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redsoxny

posts: 2

Apr 27, 2009 5:07 PM ET    Quote  Report Abuse
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I`ve been looking at gobignetwork.com but have some doubts (partially due to the upfront fee).

I started a film company, we have two films, both on IMDB, both award winners at festivals (one won best mini-feature this past weekend), however they`re both mini-features/shorts. In order to expand into the realm of feature film (what you usually see in the cinema), we need the money for equipment/payroll/etc. 

As a member of the Austin Film Society, I`m under their 501(c)(3) umbrella making all donations tax-deductible -- how much will that really help, though? 

For 100-200K, we can make a competitive film, but we need closer to the 750K-1M mark to make a heavyweight.

I`m offering extra incentives besides the 501(c)(3) -- film/IMDB credit, passes to the screening, production tours, post-screening parties, the ability to be an extra, etc.

I just can`t tell if it`s enough. Are there other good places to look for angels (VCs probably aren`t as interested in startup film companies, I`d guess)?
robertj

posts: 1458

Apr 27, 2009 5:25 PM ET    Quote  Report Abuse
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redsoxny,

First of all, you will need to choose whether you want to create a for profit enterprise or be a not for profit.

People and companies support charitable organizations for their own reasons - but those reasons are quite different than the reasons why they invest in a business.

By law, you cannot sell ownership in a not for profit entity.

 

 



-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com


redsoxny

posts: 2

Apr 27, 2009 6:02 PM ET    Quote  Report Abuse
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Hi Robert,

I`ve not turned in any non for profit paperwork. My company does not have a mission statement that is purely for public good. 

However, as an individual artist, I am able to fall under the fiscal sponsorship of a 501(c)(3). One of the things I`m trying to discern is whether or not this fiscal sponsorship will provide greater funding than, say, a C-corporation. 

Because of the nature of the line of work, it seems to fall into a grey-ish area: as an individual artist, I`m under the 501c3 umbrella; as a film company, we are a for profit company.
robertj

posts: 1458

Apr 27, 2009 6:14 PM ET    Quote  Report Abuse
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Generally speaking, if you are personally producing films for the "public good" - the not for profit association may be an asset.
 
In the for profit category, you may find it beneficial to separate the capital requirements for the company from those needed for a specific film.
 
If you want to delve into your specific situation in confidence, send me a PM or contact me directly.


-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com


FastVentures

posts: 306

Apr 28, 2009 11:38 AM ET    Quote  Report Abuse
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I think Robert is correct in assuming that contributors to non-profit organizations do so for a variety of reasons. Most of the times, contributors are touched by a certain subject or issue and decide to open their wallets to support awareness, the search for a cure, or simply to provide relieve.

The film business isn’t any different. Let’s assume that your movie is a documentary about orphans living in the slums of Calcutta, or child brothels in Thailand, your film would be an excellent fit for a number of charitable contributors.

If your film doesn’t focus on a social theme or agenda, you might be better off pursuing the for-profit route. That doesn’t mean that from now on you can only pursue for-profit projects. You can simply create a single purpose corporation that raises funds for an individual project or film.

Our firm has done this years ago for an award-winning director, whose short film subsequently garnered three Emmy Awards. Since the single purpose corporation would only handle a single film, this would neither affect your status as an artist or other charitable projects.  

If you’re interested, you can download a sample private placement memorandum for such a single purpose corporation – the purpose being to develop, produce, and market an independent motion picture/short film – from our website at:

http://insights.fastventures.com/premium/samples/ppm07082008/index.php

If you require further insights into how to communicate with potential investors in such a private placement or Regulation D Offering, you can download our free white paper at:

http://insights.fastventures.com/is-bin/guides/htg10302208/index.php


I hope this helps.



Mark



-------------------------


Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com
eugenedarin

posts: 21

May 17, 2013 2:42 AM ET    Quote  Report Abuse
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You have a lot of work to do if you want to expand into the realm of feature film, it is not easy to find sponsors ready to invest in your film company when you have only 2 films, even if they are on IMDB. I am sure that if you will find sponsors and make a film like House at the end of the street movie you will have a lot of success, hopefully we will hear from you soon.



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