Chris Nashaway of Entertainment Weekly called the film "Excruciatingly awful" and "a shaggy road movie to nowhere".[8]

In July 2010, IndieVest started filming a second movie, Knights of Badassdom, an American comedy horror film,[9] directed by Joe Lynch,[10] written by Kevin Dreyfuss and Matt Wall.[11] The film was shelved and significantly re-cut by Bradley; Lynch later stated that this was a violation of their contract.[12] On March 4, 2013 updates reported that the film was screened March 5, 2013 to potential buyers in Los Angeles.[13]

On July 23, 2013, the Financial Industry Regulatory Authority (FINRA) settled a regulatory complaint against Wade Bradley with Mr. Bradley neither admitting nor denying the findings and providing a statement of mitigating circumstances. The penalty was a thirty-day suspension from the firm he no longer worked for and $7,500 fine (only payable if he re-registers with a FINRA firm).[14] On July 25, 2013, it was announced that Entertainment One had bought the North American distribution rights to the film with Wade Bradley negotiating the deal for IndieVest Pictures.[15]

Investor suits

In 2013, several IndieVest investors launched an arbitration filing with FINRA against IndieVest and Bradley seeking $1.6 million to be returned to them.[16][17] The investors alleged that Bradley illegitimately withdrew their funds from escrow despite the fact that the minimum amount had not been reached to break escrow.[1][16] Bradley stated that he had believed that the minimum amount had been reached at the time he withdrew the funds.[16]

The investors alleged that Bradley's company Media Society, founded in late 2012 about seven months after IndieVest became dormant, was a successor entity that should have borne IndieVest's liabilities.[16] Bradley responded that Media Society was a separate entity and not connected to IndieVest.[1]

References

  1. 1 2 3 "'Knights of Badassdom' Producer Sued for Fraud". The Hollywood Reporter. Retrieved 2018-01-19.
  2. ↑ "IndieVest seeks investors for independent feature films - South Florida Business Journal". South Florida Business Journal. Retrieved 2018-01-19.
  3. 1 2 Hessel, Evan. "So You Want To Be A Hollywood Mogul?". Forbes. Retrieved 2018-01-19.
  4. ↑ Sanders, Peter (2008-10-07). "High-Risk Glamour: A Piece of an Indie Flick". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-01-19.
  5. ↑ "Saint John of Las Vegas (2010) – Weekend Box Office Results". Box Office Mojo. Retrieved 2010-02-12.
  6. ↑ "The Numbers - Box Office Data". The-Numbers. Retrieved 2012-010-12. Check date values in: |accessdate= (help)
  7. ↑ "Saint John of Las Vegas Movie Reviews, Pictures – Rotten Tomatoes". Rotten Tomatoes. Retrieved 2010-02-12.
  8. ↑ Entertainment Weekly February 5, 2010 pg. 50.
  9. ↑ "Official Synopsis: Joe Lynch's Knights of Badassdom". Dreadcentral.com. Retrieved 2010-12-06.
  10. ↑ "'Terminator' Hottie Summer Glau Battles Heavy Metal Demons in 'Knights of Badassdom'!". Bloody-disgusting.com. Retrieved 2010-12-06.
  11. ↑ "'Community' Funnyman Grabs His Sword for 'Knights of Badassdom'!". Bloody-disgusting.com. Retrieved 2010-12-06.
  12. ↑ "Buyers Beware - That's A Butchered Version Of Knights Of Badassdom You're Being Offered - Bleeding Cool News And Rumors". Bleeding Cool News And Rumors. 2013-03-04. Retrieved 2018-01-19.
  13. ↑ "Joe Lynch's Knights of Badassdom Being Held Up by Greed and Stupidity'!". Dreadcentral.com. 2013-03-04. Retrieved 2013-03-04.
  14. ↑ FINRA Disciplinary Proceeding #2011025780101
  15. ↑ "EOne Acquires Indie Comedy 'Knights Of Badassdom'". deadline.com. 2013-07-25. Retrieved 2013-07-25.
  16. 1 2 3 4 Miller, Daniel. "Film entrepreneur draws mixed reviews – LA Times". latimes.com. Retrieved 2018-01-19.
  17. ↑ Greenburg, Zack O'Malley. "Panning For Silver Screen Gold: How To Invest In Films". Forbes. Retrieved 2018-01-19.
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