fund.

A SAMPLE OVERVIEW OF RAISING INDEPENDENT FILM FINANCE

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content.

1. content.

2. about.

3. market.

4. strategy.

5. structure.

6. budget.

7. schedule.

8. potential.

9. direction.

about.
Independent feature lm nance is experiencing another revolution - as budgets shrink and higher production value is achievable for less than ever before. However, alternative investment injections have continued to dry up as the world economy reshapes - opening up new challenges and with them new possibilities. Fund. proposes an independent feature lm production company that capitalizes on the rapid digitalization of lm production, distribution and exhibition. Fund. is further designed for the production of one feature length picture under ve specically developed principles off-setting risk & nancial exposure: 1. Raising private equity at the low budget feature lm range between $1M - 3M with a limited number of investors maximizing the return on investment and simplifying the overall nancial structure - before taking advantage of state and federal tax incentives to protect the investment exposure up to 60%. Approaching the major ve talent agencies - William Morris Endeavor, United Talent Agency, Creative Artists Agency, The Gersh Agency and International Creative Management - for the packaging of quality source material - script, paired with proven name talent - actors and director, under the representation of a successful in house sales agent. Taking a careful approach to green lighting the project and moving forward with production by requiring unanimous consent from producers, sales agents and board of directors before proceeding. Team brings a wealth of knowledge, experience and relationships to the production phase in order to properly execute a feature lms full production schedule. All the while, mindfully nurturing the creative necessity without neglecting the overall commercial nature of the lms back end. Approaching both a pre-sales, in place distribution and market strategy to optimize back end protability. Targeting the major markets - Cannes, Berlin, Sundance, Tribeca, Toronto - the same sales agent who packaged the lm oversees the nal sale.

2.

3.

4.

5.

market.
market problem.
The market is over saturated.

fund solution.
Fund. builds a researched marketing, sales and long term plan before cautiously green lighting production. The heavily saturated markets are navigated wisely by assessing the major barriers - most commonly a lack of marketing exposure for smaller lms. Fund. raises a $1M - $3M investment allowing for limited union interference, major star attachments and production value on par with bigger budget lms audiences have come to expect. Fund. develops a unique and original human based concept appealing to both high and low brow audiences whereas the Studios fair for sequels, prequels, re-boots and mindless effect heavy productions. Fund. structures the green lit project on a properly scheduled time line allowing for minimum costs, maximum creativity and top tier above the line talent. Fund. shrinks the risk of investment by vastly minimizing the overall production budget while retaining the projects quality. By taking advantage of state tax incentives (up to 30%), federal tax incentives (Tax Code 181) and pre-sales agreements - overall investment exposure is limited to 40-50%.

The excessive funding and wasteful spending of production.

The absence of original content.

A lack of efciency during production.

Major risk degree of investment.

strategy.

Fund. is produced for $1M - $3M including development, production, post production as well as P&A costs. Fund. deploys $100,000 - $200,000 of this budget Print & Advertising campaign. Fund. is targeted directly at the major lm markets of Berlin, Toronto, Cannes, Venice, Sundance, Tribeca and the emerging South By South West. Fund. is developed to premiere at a major festival, screen on a limited to limited wide theatrical run of 100 - 500 screens internationally and sell to a boutique distributor such as HBO, IFC, Magnolia, Focus Features or Miramax for broadcast, VOD and content streaming.

Fund. conducted research on similar projects and determined that the conservative estimated for an overall gross of $2,500,000 based upon a $1M investment for an overall prot of $1.5M.

3000000 2250000 1500000 750000 0

THE STRATEGY FIGURES ARE DERIVED FROM TAKING 100 FEATURE FILMS IN THE $500,000 - $900,000 BUDGET RANGE, SUBTRACTING THE TOP TEN HIGHEST GROSSING FILMS, SUBTRACTING THE BOTTOM TEN LOWEST GROSSING FILMS, AND THEN TAKING THE AVERAGE OF THE REMAINING GROSSES AS THE CONSERVATIVE ESTIMATE OF RETURN.

structure.
Fund. incentivizes each of its partners through a participation plan that enables immediate return:

ownership structure.
position.
INVESTOR(s)

responsibilities.
$1M - $3M equity nancing and voting share for green lighting of production.

ownership.
100% rst dollar & 65% share ownership second dollar. 20% share ownership second dollar.

