fund. A SAMPLE OVERVIEW OF RAISING INDEPENDENT FILM FINANCE
WWW.BUFFALO8.COM
content.
1. content.
2. about.
3. market.
4. strategy.
5. structure.
6. budget.
7. schedule.
8. potential.
9. direction.
about. Independent feature film finance 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 film production company that capitalizes on the rapid digitalization of film production, distribution and exhibition. Fund. is further designed for the production of one feature length picture under five specifically developed principles off-setting risk & financial exposure: 1.
Raising private equity at the low budget feature film range between $1M - 3M with a limited number of investors maximizing the return on investment and simplifying the overall financial structure - before taking advantage of state and federal tax incentives to protect the investment exposure up to 60%.
2.
Approaching the major five 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.
3.
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.
4.
Team brings a wealth of knowledge, experience and relationships to the production phase in order to properly execute a feature films full production schedule. All the while, mindfully nurturing the creative necessity without neglecting the overall commercial nature of the films back end.
5.
Approaching both a pre-sales, in place distribution and market strategy to optimize back end profitability. Targeting the major markets - Cannes, Berlin, Sundance, Tribeca, Toronto - the same sales agent who packaged the film oversees the final sale.
market. market problem.
fund solution.
The market is over saturated.
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 films.
The excessive funding and wasteful spending of production.
Fund. raises a $1M - $3M investment allowing for limited union interference, major star attachments and production value on par with bigger budget films audiences have come to expect.
The absence of original content.
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.
A lack of efficiency during production.
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.
Major risk degree of investment.
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%.
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 film 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 profit 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.
responsibilities.
ownership.
INVESTOR(s)
$1M - $3M equity financing and voting share for green lighting of production.
100% first dollar & 65% share ownership second dollar.
COMPANY
Sourcing material, financial management, physical oversight including casting, crewing & production management through delivery.
20% share ownership second dollar.
ABOVE THE LINE
Sales agency, talent agency, talent points, distribution fees and services.
15% share ownership second dollar.
• Fund. increases ability to bring on strong sales oversight, notable cast & crew and simplified investment structure through participation.
budget. figure.
purpose.
result.
$50,000 $100,000
Attach script by a track record proven • Small audience following writer - represented by chosen agency. • Draw for name talent/director • Professionally skilled
$100,000 $150,000
Attach name Director with previously successful projects - represented by chosen agency.
$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
$50,000 $70,000
Attach Director of Photography with • Small audience following successful record - represented by chosen • Incredible abilities agency. • Increase projects overall value
$200,000 $250,000
Attach professionally skilled production • Incredible abilities labor while avoiding union interference • Low costs for big results by keeping costs low. • Achieve successful production
$100,000 $125,000
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
• • • •
Small audience following Draw for name talent Professionally skilled Capable of quality results
SUBURBAN TURBAN 5/1/13 24 DAY SHOOT - 4 WEEK PREP SAG-AFTRA MODIFIED LOW AGREEMENT w/ INCENTIVES
Acct#
Category Description
WRITER, DIRECTOR, PRODUCER : ARUN VIR PREPARED BY BUFFALO 8 PRODUCTIONS
Page
Total
11-00 STORY, RIGHTS & CONTINUITY
1
$2,500
12-00 PRODUCERS UNIT
1
$31,000
13-00 DIRECTION
1
$26,512
14-00 CAST
2
$179,359
14-01 ATL TRAVEL
5
$16,500
TOTAL ABOVE THE LINE COSTS
$255,871
19-99 BTL TRAVEL
6
$10,000
20-00 PRODUCTION STAFF
6
$79,600
21-00 EXTRA TALENT
8
$63,048
22-00 SET DESIGN
10
$13,200
23-00 SET CONSTRUCTION
10
$9,725
25-00 SET OPERATION
11
$50,300
27-00 SET DRESSING
13
$38,850
29-00 PICTURE VEHICLES & ANIMALS
13
$10,000
30-00 WARDROBE
13
$39,700
31-00 MAKE-UP & HAIRDRESSING
14
$30,300
32-00 LIGHTING
15
$24,175
33-00 CAMERA
16
$47,735
34-00 PRODUCTION SOUND
17
$18,875
35-00 TRANSPORTATION
18
$78,125
36-00 LOCATION
20
TOTAL PRODUCTION COSTS
$85,130 $598,764
45-00 EDITING
22
$38,250
46-00 MUSIC
23
$100,000
47-00 POST PRODUCTION SOUND
23
TOTAL POST PRODUCTION COSTS
$17,000 $155,250
67-00 PRODUCTION INSURANCE
24
$20,000
68-00 CONTINGENCY
24
$70,000
TOTAL OTHER COSTS
$90,000
Total Above-The-Line
$255,871
Total Below-The-Line
$844,014
Total Above and Below-The-Line
$1,099,885
Grand Total
$1,099,885
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 simplified.
potential.
