Your SlideShare is downloading. ×
Europrix 2008 Creative Productions Financing Pelkonen
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Europrix 2008 Creative Productions Financing Pelkonen

678
views

Published on

Presentation on creative business financing challenges at Europrix 2008 in Graz.

Presentation on creative business financing challenges at Europrix 2008 in Graz.

Published in: Business, Economy & Finance

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
678
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
25
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Creative productions and financing: Some thoughts and learnings Tommi Pelkonen Business Consultant Finpro Hungary November 28, 2008 / © Finpro ry / 1
  • 2. • Global organisation of international business and consulting Finpro in brief professionals (~350 experts in above 40 countries) • Works to help Finnish companies to succeed wherever they are / © Finpro ry / 2
  • 3. • Global organisation of international business and consulting Finpro in brief professionals (~350 experts in above 40 countries) • Works to help Finnish companies to succeed wherever they are !quot;#$%& '()*)+#)& 3/(quot;+4%0& 56++6*7& (quot;quot;/*& ,+/)(+$2quot;8 ,+-.*/(0& +$%6*$2quot;+& )1')(2*)& )1')(2*)& / © Finpro ry / 2
  • 4. • Global organisation of international business and consulting Finpro in brief professionals (~350 experts in above 40 countries) • Works to help Finnish companies to succeed wherever they are !quot;#$%& '()*)+#)& 3/(quot;+4%0& 56++6*7& PROCESS (quot;quot;/*& ORGANISATION ,+/)(+$2quot;8 ,+-.*/(0& +$%6*$2quot;+& )1')(2*)& )1')(2*)& / © Finpro ry / 2
  • 5. • Global organisation of international business and consulting Finpro in brief professionals (~350 experts in above 40 countries) • Works to help Finnish companies to succeed wherever they are !quot;#$%& INSIGHT '()*)+#)& FORESIGHT 3/(quot;+4%0& 56++6*7& PROCESS (quot;quot;/*& ORGANISATION ,+/)(+$2quot;8 ,+-.*/(0& +$%6*$2quot;+& )1')(2*)& )1')(2*)& / © Finpro ry / 2
  • 6. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 7. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 8. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 9. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 10. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 11. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 12. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 13. Introduction: learnings from megaprojects It is not about ROI (return on investment), it is about return OF investments! / © Finpro ry / 3
  • 14. What are we talking about? Project Finance: The financing of an asset where debt service and returns on equity are derived from the cashflows generated by the asset / © Finpro ry / 4
  • 15. Financing as structure Sharing future revenues may a new source of financing also for digital media productions / © Finpro ry / 5
  • 16. Financing as structure Sharing future revenues may a new source of financing also for digital media productions / © Finpro ry / 5
  • 17. Financing as structure Sharing future revenues may a new source of financing also for digital media productions / © Finpro ry / 5
  • 18. Reality: answering tough questions from financiers? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 19. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 20. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 21. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 22. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? • Please tell me about the technology/solution/product/service/ production and the market you’re going after. NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 23. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? • Please tell me about the technology/solution/product/service/ production and the market you’re going after. • What segment of the market are you targeting and what is the competition doing in that market segment? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 24. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? • Please tell me about the technology/solution/product/service/ production and the market you’re going after. • What segment of the market are you targeting and what is the competition doing in that market segment? • Can you describe the technology architecture / production process and whether any of your technology / solution / product could be considered proprietary? Have you looked at the intellectual property rights around your offerings? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 25. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? • Please tell me about the technology/solution/product/service/ production and the market you’re going after. • What segment of the market are you targeting and what is the competition doing in that market segment? • Can you describe the technology architecture / production process and whether any of your technology / solution / product could be considered proprietary? Have you looked at the intellectual property rights around your offerings? • How much capital do you need to get started? How will you plan to pay my/our money back? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 26. Reality: answering tough questions from financiers? • I’m afraid I can’t remember how this meeting was set up and I don’t have any documents. Can you please remind me who referred you to me? • Please give me your personal backgrounds and tell me the story of how you know each other. • Do you really think you have the right experience to be the CEO of the company after this possible deal? • Please tell me about the technology/solution/product/service/ production and the market you’re going after. • What segment of the market are you targeting and what is the competition doing in that market segment? • Can you describe the technology architecture / production process and whether any of your technology / solution / product could be considered proprietary? Have you looked at the intellectual property rights around your offerings? • How much capital do you need to get started? How will you plan to pay my/our money back? • What valuation are you putting on the deal, and are you speaking with other finaciers? NOTE: Regardless of these, they may ALSO have personal interest towards your project! / © Finpro ry / 6
  • 27. What’s on financier’s mind? And you had a humble wish that they would be sinceraly interested about you and your production! :) / © Finpro ry / 7
  • 28. Multimedia producer’s concerns and trends • Companies are small and even smaller • Business is creative process driven • Producer mindset determining outcome • Finance is needed for development and implementation of creative processes, productions and projects • Competence and content key issues in assessment and evaluation • Combining creative and other professional resources crucial management challenge • Individual insight must in hit driven business • Messy business models • Lacking knowledge and expertise to fullfill investment criteria • Perceptions of the investors – lacking knowledge of creative businesses • Tailored financial tools not available - project development funding is needed Financiers, at best, know these and want to see how you cope with them! / © Finpro ry / 8
  • 29. Sources of finance for creative projects Mandate: aim to understand each group’s motives and needs for security on investment / © Finpro ry / 9
  • 30. Funding for digital media productions Can you position your production into this chain and struture? / © Finpro ry / 10
  • 31. Hint 1: Pitch in a structured manner Standardise & be ready to show them the money in max 10 min! / © Finpro ry / 11
  • 32. Hint 2: Use financiers’ lingua = numbers! Express your ideas in form of: Show and know the number game_ • Profitability: Ability to • Balance Sheet generate earnings/savings. • Income Statement • Liquidity: Measures • Statement of Cash Flows shortterm cash flow ability. • Changes in Financial • Solvency: Indicates Statements longterm financial health and stability. • Efficiency/Coverage: Suggests how well things are done. Put some of that passion to digital media into basics of business language! / © Finpro ry / 12
  • 33. Hint 3: Understand the motives of your investor Talk to stakeholders with their motives in mind / © Finpro ry / 13
  • 34. Hint 4: Convince them of you passion! • Investors want to work with passionate entrepreneurs they can trust on: • Substance • Ambition • Managing productions / projects • Track record • Competitive edge • Team of multi-talents • Business-understanding Show you passion - but keep science fiction out of the table :) / © Finpro ry / 14
  • 35. SUMMARY: How to make your financier to believe in you? • The availability of funds depends on the ability to convince providers of funds that the project is: • Lead and created by a team of trustworthy & talented people • Technically feasible • Ability to perform & deliver • Economically viable and profitable (with right motive) • You should talk their language - as much as they try to understand what you try to offer for them! • Develop your edge - not only conceptually and artistically, but also in your business-orientation! We know you can design excellent productions. BUT: can you design also you finance structure and approach? / © Finpro ry / 15
  • 36. Remember: Do not think that financier = easy access to money / © Finpro ry / 16
  • 37. Remember: Do not think that financier = easy access to money / © Finpro ry / 16
  • 38. Questions, thoughts, comments... 17
  • 39. 18
  • 40. For more information tommi.pelkonen@finpro.fi +36 -20 - 250 10 77 18

×