Investors Corner

Currently, most of the funding sources are involved in the production or exploitation of the film funded

Lately, various private sources of equity money for the film industry have emerged

FINANCING A FILM

PRODUCERS

Because of their role in the production of the film, producers contribute a significant part of the budget

TV CHANNELS

Many of TV channels have to conceed a portion of their revenue to film production funding

DISTRIBUTORS

Distributors participate to the funding of films development and production, typically through the payment of minimum guarantees, and then take in charge the distribution and promotion of the film

GOVERNMENTAL GRANTS

Across Europe many institutions and grants exist and provide funds for producers from the development to the promotion of their work

PRIVATE FUNDINGS

In Europe, there are 6 private sources of funding:

20 specialized funds

20 tax-based funds

15 commercial banks

15 venture capital

1 business Angel network

TRADITIONAL PRE-FINANCING

Decrease in the traditional pre-financing fundings from TV channels and distributors. For instance in France, the first contributor among TV channels, Canal +, has disminished its contribution to films production by 25,5% (282m €) in 2018.

FILM FINANCING PROCEDURES

DEVELOPMENT

3 months min.
Purchase of rights.
Adaptation of existing book or story.
Scenario.

PRODUCTION

2 to 3 months
Unanimous agreement to start the production
Fundings are released
Shooting

EXPLOITATION

+Infinity
Theater release
Distribution on local and foreign markets
Diffusion on all media supports

PRE -PRODUCTION

3 months min.
Budget & financing plan
Preparation of the production

DISTRIBUTION

2 months
Communication strategy
Teaser
Press and media publicity

WHAT WE PROPOSE

chinema

TO THE INVESTORS

  • Offer an uncorrelated and diversified class of assets
  •  
  • Propose an attractive risk & return investment
  •  
  • Selection of low risk projects (multi country diffusion, recognised casting, reliable partners)
  •  
  • French fund managers with experience in the cinema and finance industries
  •  
  • Recognized, solid and reliable partner producers and third party providers

TO THE MARKET

  • Inject a new dynamic into the film industry by developing new private financing models
  •  
  • Create synergies between the cinema and finance industries in order to increase the transparency on the market and ensure a fair sharing of proceeds
  •  
  • Support international films not only via gap financing but also as from the development and financing plan phase, acting as co-executive producer

OUR FUND

TYPE OF FUND

Alternative Investment Fund
Regulated by the AIF Manager Directive

DOMICILIATION

Luxembourg
EU marketing passport
Benefits from Luxembourg and European grants and loans

TARGET

10 million on first fundraising
12 million euros then

The goal is to raise 55 million euros within the next 5 years

MATURITY

5 years
Capital closed during a 5 years immobilization period

COSTS

Management fees ~ 3% of the fund raised
Brokers success fees 3%

ROI

IRR gross investors 9%
30% return on investment over the next five years