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    5 Replies Latest reply on Sep 16, 2008 6:01 PM by mrkip2001

    NEWBIE seeking Investment Advise

    mrkip2001 Newbie

      Hello I am Ramsey Hill the owner of Spikes Hill Production, a film/television production company in Jacksonville Fl. I am seeking knowledge on where to find some serious investors for my next two film projects. Currently do the the area we're operating in I'm looking for an investment of $100,000 (this will cover equipment and all personnel), and offering 90% of all distribution to the investors.

      Brief History.
      This company was originally suppose to be started in Atlanta, Ga. where I spent two years working at a local community televison station. Right after we set out to begin the company, my mother-in-law fell ill and had to have a pace-maker implant. So that her daughter would be with her we moved to Jacksonville, Fl. We (former partner and I) initially tried to keep the company in Atlanta, with me commuting back and forth, but this was too much to keep up. So my partner moved to Jacksonville.
      I quickly found out that the things he (partner) claimed to bring to the company wasn't the case, and found myself carrying the workload along on my shoulders. Due to the Jacksonville's market we found it harder to keep the company a float. We developed our first short film and was preparing it to be our introduction to the film industry, however his lack of expertise made the film not good enough for release. Since this disaster he has quit the company and moved back to Atlanta, but I still believe in this company, and it's potential.
      I am currently developing the first local television show to begin airing in October of 2008, but the economy is really putting a burden on me to keep the company going. I have spoken to serveral people about finding funds but most want me to put up money that I don't have so my only alterative is to seek out investment.
      So if anyone can point me in the correct direction it would be highly appreciated.
        • Re: NEWBIE seeking Investment Advise
          Fortis Wayfarer
          Hello,

          Hope all is well. Sounds like you have a couple good projects on your hands. How long has your company been in business? Have you considered financing the equipment seperatly to lower the amount of working capital needed?
            • Re: NEWBIE seeking Investment Advise
              mrkip2001 Newbie
              Well honestly I have not? It's a common misconception that most Film/Television company owns equipment.

              But there's a big difference between a company that creates Films/TV shows (Spikes Hill Production), and a company that shoots them. I don't think it's makes a lot of sense financially speaking to carry the overhead for equipment at this point. There are tons of qualified production companies in the area who has tons of equipment, and no work. This is one of the reasons it's so difficult for the layperson to find decent video production at a resonable price. Most of these type of company are really trying to make up for the cost of purchasing cameras and various items without no steady flow of work.

              A $5000.00 camera used four times a year bringing in a total of $1200 I would consider a bad investment.

              Currently our plan is rent the equipment neccessary for the two projects.
            • Re: NEWBIE seeking Investment Advise
              GrowthCurve Adventurer

              I will admit that I do not understand the economics of your business. Once I have a better understanding, perhaps I can help.

              First, are you looking for people to finance your overall company, or just specific projects? That is, can someone provide the funding for only one of the two films?

               


              I do not understand what you're producing or for whom. Are these films being done on spec? How do you make money on them? What's the potential upside here? What's the likelihood of success? Have you done this sort of thing profitably before? (That will be key...)

               

                • Re: NEWBIE seeking Investment Advise
                  mrkip2001 Newbie

                  I will see if I can answer this in parts.

                  Looking for people to finance company?
                  NO, we are not. We are looking for someone to help us bring two projects to market. Both of these scripts have been reviewed and given rave reviews. And in all honesty I could shoot them right now without a budget. But there are so many problems to deal with when people (actors - crew) are volunteering their time. Our goal is to produce these two films sacrafise potential profits to get these films made.

                  Yes, these two films will be produce an independent projects but will be shopped around for international distribution.
                  I am willing to discuss funding the only one of the films, however the amount of the split on distribution will have to be renegociated.

                  There are several upsides to investing in these projects.
                  First there is no doubt when this endeavor is completed whom ever has stepped up to help make it possible will NOT want to end this partnership; for we have several more feature films and television series in development. (At this stage it is more important that SHP gets a national or international distributed project to market. We're certian that the content of our projects will make this the only time when seeking out investors is a issue for our company.)
                  We have calculated the investment to it's minimal amount to increase the chance and amount of profit our investors will recieve. The amount of this investment covers every aspect from script to screen. Now I could shoot these films for much less or for a lot more money; but like I mentioned earlier the goal now is to put out two projects that tells the industry who Spikes Hill Production is and what we can accomplish.
                  The likelyhood for success is difficult to estimate at this stage there are a lot of factors involved in determine the success of this endeavor.
                  a) Distribution
                  The Distribution Company that picks up the film is key to it's success. If it's a international company, or just national. Do they have the capablities to place the films into theatres or will it be a straight to DVD projects. What type of retail stores is the company affiliated? What I can ensure you is there are several qualified distribution outlets for independent films and several has been quite successful, and even made it to HBO, and other outlets.

                   


                  And to answer your final question . . . NO! I have not done this before; and sincerely hopes that it's a once in a lifetime event. I will not lie . . . I'm looking for someone to invest in some films so I can not . . . nor will I attempt to promise anyone a certain return on their money. The Pros (Hollywood) drops 100 of Millions of dollars on project yearly and never sees a profit. This is a hit and miss industry - it's that plain and simple. But what we have is two projects that are on point as far as what people are looking for currently. They will not put you to sleep 15 mins from the start, and the ending will leave you talking about it for quite sometime after the final credits has rolled.

                   


                  I hoped I answered all of your questions, and again thanks for responding to this post.