Richard Holmes talks the intricacies of Project Funding for filmmakers, drawing of 20 years of making films.

1. PROJECT FUNDING
with Richard Holmes of Creative England

2. usheru teamed
up with Curzon
Filmmakers
Club -
membership for
Film Hackers

3. financing
uk independent
low budget
feature films
January 11th 2016

7. context
• independently financed & distributed
• … and projects ready to go to finance

8. common factors
• contained
• cast with actors not stars
• dialogue heavy/character driven
• locations not studios
• minimal SA’s
• minimal SFX/VFX/stunts

9. principles
• flat
• transparent
• equitable

10. what’s the secret?
• risk empathy

11. ugly ducklings
• end user problem
• small population
• international sales

12. more trouble
• fins & chrome
• re-positioning
• stars

13. Creative England
• CE/BFI - what’s the difference?
• the funds
• the future

15. financing
• who’s involved?

16. financing
• producer/production company
• riter/director
• talent agents/manager
• talent - director/cast - as “package”
• distributor/broadcaster/funds
• sales agent - pre-sales

17. financing 2
• equity financiers
• banks/lenders
• co-producers
• tax breaks (and financiers)

18. financing 3
• completion bond & insurance...
!
• ... and then a “greenlight” maybe, please?

19. screenadvantage.com
• two lattes a month
• four inputs/eight outputs
• standardisation
• nothing wrong with the truth

21. sales & licensing
• who’s involved?

23. sales & licensing
• international sales agent
• buyers’ rep
• producers’ rep
• (maybe) producer

25. sales & licensing
• what’s involved?

27. sales & licensing
!
• markets & festivals
• delivery
• collection

29. packaging = catch-22
• Cast
• Confidence
• Cash

31. offers & availability
• exclusive offers
• offers subject to & reading/meetings
• available & technically available

33. never-ending story
fppprep
fin. - to - fin. close
cast/dir./reps.

34. packaging = catch-22
• Cast
• Confidence
• Cash

36. cate loves my film
• good news?

37. du jour 1
• crowdfunding
• equity-based crowdfunding

38. du jour 2
• private - EIS & SEIS

39. who invests?
• HNW and/or SI = angels
• back-leg-of-horse...
• ... but the dinner-party-moment
• want to see, smell, feel
• legacy

41. S/EIS top-tips
• SPV/2x bank accounts
• NEDs
• non-FCA = strict system
• detailed tracking
• have a “rehearsal”

42. what’s the secret?
• risk empathy

44. waterfall
• vital for investors
• deferments
• corridors
• gross!

45. waterfall
Territorial Advances
Collection Agent
Sales Agent
Equity
EquityParticipants
Overages

47. waking ned US
• how can something that cost $3m...
• ... took $25+m theatrically...
• ... be $9m in the red?

48. • end of part 2

49. Searchlight
$5m advance
$14m p&a
$25+m fbo
$12m rental
35% commission
interest
net = -$14m
dvd & tv = -$9m

50. the last aside

51. … after 20 years