The country and often the citizenry of a nation play a role in how viewers engage and view movies as well as how movies are scripted and produced.  Subtleties pervade into the Indie genre as well.  China’s Indie film scene is very much about social spheres of influence to which film is an enabler of a move toward a more open and transparent society.  Surprisingly, one ostensibly has greater freedom of expression with regard to Indie film creation in China than in the U.S.

“Let me start by making a provocative statement – in my three years of distributing and working with Chinese independent filmmakers, I’ve experienced greater creative freedom than in ten years of producing independent film in the United States.” – Karen Chien (Indie Film Producer)

Passion is arguably the underlying emotion that draws movie goers to the theater.  Movies generally evoke emotion to which the big screen provides the mechanism to maximize the output of the movie inputs.  For such reasons, consumers of entertainment continue to pay the $10 or so dollars to attend the movies in the U.S., and in China, are experiencing a rise in attendance to movie theaters.

The audience is important when considering funding of Indie movies in particular markets.  If one does not understand what is selling, then funding of movies which are likely to fail will receive a higher underlying probability of failure.  Movies that generate emotion are expected to generate revenue in China as the social medium is understood to be the medium of the Indie space.  Such movies typically are funded with backing of the state, which supports domestic and foreign projects that do not promote or instigate social dissent regarding government regulation of social media and entertainment.

The funding sources are indeed different.  The indie movie project must be independently reviewed and authorized to receive approval for development as well as funding.  It is unwise to seek outside funding after receiving the state funding award and if accepting outside investment, such activity should be disclosed when submitting the project.  Developing an indie movie in China ostensibly isn’t about the budget involved.  The genre seeks to establish an independent voice that can unify the core of China to its periphery using art established and transmitted in the form of digital and electronic media.

Perhaps the best method for investors seeking to invest into China based indie films is to register an investment vehicle on mainland China and establish an indie film investment relationship with Chinese government officials.  Understand that underlying the deal is not financial gain, but an opportunity to participate in shaping Chinese culture, for which there is a financial reward.

(C) Vidia Ramdeen, Ricochet Alternative Asset Management (2012)

Sources:

http://www.beijingfilmfest.org/

http://www.fandor.com/blog/what-indie-films-can-learn-from-china-and-five-tips-to-start-learning/

Past deals include Indian private equity firms financing Hollywood blockbuster movies and a 2010 slate with $50mm sought by a film financing firm for development and production of an initial release of motion pictures consisting of six underlying projects.  A syndicate of financiers from Europe and Russia converged to meet on this opportunity.  Whether the syndicate financed the film, for purposes of this posting, remain irrelevant.  What matters, the financing firm pitched in Europe and Russia.

Perhaps of more importance with regard to R.I.C.E., are the expected revenue numbers generated by cinema viewers, notably within Russia, India, and China.  Additionally, the streaming media revenue from various secondary distribution releases and primary streaming or disc playback formats is expected to be very profitable from these emerging economies where the population is approaching 1billion or over in aggregate.

Source:

http://www.businessofcinema.com/news.php?newsid=15771

http://articles.economictimes.indiatimes.com/2010-01-10/news/28416683_1_film-financing-private-equity-film-business

http://www.linkedin.com/groups/Film-Finance-Awards-Warsaw-Poland-3508198.S.102033757?qid=246da7ed-b7d1-438e-a59d-6fa02975d313&trk=group_most_popular-0-b-cmr&goback=.gmp_3508198

http://alchemy.secondmarket.com/offtheexchange/hollywood-2-0-film-finance-meets-crowdfunding/

Given the hit-or-miss financial success of U.S. and international films, film funding and not slate film financing has become a popular method to spread the risk among a syndicate of investors.  Until recently, a widespread method of slate film financing included a single entity investing assets into a portfolio of movies.  The investor block finances a percentage of the underlying slate portfolio, or in some cases, the entire portfolio.  Investors that foot the bill for an entire portfolio do so for Indie films with a 3% growth (2010-11) and with a successful 28th edition Sundance Film Festival in 2012, as such the Indie venue appears appealing to the single alternative risk-averse investor.  The typical RoR on Indie films range from 10% to 25%.

