SILK & Freedom 2K Films Investment Package


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Overview and investment terms for the documentary/dance film, SILK, and the production company Freedom 2K Films.

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SILK & Freedom 2K Films Investment Package

  2. 2. This investment package containsthe following…I.SILK Overview (6-8) SILKII.Production/Distribution/Marketing (10-14) A Freedom 2K FilmsIII.Freedom 2K Films Overview (16-17) ProductionIV.Investment Specifics (19-20) Directed by Benjamin Shearn Produced by Amanda Brown
  3. 3. Confidential Private Placement Memorandum FREEDOM 2K FILMS, LLC Number of Units Offered Hereby: 100 Price per Unit: $1,000 The Units are being offered by the Minimum Aggregate Subscription: Company on a ʻbest effortsʼ basis. All $1,000 subscription payments will be deposited into a capitol account Maximum Aggregate Subscription: established by the CEOs of the $100,000 Company. All checks shall be made payable to: Freedom 2K Films. Freedom 2K Films (the “Company”) is a Los Angeles company created for After at least one (1) Unit (the the purpose of development and “Minimum Subscription”) are production of commercial motion subscribed for, a closing may be held pictures. as soon as practicable thereafter and the funds held in the Capitol account The Company is offering (“Offering”) will be released to the Company. Subsequent closings may be held after for sale to individuals (the additional subscriptions are received, “Investors”) a maximum of 100 shares up to the Maximum Subscription and (hereafter referred to as “Units”). at the same price as the first Unit sold. Each Unit will be offered at a price of $1,000. This offering is subject to THE OFFERING INVOLVES A negotiation dependant upon the SUBSTANTIAL DEGREE OF RISK. timing and specific investment THE DATE OF THIS CONFIDENTIAL situation. PRIVATE PLACEMENT MEMORANDUM IS January 11th, However, the first Unit issued at one 2013. particular price shall remain the price of the remaining units thereafter.
  4. 4. Freedom 2K Films Mission Together, these factors have driven up theStatement cost of making films such that mostThe purpose of Freedom 2K Films is to productions require subsidization bycreate original, visually engaging films corporate entities. However, with thewhich explore the lives of singular advent of HD technology, professional-characters leading unique existences. grade cinematic imagery can now beFurther, our films strive to represent produced quite affordably, allowing films tosub-cultural points-of-view too often enjoy profit margins previouslyoverlooked by mainstream cinema, be unimaginable. For instance, the mostthey feminist, marginalized gender or profitable film of all time isnʼt Star Wars orsexuality identities, or under-exposed Avatar – itʼs Paranormal Activity, whichpolitical and sociological perspectives. was shot for $13,500 and earned an “The great hope is that... astounding 420,000% return for its some little girl in Ohio isExecutive Summary investors. going to be the new Mozart andSimply put, films are too expensive. make a beautiful film… and the Microfilmmaking is the business model of so-called ʻprofessionalismʼThey cost exorbitant amounts to the 21st century. about movies will beproduce, market, and distribute, whichhas given rise to the commonplace It is the goal of Freedom 2K Films to destroyed… and it will reallyattitude that “itʼs impossible to get a maintain artistic and executive control – become an art form.”film made these days.” There are and create significant returns for investorsnumerous reasons for this: 1) The cost – by KEEPING PRODUCTION COSTS -Francis Ford Coppola onof shooting on film formats increases DOWN. The company will utilize personal Microfilmmakingyearly. 2) In the digital age, the relationships amongst its principals to workexplosion of online marketing budget-consciously with professionalopportunities has multiplied the actors, producers, and technicians, and further reduce risk by maximizing taxexpenses necessary to adequately credits, promotional subsidies, foreign pre-promote a film. 3) Due to marketplace sales, and collaborating with financialrealities and competition, the fees and partners when appropriate.commissions demanded by abovethe-line principals (producers, Freedom 2K Films is not in the Blockbusterexecutives, directors, actors etc.) business; itʼs in the Return On Investmentcontinue to balloon. business.
