Summary
As someone who helps raise funds for content from advertisers, the biggest issue with this type of financing becomes what it is for.
Brands hesitate to participate in funding original IP for 2 reasons; no guaranteed distribution, and no creative equity in the concept.
Raising money for films from investors is a necessary evil for this speculative and expensive creative process. But the barriers are dropped if the producers just look around and pay attention.
As producers scramble to fund brilliant ideas, perhaps they should look away from raising money online, and look more to find distribution online. Traditional film distribution, as well as TV, radio, and print, has hurdles not easily crossed. With broadband growing, the success stories of YouTube, Myspace, and others there is a small window for the "creative talent" to shine again.
Producers and brands (advertisers) have all the power over distribution in this case and the opportunity to fund amazing new media is there, if producers (and they're agents), are willing to step away from the allure of big money mediums.
Analysis
Any major portal will take brand funded projects and distribute them, as long as there is opportunity to sell to other advertisers. Mark Burnett's much anticipated "Gold Rush", sold more than 25 million in advertising. The production budget for the show... next to nothing.
Why more producers don't jump into the space with both feet is beyond me. These portals don't have the content to generate revenue, and don't have the infrastructure to develop good content internally (as most brands will tell you). What I see is a huge gap, and an opportunity for tons of business to be done. Business that will ultimately weaken the bastions of power in the current creative climate. Distributors are weak. Agents are weak. When it comes to producing, creating, and profiting off of online content they all must figure it out as it happens.
That leaves brands and advertisers with all the power to create. The "industry" must adapt and savvy producers will look to partner with producers or consultants with strong links to brands. The capacity for dealmaking here is unprecedented.
