1. Capital risk
Most independent films do not return their investment. According to industry studies, roughly 70–85% of indie films produced never recoup their negative cost. You should assume your investment is at risk of total loss. Indie Planet does not guarantee returns of any kind, and no investment on the platform is FDIC-insured or SIPC-protected.
2. Production risk
Funded films may fail to complete principal photography, post-production, or delivery for reasons including but not limited to: cast or crew unavailability, weather and location issues, financing gaps that emerge mid-production, regulatory changes, and force majeure events. If a film does not complete, you may receive partial recovery or no recovery at all, depending on the structure of the project's escrow and completion guarantees.
3. Distribution risk
A completed film is not a profitable film. Many independent films secure no theatrical distribution, fail to sell at festivals, or receive only nominal streaming licensing fees. Revenue projections in any campaign are estimates by the production team and are not endorsed or verified by Indie Planet.
4. Illiquidity
Your investment is illiquid. There is no public market for the equity or revenue-share interests you receive. You may not be able to sell or transfer your interest. You should expect to hold your investment for the entire revenue horizon of the film — typically seven to ten years.
5. Dilution & cap-table changes
Films often require additional financing during or after production. New investors may receive priority in the revenue waterfall, diluting your effective position. The cap structure disclosed at campaign launch may change as the film proceeds toward completion.
6. Reliance on third parties
Investments on Indie Planet are facilitated by Fraction Kings, a registered funding portal. Indie Planet is not a broker-dealer, investment adviser, or custodian. Production companies — not Indie Planet — control the deployment of funds, creative decisions, and reporting. Indie Planet's role is limited to platform operations and curation.
7. Tax considerations
Income from film investments may be characterized as ordinary income, capital gains, or royalty income depending on the structure and your jurisdiction. Indie Planet does not provide tax advice. You should consult a qualified tax professional before investing.
8. Eligibility & investment limits
Certain offerings on Indie Planet are limited to accredited investors as defined by the SEC. Reg CF offerings impose annual investment limits based on income and net worth. By placing a pledge, you confirm you meet the applicable eligibility criteria and have not exceeded your applicable annual limit across all Reg CF investments.
9. Reporting
Production companies are obligated to provide quarterly updates and annual revenue statements once a film begins earning. Reporting cadence and detail may vary by project. Late or incomplete reporting is not unusual in independent film and does not necessarily indicate fraud or distress.
10. Fraud and misrepresentation
While Indie Planet performs due diligence on every project we list, no diligence process eliminates the risk of misrepresentation by a production team. You should read each campaign's disclosures carefully and consider whether the materials and team align with your expectations.