ESSENTIAL CRITERIA that we suggest that investors consider when choosing projects in which to invest.
- There should be at least one established or recognised actor attached.
- There should be an experienced director attached.
- There should be an accomplished cinematographer attached.
- The project should have a strong script.
- A reputable sales agent should be attached, who should prepare the sales estimates.
- The budget should be adequate to successfully transfer the script to screen to a professional standard, whilst being commercially competitive enough to enable recoupment.
- A skilled producer should be attached capable of bringing the film or TV production in on budget.
- Pre-sales to at least major territory should be confirmed to pressure test the accuracy of the sales estimates. Whilst this is relevant for a theatrical release, it may be a different scenario for a streamer deal e.g. Netflix.
- A comprehensive plan should be in place for the distribution of the film. For TV productions, a commission should be in place with an established broadcaster.
- To protect your investment, the capital sum and premium should be as high as position as possible in the recoupment waterfall.
- Get the best back end deal you can. If you are fully funding the production, you should seek 50% of net profits and/or a pro-rata share based on your investment percentage. The remaining 50% is usually retained by the Producer who may have to share with the talent.
- An established bond company should be in place to protect the financial position of investors.
- Only invest what you can reasonably afford to risk.
Peacock likes to encourage new filmmakers and we are impressed with the script of the short film “Black Money” which has a crowdfunding campaign