The alternative slate film financing approach is investing into a portfolio of, for example,  mainstream box office films (U.S.).  Many investors will invest into the portfolio and therefore own a percentage of the return.  The expected modified rate of return increases as a function of the aggregate budget.  For this reason, many investors like to be on-set to see how the underlying operations of the film are going.  This is to determine whether the money is being squandered away, undermining the MIRR.

All will agree that overall film financing investment options have increased over the past decade.  In general, given the ups and downs, the industry has been able to whether the rough economic tides and provide a reasonable risk-averse RoR and MIRR.  Film Funding is yet another method of reducing the underlying risk and ensuring the underlying yield will be realized.

Source:

http://www.baselineintel.com/research-wrap?detail/C8/good_news_from_sundance_indie_films_still_sell

http://www.baselineintel.com/research-wrap?detail/C8/indie_box_office_beats_the_odds_with_3_gain_in_2011

http://www.businessofcinema.com/news.php?newsid=15771

http://www.allaboutindiefilmmaking.com/2009/05/what-rate-of-return-should-you-offer.html

http://gillengroupllc.com/wp-content/uploads/2012/04/April-27-2012-Conference-Flyer.pdf

“As a non correlated asset class, films and film finance has outperformed every non correlated asset class in the world”, states Yuri Rutman, head of media finance and consulting firm Noci Pictures ( www.noci.com ). “If you look at the more than $6 billion dollars poured into motion picture finance deals in the last 3 years, the IRR across the spectrum for both studios and independents are resilient to global economic declines in other industries.”

The Company is looking to bring on board an experienced hedge fund, private equity, or alternative investment capital raiser to identify U.S. and international private equity partners in both institutional and retail sectors in closing a $300 million dollar structured media & entertainment fund that would not only finance 20-30 films, but have the infrastructure in place for U.S. Theatrical Distribution either with one of a few major film studios the company is in talks with, or, as a stand alone distributor similar to Lions Gate or Summit Entertainment.

“The reason Wall Street, Silicon Valley, the Middle East, Asia, or European investors are all secretly wanting to be in the film business is that there is an exponential growth in terms of distribution channels. With digital cinemas on the rise, digital print costs minimal, the evolution of same day theatrical and video on demand releases, as well as leveraging global social media and marketing for lower cost advertising and word of mouth branding, filmed entertainment will always have revenue streams.  Even tech investors are starting to look at movies as technology in terms of their delivery methods as well as productions that utilize 3D or heavy CGI”, Rutman states.

Source- http://www.prlog.org/10363641-hedge-fund-job-in-film-finance-targets-hedge-fund-managerswealth-advisors-venture-capitalists.html

MoviePartners.com brings together producers, entrepreneurs, film investors, and screenwriters to develop higher-quality, more influential, and more profitable film and commercial projects. Over the last 15 years it has been its goal to become the filmmaker’s information services hub. They are in the process of revitalizing themselves and, by extension, the filmmaking community at large.

MoviePartners was founded in 1996 and created an award-winning filmmaker’s entertainment services community. They now provide location scouting, film crew lists, talent directories, etc., to that community. Its aim is to solidify a resource pool for those in pre-production to final cut. The phrase “it’s not what you know but who you know” is being rewritten here.

MoviePartners is now spreading its influence in the commercial development arena with innovative, less expensive approaches to quality filmmaking. Through the cooperation of its supporters, vendors, and founding members alike, they are setting new industry standards for high-quality production and low production cost.

From the earliest days of the Internet, MoviePartners assembled the contacts, experiences, and resources necessary to help its members succeed. Today will be nothing short of relentless towards completion of your specific project needs, start to finish.

In 2008, they redesigned and rebuilt the entire technology infrastructure of MoviePartners to better accommodate filmmakers and investors alike. They now offer services for the 21st Century, making it even easier to access and use the information they provide. They have a comprehensive refresh plan for all of their sites in the upcoming months of 2008 that will expand their capabilities, and yours.

“innovative”…“dynamic”…“exciting”…“rewarding”

Defending Art from Compromise
MoviePartners.com is a privately held company subscribing to fair and ethical business practices. Our film investors always have the highest quality products to peruse. At no time will art be compromised for profit.

