Skybound Entertainment, which was created by The Walking Dead co-creator Robert Kirkman, announced Monday that it has launched an investment campaign that will allow fans to own a portion of the blockbuster franchise and other intellectual property. Republic, a crowdfunding app, is leading the campaign, which has already raised $12 million from nearly 5,000 investors during its quiet phase. Republic describes the campaign as one of the most successful to date.
Investing through Republic is not the same as buying stock in a public company. Investors receive a Crowd SAFE Investment Agreement, which entitles them to a financial interest in the company but does not entitle them to any dividends or other benefits that a public entity may provide. However, if Skybound is bought, goes public, or sells all of its assets, investors may get a return on their investment in the brand.
Organizers admit it’s a risky bet for your money, Fast Company reports.
“This investment is associated with a high level of risk,” says the subscription agreement. “This investment is only suitable for people who can bear the economic risk indefinitely and can afford to lose their entire investment. In addition, investors must be aware that their investment is illiquid and is likely to remain illiquid indefinitely. No public market exists for the Units… and no public market is expected to develop after the Offering.”
from some, Republic means you will have a hard time getting the money back if you change your mind. Inserts cannot be sold for at least a year – and There is no guarantee that anyone will want to buy it.
This type of funding is referred to as a Regulation A+ offering. It’s basically an alternative to an IPO or other offering that allows companies to avoid full registration with the Securities and Exchange Commission but still offer securities. Some companies use them to test the waters before making a more formal offer, although that’s not the only use case.
Nonetheless, The Walking Dead, Amazon’s Invincible, and Skybound’s well over 150 other television and comic titles have a loyal following – as evidenced by the $12 million they’ve garnered. Some of these fans may wish to invest to be more closely associated with these products. If that’s the case, they’ll have to pay at least $500 for each common share (and those shares can’t be fractionated, so they’ll have to invest in $500 increments).
“We are extremely excited about this Regulation A+ offering as the concept aligns with one of Skybound’s core values: connecting with fans,” Skybound CEO David Alpert said in a statement. “We believe that empowering our developers to do what they do best and inviting their superfans to participate in the content they care about is a win-win for everyone inspire.”
Sounds a lot like “Stretch Goals” in Indiegogo or Kickstarter campaigns in that the more you invest, the more “Perks” you could get. Invest $5,000 in the company and you’ll receive a Skybound Universe beer mug along with your shares. Would that make you happy with your $5,000 investment?
Richard Meyer comments on this campaign with some interesting thoughts.
A tour of the company’s headquarters and studios is available for just $100,000. And a $2 million investment will have you walking the red carpet in a future Skybound movie or television release, too. Before the campaign ends on August 14, 2023, the company hopes to raise $75 million. They say their pre-investment valuation is $500 million, although there was no indication that it was an audited valuation.
If you’re interested, check out the campaign here.
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