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> You then distribute the film through the site, for a fee. Split the revenues 70 / 20 / 10. The film makers get 70%, the "producers" (the funders) get 20%, and the site gets 10%.

This would be illegal unless everyone is a qualified investor. It's the reason Kickstarter requires you to "donate" money and you cannot return any kind of financial compensation.

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Kick starter can't be used to start a corporation. That doesn't mean it couldn't be used to fund R&D. 20000 people can pay me $100 to make a movie, in exchange for a percentage of its sales. That's called a contract.

I can hire a production crew to make a movie.

No such activities constitute investment. They are just works for hire.

There may be liability issues. Potential breach of contract problems. You could get around that with the right contract structures (who hires whom, and what the terms are).

The funders wouldn't have the same rights as investors, but that seems ok.

Am I missing something?

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