Film Producer raises Film Investment on Venture Giants
An entrepreneur based in London, UK that owns and operates a small film production company producing micro and low-budget films for domestic and international distribution successfully raised over 30% of the funds for his production of a romantic comedy film entitled, ‘Meet Me On The Southbank’ from a private investor that Venture Giants found for him. Remarkably, Venture Giants was the first place he had tried when trying to raise investment, and had not raised any funds prior to this as most of his productions had been self-funded.
Adam Rolston graduated from Royal Holloway University of London with an MA in Screenwriting for Film and Television and in 2009 wrote a successful stage musical/play that was transferred to London’s Wilton’s Music Hall in 2010 where it enjoyed a sell-out run. In 2011, the show later moved on and played at the Edinburgh Festival and then to the USA. The play featured extensively in the media, including the Daily mail reporting that:
It was from this success that Adam decided to write and Direct 'Meet Me On The Southbank' and to do this turned to Venture Giants with an Investment requirement of £25,000 as a micro budget.
Micro budget film production in the UK especially has seen explosive growth as these films are relatively cheap to produce and can yield phoenmal growth and exits in relatively short period of times for angel investors. An example of this is a micro film aptly entitled ‘once’ that was produced in 2007 for £40,000 and yielded a Sundance award and generated over $20m gross worldwide.
After submitting his Film development project to Venture Giants, we reviewed it, and offered some comments on it completely free of charge. Once the final draft was agreed and approved, Venture Giants handpicked the film investors, private investors and angel investors to send Rolstons film development project out to from it’s own vetted network of angel that can be seen here. The Angel investor database took Venture Giants over four years to build and has seen a decline rate of over 4 to 1 applications to use the service and has reviewed over 2500 applications from private individual, high net worths, angel investors, and venture capitalists.
As soon as Rolstons film investment proposal was sent out, Adam, almost instantly, started receiving investor contact requests from all types of investors that were interested in investing in Adam’s Film development project.
Rolston continued [it was from this contact that] "... I raised 30% of my target funds through Venture Giants - a significant amount.’ It is also safe to say that without Venture Giants, Adam would not have met this investor through his own Friends and Family network. The film is now scheduled to shoot for 15 days in March 2013 and will be filmed entirely on location on London’s South bank. Post Production will begin in April 2013.
In response to what advice Adam would give to budding young film entrepreneurs that were in similar situations to his and were seeking to raise film investment or even Angel investment for their Start-up:
Venture Giants does not take any commission on any money raised on our service nor from any joint ventures or synergistic opportunities formed by the contacts that are exchanged on our network. Adam was not charged a commission for the money that was raised – and was only charged a one off proposal listing fee of £99 after Venture Giants had sent out his investment proposal to over 400 UK and international based investors. The £99 fee also included unlimited investor contacts, and a six months listing period which is more than three times greater than our nearest competitor.
Venture Giants is a fast and convenient way to get investment proposals out to genuine, vetted, private individuals and angel investors that are looking to invest in UK start-ups and entrepreneurs.
Market Overview of the Film Industry for Investors
The UK has the third largest film market in the world and the industry makes a substantial contribution to the overall GDP.
In 2011, UK cinema admissions increased by 1.4% to £171.6m the third highest total of the last decade. The gross value of those ticket sales was £1,040 million, up 5% on 2010 Films.
Interestingly, films produced in the UK had a 17% share of the global box office in
2011, up by 14% in 2010.
Inward investment in films contributed almost £1bn which was the highest total recorded.
In 2011 there were 237 films produced in whole or part in the UK. 169 of the 237 were domestic UK features (of which 98 had budgets under £500,000) and 28 were inward investment films.
The UK film industry continues to grow and thrive.
LOW & MICRO BUDGET UK FILMS
The UK currently produces around 100 low and micro-budget feature films per year and around £18.5 million is spent on making them.
Awards won by the low and micro-budget films surveyed include Best Screenplay (Dinard), Best British Feature (Raindance), Best New Director (Edinburgh) and a number of acting and craft skills awards from UK and International festivals.
Approximately half the films secure some form of international showcase. Together with UK distribution, this generates net revenues of £5-6 million for their investors and/or makers. Only 18% of low and micro-budget films are released theatrically in the in the UK. 16% are released theatrically abroad.. 49% of films are sold or distributed in DVD/video format.
However, UK "Micro budgeted" success stories are proving that micro budget features be attention-grabbing and even profitable. Such as ONCE (2007) Made for £40,000 with untrained actors and without a professional crew. It secured spots at the 2007 Sundance Film Festival and the Dublin Film Festival and received the audience awards at both events in early 2007. It was acquired by Fox Searchlight Pictures
The Film 'Once' has grossed over $20 million worldwide. After 2007's box office success and critical acclaim, it won the 2008 Independent Spirit Award for best foreign film and an Academy Award for Best Original Song. Steven Spielberg was quoted as saying "A little movie called Once gave me enough inspiration to last the rest of the year"…..
Benefits to Angel Investors investing in the Film Industry:
As a start-up business the company was seeking an investment of £25,000 capital to produce its first feature film and the company qualified for the UK government's SEIS (Seed Enterprise Investment Scheme)
Key Investment Benefits to Angel Investors are:
- 50% income tax relief regardless of the marginal rate of income tax suffered by the individual
- Income tax relief carry back to the preceding tax year
- Capital gains tax exemption on ultimate sale of the shares provided the qualifying criteria are satisfied throughout the minimum 3 year holding period.
- Capital gains tax deferral for capital gains crystallised three years before or one year after the SEIS share subscription
- Income tax relief on the shares subscribed should the investment fail.
Angel Investors Venture Giants is a premier UK business Angel investment network that matches private investors with entrepreneurs that are seeking investment capital and business funding.
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