  5. 5. PIC
  6. 6. SILK: The Film The Label The DocumentaryFounded by Amanda Brown, 100% Silk is a burgeoning In June, 2012 four core acts from the label – L.A. Vampires, Ital,Independent record label and tastemaker in the evolving and Magic Touch and Maria Minerva – embarked on a lengthy groupexpansive world of underground dance music. tour through the UK, Europe, and beyond.With strange synchronicity, the last half-decade has seen a 100% Silkʼs in-house videographer Benjamin Shearn chronicledsteady but subtle rise in sideways and forward-thinking the performances, cultural environments, and global scene ofapproaches to the aesthetic of dance music. 100% Silk is at the the many cities through which the trip travels, ranging from Berlin to Brussels to Paris to London to Moscow, Madrid, andforefront of this extraordinary cultural shift. more. “…the 100% Silk aesthetic is closer to that of But SILK isnʼt just a tour documentary. In addition to intimate Factory Records, the legendary Manchester label tour and performance footage, this film will weave in FULL that turned a lifestyle… into a business venture.” CHOREOGRAPHED DANCE SEQUENCES. -LA Weekly It is our ambition to create a cinematic study of the many ways “…responsible for some of the planetʼs most in which music can be expressed, discussed, and experienced. exciting underground music.” As the label 100% Silk continues to challenge definitions of -FACT Mag dance music, this film will do the same for documentary filmmaking. “100% Silk could probably lay claim to being the hippest dance label in the world right now.” -The Guardian Visit Type in the password: “silkdoc” “…their bonafides have earned them tastemaker status…” And get a taste of what was captured in Europe. -The Fader
  7. 7. Creative Principals of SILK Amanda Brown Benjamin Shearn Mecca Vazie Andrews Producer Director/Editor Choreographer For the last Benjamin Shearn is the in-house Mecca Vazie Andrews film and stage credits eight years, videographer for Not Not Fun Records include Bedtime Stories for Disney, RENT, Brown has and 100% Silk. You can check out his Grammys with David LaChapelle, MTV been the co- work at Movie Awards, Hysterica Dance Company, owner and art Sony Industrials, VH1s Showgirl director of His first film is the documentary Bootcamp, City Opera and American Not Not Fun short Tim O. which won a Telly, Gold Apparel. Records, and Hermes and Crackleʼs Editorʼs Choice Los Angeles the owner of Award. Fans rallied behind Shearnʼs initial Times, Rolling 100% Silk, efforts to fund SILK donating over $5,000 Stone Magazine influential on IndieGogo. In addition to filmmaking, and Paper independent Shearn has developed a number of Magazinelabels that have spearheaded a number of screenplays with production companies are some ofunderground musical movements. In May such as Nine Yards Entertainment. the publications2011, Not Not Fun was the cover story of the that haveprestigious London based music magazine, featuredThe Wire (issue #327). Brown has been Mecca and herfeatured in L.A. Weekly, Pitchfork, Vogue, choreography.i-D, Tank, Spin and The Guardian. In additionto her curatorial work on the labels, Brownperforms as L.A. Vampires which has been Take a look at the moves and collaborationswidely covered in print and on the of Mecca at
  8. 8. The Artists Featured in SILK L.A. Vampires Ital Maria Minerva Magic Touch “These factors, combined “[Daniel Martin-McCormick, “Most alluring, however, is “Willfully weird and allwith a perfectionist air and a aka Ital] subverts the the postmodern siren call of around adventurous are seemingly natural edge, is expectations and structures Minerva herself. Indeed, she just a few things you can what has led to some of house music. By makes for an iconoclastic say about Damon Palermoʼs striking releases of great reining in his more abstract club diva. Her singing music, better known as intrigue, in addition to a impulses, [Ital] has delivered evokes the alienated soul of Magic Touch.” distinctive set of as messy and thoughtful a Nico, but as if it were filtered -Magnetic Magazine collaborations since the take on house as were through a primitive software instigation of [Amanda likely to hear this year.” program.” Brownʼs] L.A. Vampires -Pitchfork -Interview Magazine moniker.” -Tiny Mix Tapes
  9. 9. Locations Equipment & Crew SILK is, in many ways, an extension of the music video The documentary footage for SILK was shot on the collaboration between Benjamin Shearn and 100% Silk. Panasonic HPX 250, an industry-grade HD camera. Shearn which has established a number of free locations around and the label have developed a fluid working relationship Los Angeles including art galleries; Synchronicity, Human with cinematographer P.J. Gaynard and his rental Resources and Public Fiction amongst others. Location company, GoatMilkFudge Productions. To complete SILK a rentals are usually a significant percentage of any production budget. For SILK, the location budget is expected number of dance sequences still must be shot. While this to be less than 5% overall. This means most of the involves lighting and camera equipment, absolutely no production budget will go toward achieving the best, most sound will be recorded which cuts technical fees in half. cinematic visuals possible. Shearnʼs music video experience Choreographer Mecca Andrews also along with Gaynardʼs proven teaches dance at the Edge professionalism is a tight, low- Performing Arts Center and can cost two man crew that will provide both free rehearsal space, satisfy any and all technical and a number of staging areas for dance sequences. Production Strategy demands of the shoot.SILK has one essential component In filmmaking there arethat very few films and even less unavoidable costs, more often thandocumentaries have going for them: not on the technical end. SILK has aThe support and vast resources of number of factors already in placean established and respected record label. The worlds of that relieve the heavy financial burden of most productionmusic and film often overlap, and since SILK is a definite schedules. 