Source-  http://www.moviepartners.com/About/

Some hedge fund managers watch Oscar ceremonies with great interest to see their funded films among the winners.

Several Oscar nominees, including hits such as “The Pursuit of Happyness”, “Blood Diamond” and “Borat,” were partially financed by hedge funds, loosely regulated pools of capital that are restricted to institutional investors and wealthy individuals.

Wall Street’s fascination with film financing has grown in recent years, with several private investment firms making agreements with major studios to co-finance slates of movies over a period of years.

With names like Relativity Media and Virtual Studios, these firms do not have the cachet or name recognition of the big studios. They certainly will not be sauntering up to the podium and thanking their agent should their films get an award. Even so, a win at the Oscars could be rewarding.

Relativity Media helped finance “Happyness,” whose lead actor, Will Smith, is up for Best Actor. An affiliate of Dune Capital Management, a hedge-fund firm once controlled by financier George Soros, kicked in money for “Borat,” the guerilla comedy starring Sacha Baron Cohen that is a nominee for Best Adapted Screenplay. And Virtual Studios, which is backed by the hedge fund Stark Investments, has invested in “Blood Diamond,” which is up for five awards, as well as the disaster-film flop “Poseidon,” which garnered a nomination for best visual effects.

This list reflects the growing ties between Hollywood and hedge funds and private equity firms, which have invested billions in movies since 2005, Bloomberg News reported last month. Two investors in MGM, the movie studio, are the buyout firms Providence Equity Partners and Texas Pacific Group.

It can be a risky business. Legendary Pictures, another hedge fund vehicle, has caught flack for its investments in box-office bombs “Lady in the Water” and “The Ant Bully.”

Yet some of these companies seem to have found gold in the Hollywood Hills. “Borat” cost an estimated $18 million to produce.  The tale of a fictional Kazakh reporter’s adventures in the United States has earned about $128 million in domestic box office.

Source-  http://dealbook.nytimes.com/2007/02/23/hedge-funds-at-the-oscars/

Movies that Matter, an initiative of Amnesty International, wants to open people’s eyes to human rights through film.
Movies that Matter has a strong international focus, resulting in a growing number of international activities. It promotes human rights film screenings worldwide, offers advice and assistance and stimulates the exchange of knowledge and experience. It stresses the use of the power of film to promote the observance of human rights a social change.

Apply for Funding

Movies that Matter offers modest monetary assistance to initiate human rights film festivals and to help circulate and exhibit human rights films in Africa, Asia, Eastern Europe, and Latin America.

Advise, Assistance & Echange

Do you want to organise a film festival or host a screening, but you don’t know where to start? Do you need more information on what films to choose for your project or how to clear the rights? If yes you can refer to Movies that Matter (www.moviesthatmatter.nl)

Source-  http://www.moviesthatmatter.nl/mtm/site/internationaal.vm?gclid=CK3_7OGgnqcCFYEOfAodDz8udA

Green Light Film Funding take pride on honesty and their ability to structure unique funding solutions that are not available in the traditional lending arena. The Funding Options, like those of any other industry, have changed drastically within the last 12 months. However, with GLFF’s combined 34 years of experience they know how to structure these difficult deals in today’s always changing environment.

Whether your film has most or none of the funding required this fund can provide solutions that exist outside the traditional sources. Fund’s investors realize the potential of funding films and that your film may be the next “Juno”,”Garden State” or “Passion Of The Christ”.

At Green Light Film Funding they eat, sleep and drink film financing. Whether you are a film maker or potential investor we look forward to sharing your vision and working together with you and your team in the near future.

     You can submit film projects for funding consideration. GLFF offers some incentives for film producers and various opportunities for investors to finance films 

Source-  http://www.greenlightfilmfunding.com/

The UK Film Council is the Government-backed lead agency for film in the UK ensuring that the economic, cultural and educational aspects of film are effectively represented at home and abroad.

