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PHASE  1 :  CREATIVE PACKAGE DEVELOPMENT

Greenlights & Approvals

  • Preliminary budget and schedule created and approved 

  • Creative: Script, Look Book, Deck and other creative approved

  • Production Plan approved

  • Marketing plan approved 

  • Finance plan approved

  • Project is greenlight

  • Funds allocated for packaging 

1.1

Package Asssembly

  • Script acquisition for $15,000 against $50,000 purchase price

  • Development LLC established: "Last Mile Productions, LLC"

  • Director Emma Chen secured with $25,000 pay-or-play deal

  • Sophia Rivera attached as lead with $250,000 pay-or-play offer

  • Key department heads committed (cinematographer, production designer)

  • Detailed lookbook and visual treatment approved with Key lead input

1.2

Team Validations

"The creative package for 'The Last Mile' demonstrated exactly what we look for: a fresh take on a proven genre with distinctive visual elements and strong talent attachments. Emma Chen's unique directorial vision brought a new perspective to the thriller format that resonated with our creative committee."

 

— Sarah Johnson, Head of Development

Independent Film Financing Guide

Example Project: "The Last Mile"

This project and all names are made up and all info is assumed to be correct.  

To illustrate our process, let's follow the journey of one of our "recent" productions, "The Last Mile," from initial concept to market release.

Project Overview

THE LAST MILE: A high-tension thriller about a delivery driver who becomes unwittingly entangled in a criminal conspiracy during her final shift.

  • Budget: $3.5 million

  • Director: Emma Chen (award-winning festival circuit filmmaker)

  • Cast: Featuring Sophia Rivera (recognizable lead) with strong supporting cast

  • Return: Projected 1.8x ROI in base case scenario

  • Timeline: 9 months from greenlight to completed film

PHASE  2 : INITIAL FINANCING ROUND

Equity Structure

  • Target raise: $1.2 million (35% of budget)

  • Capital call

    • Idaho Film Fund I, LP

  • Investment terms:

    • 130% first position return

    • 60% of backend profits after initial return

    • Minimum investment: $50,000

2.1

Pre-Sales Strategy

  • Our global sales team secured pre-sale agreements in key territories:

    • UK: £200,000 ($250,000)

    • Germany: €180,000 ($200,000)

    • France: €150,000 ($165,000)

    • Japan: ¥20M ($175,000)

    • Australia: AUD200,000 ($150,000)

  • Total pre-sales: $940,000

  • Net pre-sales value after sales agent commission: $799,000

2.2

Team Validations

"Pre-sales for 'The Last Mile' exceeded our initial projections by 15%. The combination of Emma Chen's festival credentials, Sophia Rivera's growing international fanbase, and the film's universal thriller elements made it particularly attractive to international distributors."

 

— Michael Torres, Head of International Sales

PHASE  3 : TAX
INCENTIVES & GAP FINANCING

Tax Incentives

  • Full production plan approved and ready to go

  • Key to our production strategy is maximizing tax incentives:

    • Primary shooting location: Georgia

    • 30% transferable tax credit

    • Qualified spend estimate: $3 million

    • Projected tax credit value: $900,000

    • Net tax credit value after broker fee: $855,000

3.1

Gap Financing

  • To complete our financing structure, we secured advantageous gap financing

  • Gap lender: Media Finance Capital

    • Loan amount: $600,000

  • Terms:

    • 15% interest rate

    • 2.5% origination fee

    • 18-month term

    • First position on unsold territories

3.2

Team Validations

"Our production team's thorough location analysis identified Georgia as optimal for 'The Last Mile' - not only for its significant tax incentives but also for its diverse urban and rural landscapes that perfectly matched the script requirements."

 

— David Williams, Line Producer

PHASE  4 : FINANCIAL
CLOSING  

Required Documentation

  • Production Legal

    • Investment agreements

    • Pre-sale contracts

    • Chain of title documentation

    • E&O insurance policy

    • Completion bond

    • Banking agreements

  • Creative Elements

    • Final shooting script

    • Budget and schedule

    • Key cast/crew agreements

    • Location agreements

    • Production insurance

4.1

Final Finance Structure

  • Equity: $1.2M (34.3%)

  • Pre-Sales: $799K (22.8%)

  • Tax Credit: $855K (24.4%)

  • Gap Loan: $600K (17.1%)

  • Deferrals: $46K (1.4%)

  • Total: $3.5M

4.2

Team Validations

"What makes our financing approach so powerful is the integration with our greenlight process. By the time we close financing, we've already validated the creative, production, and marketing components - dramatically reducing investor risk."

 

— Robert Henson, CFO

PHASE  5 : RECOUPMENT
WATERFALL  

Waterfall

  • First Position

    • Gap loan principal and interest

    • Completion bond fee

    • E&O insurance premium

    • Collection account fees

  • Second Position

    • Equity investors (130% return)

  • Third Position

    • Deferred fees

    • Producer fees

    • Sales agent commissions

  • Fourth Position (Net Profits)

    • Equity investors (40%)

    • Studio (10%)

    • Producers (25%)

    • Director (12.5%)

    • Lead Actor (12.5%)

5.1

The CO\\OP Studios Advantage

  • Our integrated approach to film financing offers several key advantages over traditional independent film models:

    • VERTICAL INTEGRATION

    • TRANSPARENCY

    • RISK MITIGATION

    • ACCELERATED TIMELINE

    • PORTFOLIO APPROACH

5.2

Team Validations

"What makes our financing approach so powerful is the integration with our greenlight process. By the time we close financing, we've already validated the creative, production, and marketing components - dramatically reducing investor risk."

 

— Robert Henson, CFO

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