60% of the film is already shot and paid for. Aʻmusic documentary,ʼ many of 100% Silkʼs collaborators are, successful IndieGogo fundraising effort brought in over $5,000;by osmosis, the filmʼs collaborators. People like Brian Foote, which enabled Shearn to travel to Europe with 100% Silk anda music producer and professional sound mixer; Bobby capture over 50 hours of tour and performance footage, artistHoulihan, a graphic artist who works for Nickelodeon; and interviews, various off-the-grid locations and global danceJillian Cainghug, a professional stylist. Also, the cost of fans. Moving ahead with the staged dance component of themusic supervision and procurement (usually as much as film requires minimal scheduling, rehearsal and shooting - less15% of a filmʼs budget) is virtually non existent. than three months total which allows the production, asAll this, due to: always, to: Utilizing The Label Keep Costs Down
  10. 10. Distribution Strategy Festival CircuitSILK will be submitted to the following festivals: Cannes, Sundance, Venice, Toronto International, NewYork, Telluride, Berlinale International, London and others. Relationships with programmers at Southby Southwest and other festivals with a musical component are already in place due to 100% Silkʼseclectic and far reaching profile. The rising popularity of Electronic Dance Music (E.D.M.) fares well forSILKʼs festival prospects. Foreign Pre-Sales and DistributionOnce SILK is accepted into prestige festivals, Freedom 2K Films will offer the film to Sales Agents such asDogwoof, RocoFilms, WestEnd Films and others. A deal is reached, then the Agent will shop the film to majordistributors such as Lionʼs Gate, IFC Films and Indomina Releasing. 100% Silk is quite popular in Europe, andFreedom 2K Films will use this leverage to negotiate the most lucrative foreign pre-sales figure possible. Themusical and “party culture ” appeal of SILK makes it a strong contender for U.S. theatrical distribution,especially in targeted E.D.M. friendly youth markets such as Brooklyn, Los Angeles, San Francisco, Austinand, of course, Detroit and Chicago - two of the birthplaces of house music. Streaming and Video On Demand (V.O.D.)For many films there is a new distribution model: streaming online through Netflix and Hulu and/ormaking the film available on pay-to-play formats like Amazon Instant Viewing and Vudu. Recent independentfilms like Margin Call and Bachelorette have made their money back and then some almost entirely throughV.O.D. sales. To keep marketing and exhibition costs down, SILK will launch an aggressive online streamingand V.O.D. campaign to ensure its audience (which skews younger and gets most of their entertainmentonline) finds and supports the film.
  11. 11. Marketing & Publicity: Requiem MediaAshley Ayers at Requiem Media is the current publicistfor 100% Silk. Requiem also represents the reigningqueen of indie synth-pop, Grimes. The profile of this newfirm has elevated in the past year into a major PR player.Requiem has agreed to represent SILK oncecompleted and launch a multi-tiered online viralcampaign. Requiem has relationships with influentialhigh-traffic music websites (i.e. Pitchfork & The Fader) aswell as prominent entertainment news outlets such asMTV, Spin Magazine and Under the Radar.Requiem will also work with 100% Silk to creategrassroots buzz for the film within the dance musiccommunity. Special screenings followed by 100% Silkpromoted dance events will be set-up in Los Angeles,New York and at music festivals like South bySouthwest. These “screening parties” will drawaudiences in with exciting dance music line-ups andintroduce SILK right in the heart of its majordemographic.Because of this unique relationship between 100% Silkand Requiem Media, SILK has a marketing head start thatvery few documentaries possess.
  12. 12. The Audience for SILK “Once marginalized as a novel European import, electronic dance music, or E.D.M., has become the dominant trend in American pop these days. Its lively synthetic beats and booming bass lines are inescapable, and its top D.J.ʼs draw sold-out crowds to outdoor raves like Electric Daisy Carnival and even rock bastions like Lollapalooza and Coachella, earning them thousands, if not millions, of dollars for a single set.” -The New York Times The influence of E.D.M. can be heard in nearly every top 40 hit today. D.J. and club culture grows more and more popular yearly. Thus, the audience of SILK can be divided into two categories: Built-In: Fans and contemporaries of 100% Silkʼs music are a guaranteed ticket/V.O.D. purchase. 100% Silk moves 3,000 digital downloads and receives over 4,000 unique hits on their website every month. Thatʼs a reach of over 80,000+ fans from all over the world per year - a healthy-sized audience to begin a more expansive global marketing campaign. E.D.M. Crossover: Millions of fans of dance music are always on the lookout for related media; videos, live footage and, of course, films. A feature-length E.D.M documentary and DANCE FILM is something no one has ever attempted before and will be sure to cause a stir with fans of this exceedingly popular genre.