Who they are and what they do The UK Film Council was created in 2000 and is the Government-backed lead agency for film delivery in the UK; Since its creation the UK Film Council has been the cornerstone of the British film industry and the funder of most of the big cultural film initiatives –  backed more than 900 films, shorts and features, entertained more than 200 million people and helped to generate approximately £700 million at the box-office worldwide.  For every £1 of Lottery money it has invested, £5 has been generated at the box office, allowing them to reinvest that recoupment straight back into new British films; Tim Bevan, co-founder and co-chairman of Working Title Films, is its Chairman, Tim Cagney is Managing Director; The UK Film Council currently employs 73 people across film development and production, inward investment, certification, co-production, film exports, statistics, distribution and exhibition, MEDIA Desk UK, industry relations, film partnerships across the UK, etc; Film Council funds and works with a number of different partners across the UK – including the regional and national screen agencies, the BFI, Skillset, First Light and FILMCLUB; Their goal is to help make the UK a global centre for film in the digital age, with the world’s most imaginative, diverse and vibrant film culture, underpinned by a flourishing, competitive film industry; Its support develops new filmmakers, funds exciting new British films and gets a wider choice of films to audiences throughout the UK. Council also invests in training, promoting Britain as an international filmmaking location and raising the profile of British films abroad; The Lottery money they distribute is key to keeping the engine of British film creativity running.

Diversity is one of our key policy priorities. They aim to help the UK film industry build a more diverse workforce: behind and in front of the camera.

UK Film Council is nurturing film talent, assisting the industry and celebrating film culture. This Film Fund is a new unified production and development fund dedicated to British filmmaking. It facilitate UK film’s contribution to the UK economy

Source-  http://www.ukfilmcouncil.org.uk

Film Finances was founded in 1950 for the purpose of giving guarantees of completion to financiers of motion pictures. At the time, producers of motion pictures were finding it increasingly difficult to borrow money from banks because the producers could not show how budget overages, if any, could be met. The original founders of the company were film producers who had learned that mortgaging all they owned against potential budget overages was not a sound proposition. Film Finances was therefore formed to provide financiers with a service that gave them the assurance that the film would be delivered on time and that the over budget costs would not be the financier’s responsibility.
FFI has given completion guarantees to all the leading banks involved in the entertainment industry, as well as all the major studios and distributors of motion pictures. FFI has now guaranteed the completion and delivery of approximately 6,000 Feature Films, Television Series, Movies of the Week, Films on Tape, Documentaries and CD-ROM Productions shot in all parts of the world.
 
Production Evaluation

As soon as an inquiry is made for them to issue a guarantee, they request the script, the shooting schedule and the budget.They prefer that all three documents have already been approved by the financiers and distributors of the picture. Documents are carefully examined to be sure on feasibility. When a positive decision is made, a “letter of intent” is issued by them confirming that they are prepared to go forward with the giving of a Guarantee of Completion, subject to the fulfillment of certain stated conditions. Most conditions are considered standard and apply to such things as financing, personnel, insurance and location agreements. The letter of intent will also list a number of budget for which we are not responsible. These above-mentioned conditions are incorporated in an undertaking required of the producers. The letter of intent specifies FFI’s fee for the giving of such a Guarantee.

The Legal Stage

When a letter of intent is issued and the project is approved, they then commence work on the legal documentation. This is all done in-house. In preparing the documents, FFI requires the fulfillment of certain standard conditions, such as, the assurance of financing equal to the approved budget, available and capable personnel, and satisfactory insurance, studio and location arrangements have been made. In addition, they require the documents that entitle the production company the rights to make the film
Film Finances is entirely an independent completion bond company with no affiliation. Being truly independent they are able to advice without the risk of any potential conflict of interest. Consequently, it is able to act in order to protect the interests of our clients at all times.

Monitoring Production

FFI needs to be satisfied at all times that the production whose completion we have guaranteed progresses satisfactorily and on schedule. However, it does appreciate that making motion pictures is a creative process employing fine talents.  FFI enjoys having a very close relationship with our producers, directors and key production personnel, and they are convinced that these relationships are more valuable than placing someone between us. Their monitoring process requires the production to fax to us daily shooting progress reports and a weekly cost report in order to properly evaluate the progress of the film. FFI also makes periodic visits to the shooting area.

The process of completing a motion picture continues well after the end of the actual filming. It also has a very experienced post production staff that monitors the post production of a film via a schedule and updated cost reports until the film is actually delivered to the distributor.

Source-  www.ffi-web.com/