PROJECT FUNDING with Richard Holmes of Creative England

usheru teamed up with Curzon

Filmmakers Club -

membership for Film Hackers

financinguk independent

low budgetfeature filmsJanuary 11th 2016

context

• independently financed & distributed

• … and projects ready to go to finance

common factors

• contained

• cast with actors not stars

• dialogue heavy/character driven

• locations not studios

• minimal SA’s

• minimal SFX/VFX/stunts

principles

• flat

• transparent

• equitable

what’s the secret?

• risk empathy

ugly ducklings

• end user problem

• small population

• international sales

more trouble

• fins & chrome

• re-positioning

• stars

Creative England

• CE/BFI - what’s the difference?

• the funds

• the future

financing

• who’s involved?

financing

• producer/production company

• riter/director

• talent agents/manager

• talent - director/cast - as “package”

• distributor/broadcaster/funds

• sales agent - pre-sales

financing 2

• equity financiers

• banks/lenders

• co-producers

• tax breaks (and financiers)

financing 3

• completion bond & insurance...

!

• ... and then a “greenlight” maybe, please?

screenadvantage.com

• two lattes a month

• four inputs/eight outputs

• standardisation

• nothing wrong with the truth

sales & licensing

• who’s involved?

sales & licensing

• international sales agent

• buyers’ rep

• producers’ rep

• (maybe) producer

sales & licensing

• what’s involved?

sales & licensing

!

• markets & festivals

• delivery

• collection

packaging = catch-22

• Cast

• Confidence

• Cash

offers & availability

• exclusive offers

• offers subject to & reading/meetings

• available & technically available

never-ending story

fppprep

fin. - to - fin. close

cast/dir./reps.

packaging = catch-22

• Cast

• Confidence

• Cash

cate loves my film

• good news?

du jour 1

• crowdfunding

• equity-based crowdfunding

du jour 2

• private - EIS & SEIS

who invests?

• HNW and/or SI = angels

• back-leg-of-horse...

• ... but the dinner-party-moment

• want to see, smell, feel

• legacy

S/EIS top-tips

• SPV/2x bank accounts

• NEDs

• non-FCA = strict system

• detailed tracking

• have a “rehearsal”

what’s the secret?

• risk empathy

waterfall

• vital for investors

• deferments

• corridors

• gross!

waterfall

Territorial Advances

Collection Agent

Sales Agent

Equity

EquityParticipants

Overages

waking ned US

• how can something that cost $3m...

• ... took $25+m theatrically...

• ... be $9m in the red?

• end of part 2

Searchlight

$5m advance

$14m p&a

$25+m fbo

$12m rental

35% commission

interest

net = -$14m

dvd & tv = -$9m

the last aside

… after 20 years