  13. 13. SILK Revenue ProjectionsAn experimental documentary Visually striking documentary An expressionistic portrait of that uses music and dance about the underground choreographer Pina Bausch, as sequences to tell the story of dance movement ʻkrumping,ʼ told through performances ofvarious residents of the Salton which emerged from L.A.ʼs inner Bauschʼs most famous dances. Sea. city. Budget: 150K Budget: +/- 1 Million Budget: 4.2 Million Gross: 1.8 Million Gross: 4.6 Million Gross: 14.6 Million Potential Earnings for SILKForeign Market Pre-Sale Range: $500K-2 Million US Distribution Purchase Range: $100K-1 Million Projected Theatrical and V.O.D. Gross Range: $750K - 3 Million Total Projection: $1-5 Million or 1,000-5,000% Profit Margin For more details see “Proposed Investment Terms” (19).
  14. 14. Freedom 2K Films: Slate 1) THE SOUR KRAUT 2) LADY WORLD 3) KAROOA subtle and engaging character study of A modernized all-girl Lord of the Flies Based on the novel by Academy- a young playwright as she attempts to with the feminine mystique of Picnic Award winning screenwriter Steve stage her most personal play to date. at Hanging Rock and The Virgin Tesich, Karoo is a scathing look at Suicides. New York in the late-eighties, a However, as the production goes milieu of unscrupulous producers south, she begins to mistrust the Gradually, but with creeping intensity, from the West Coast, dry cleaning, company performing her work, and nine teenage girls at a birthday party divorce, and fantasies of escape. her own talent as a writer. turn on one another after they are The film will fuse cinema and theater trapped by an earthquake at a rich, Freedom 2K Films is in talks with elements to create a wholly unique take isolated estate high in the hills above literary agency Gelfman-Schneider toon the difficulty of bringing writing to life. Los Angeles. option the film rights. BUDGET: 1.2 Million BUDGET: 5 Million BUDGET: 50K Other works in development include DRAIN YOU - an adaptation of M. Beth Bloomʼs comedic paranormal romance novel set in the mid-90ʼs. UHH YEAH DUDE - a documentary performance film based on the popular L.A. podcast; CHICAGO SUNDRIES - a quirky late 60ʼs coming-of-age story; and AGE OF BACKWARDS - a nostalgic, expressionistic take on middle-school friendship and loss.
  15. 15. 3-Year Expense Projections Film 1 Budget: $50,000 Film 2 Budget: $1.2 Million Film 3 Budget: $5 Million 3 Years Working Capital/ Company Payroll/ Purchases/Loan Payments: $750,000 Total Expenses: $7,000,000 Note: The average production costs of a profitable independent film are anywhere from 5-30 million. Utilizing its resources and industry connections, Freedom 2K Films will produce three films for the price of one film. And an inexpensive film at that.
  16. 16. Proposed Investment Terms SummaryThe maximum subscription investment of 100 Units ($100,000) is awarded a total of 50% of revenue of not onlySILK but the SUBSEQUENT TWO FILMS produced and sold to distributors by Freedom 2K Films. Which meansthat each Unit is awarded 0.5% of revenue from SILK, THE SOUR KRAUT and LADY WORLD.Letʼs say an Investor came in for 5 Units ($5,000). As soon as SILK generates revenue, either from foreign pre-sales ordomestic distribution, that $5,000 is paid back. INVESTORS ARE ALWAYS PAID FIRST. Before producers. Beforeprincipals. Period. After the initial investment is paid back, the Investor would then receive 2.5% of every dollar earnedfrom SILK revenue. If SILK ended up with 3 million in revenue, the Investor would be awarded $75,000 (2.5% of 3million).But hereʼs where Freedom 2K Films is offering a rare and nearly unprecedented investment opportunity: That 2.5%return will STAY IN PLACE for the next two films produced by Freedom 2K Films. So, if the total combined revenue ofthe next two films is 37 Million, the Investor would be awarded an additional $925,000 (2.5% of 37 Million). Thatʼs a million dollar return on a $5,000 investment.
  17. 17. Additional InformationThis package is very much an overview of theSILK and Freedom 2K Films investment. Thefollowing documents are available by request:-Risk Factors-Itemized Budgets-Itemized Expense Reports-Projected SILK Pre-Sales (by Region)-Projected SILK Revenues (Theatrical & V.O.D.)-Offeree Questionnaire-Subscription Signing AgreementAnd, of course, the full Subscription Agreement.This offering is subject to negotiation dependantupon the timing and circumstances of the specificinvestment situation. However, the first Unitissued at one particular price shall remain theprice of the remaining Units thereafter byoperation of law.Please direct any questions or requests to:Benjamin Shearn, co-CEO, Freedom 2K Films323-217-9579 / benjamin.shearn@gmail.comAmanda Brown, co-CEO, Freedom 2K Films818-269-2288 /