COMPANY

Sourcing material, nancial management, physical oversight including casting, crewing & production management through delivery. Sales agency, talent agency, talent points, distribution fees and services.

ABOVE THE LINE

15% share ownership second dollar.

Fund. increases ability to bring on strong sales oversight, notable cast & crew and simplied investment structure through participation.

budget.
gure. $50,000 $100,000 purpose. result.

Attach script by a track record proven Small audience following writer - represented by chosen agency. Draw for name talent/director Professionally skilled Attach name Director with previously successful projects - represented by chosen agency. Small audience following Draw for name talent Professionally skilled Capable of quality results

$100,000 $150,000

$150,000 $250,000

Attach name talent in key leading roles - Major audience following represented by chosen agency. Strong performances Publicity abilities for the project Attach Director of Photography with Small audience following successful record - represented by chosen Incredible abilities agency. Increase projects overall value Attach professionally skilled production Incredible abilities labor while avoiding union interference Low costs for big results by keeping costs low. Achieve successful production Attach post production team of Post Small audience following Supervisor, Editor, Sound Mixer, Incredible abilities Composer and Colorist. Take a strong project and make it exceptional total. = $1M

$50,000 $70,000

$200,000 $250,000

$100,000 $125,000

SUBURBAN TURBAN 5/1/13 24 DAY SHOOT - 4 WEEK PREP SAG-AFTRA MODIFIED LOW AGREEMENT w/ INCENTIVES WRITER, DIRECTOR, PRODUCER : ARUN VIR PREPARED BY BUFFALO 8 PRODUCTIONS

Acct# 12-00 PRODUCERS UNIT 13-00 DIRECTION 14-00 CAST 14-01 ATL TRAVEL

Category Description

Page 1 1 1 2 5 6 6 8 10 10 11 13 13 13 14 15 16 17 18 20 22 23 23 24 24

Total $2,500 $31,000 $26,512 $179,359 $16,500 $255,871 $10,000 $79,600 $63,048 $13,200 $9,725 $50,300 $38,850 $10,000 $39,700 $30,300 $24,175 $47,735 $18,875 $78,125 $85,130 $598,764 $38,250 $100,000 $17,000 $155,250 $20,000 $70,000 $90,000 $255,871 $844,014 $1,099,885 $1,099,885

11-00 STORY, RIGHTS & CONTINUITY

TOTAL ABOVE THE LINE COSTS 19-99 BTL TRAVEL 20-00 PRODUCTION STAFF 21-00 EXTRA TALENT 22-00 SET DESIGN 23-00 SET CONSTRUCTION 25-00 SET OPERATION 27-00 SET DRESSING 29-00 PICTURE VEHICLES & ANIMALS 30-00 WARDROBE 31-00 MAKE-UP & HAIRDRESSING 32-00 LIGHTING 33-00 CAMERA 34-00 PRODUCTION SOUND 35-00 TRANSPORTATION 36-00 LOCATION TOTAL PRODUCTION COSTS 45-00 EDITING 46-00 MUSIC 47-00 POST PRODUCTION SOUND TOTAL POST PRODUCTION COSTS 67-00 PRODUCTION INSURANCE 68-00 CONTINGENCY TOTAL OTHER COSTS Total Above-The-Line Total Below-The-Line Total Above and Below-The-Line Grand Total

schedule.
production challenge. fund solution.

Production is the most important phase of the Proper preparation and scheduling process. alleviates a majority of the tension and stress of production. Production drags on too long and causes A strong management team, experienced budgetary overages. crew laborers and creative department heads allow for the project to be completed on time and budget. Production is often rushed causing artistic, A 90 page script produced on a 24 day technical and irreversible errors. shooting schedule allows the director proper time on set while keeping overall costs minimum - averaging under 4 pages per day. Production requires millions of dollars to Carefully choosing the script, director and achieve the proper results that modern production elements such as the locations, audiences have come to expect. camera format and logistics - production is vastly simplied.

potential.