Mike Merrill became known as the world’s first publicly traded individual in 2008 when he began selling shares of his life for $1 each. This unique background positions him well to lead his latest venture, Chroma Fund. This innovative platform allows creators to “IPO” their media projects, including indie video games and films, enabling them to tap into investment opportunities without directly offering shares of themselves.
Chroma Fund offers accredited investors the chance to buy shares in various media initiatives and has already supported projects such as a new video game from Mountain Machine Studios and an educational web show for children called The Digits, which is available online via PBS Learning Media.
Unlike traditional crowdfunding platforms, where backers contribute without financial returns, investors on Chroma Fund receive royalties from the respective projects’ revenues, according to co-founder Marcus Estes. This model distinguishes Chroma Fund from popular sites like Kickstarter and IndieGoGo, allowing for a more structured investment return.
The advent of Chroma Fund is part of the wider evolution in crowd-investing made possible by the 2012 American JOBS Act, which permits companies to seek funding publicly, including through online platforms. Currently, this is limited to accredited investors, but future legislation could open the doors to the general public. Oregon has already enacted laws to enable public investment in local startups, a change that the Chroma Fund team is adapting to as they prepare for a broader market.
Chroma Fund operates with a selective approach, currently collaborating with a limited number of companies, but expects to expand its project roster as it grows. Estes envisions a future where this funding model could significantly alter the landscape of media financing, potentially disrupting traditional models in Hollywood.
Estes and Merrill’s partnership began around two years ago when Estes returned to Portland after a tour with Kanye West, where he was involved in a documentary series. Although the project faced legal issues, it reignited Estes’ passion for filmmaking, leading to discussions with Merrill about incorporating both technology and content in a new business endeavor.
Through their experiences, they found that while tech startups can generate substantial revenue, media projects often lack similar investment opportunities. They concluded that Merrill’s earlier concept of selling shares in himself could successfully apply to various creative endeavors.
Chroma Fund aims to empower creators to raise funds while maintaining artistic control over their projects. Creators can define their own terms, such as revenue sharing and investment returns, with the platform handling the necessary contracts and payments to investors.
To bring their idea to life, Merrill and Estes joined Oregon Story Board, a startup incubator focused on digital storytelling, where they forged a partnership with the founders of Mountain Machine Studios, which benefited from initial funding through Chroma Fund. Nick Lambert, co-founder of the studio, stated that this support allows them to concentrate on their craft while retaining full control over their projects.
Looking ahead, Estes envisions a reality where pension funds could diversify their portfolios to include video games and films, although he believes the majority of funding will continue to come from dedicated fans eager to support their favorite creators. This new model will not only allow fans to invest in projects but also incentivize them to promote these initiatives further, as they will have a financial stake in the outcomes.