Faq

FAQs

Company Questions

Mediavestor is a Software as a Service (SaaS) platform that connects investors and content creators by managing and executing funding campaigns for entertainment and media projects. 

We are a cutting edge technology, film finance and investment company that helps Content Creators take advantage of the new trend in equity funding.

The market has proven that one of the best non-correlated alternative investments is film & entertainment.

We started Mediavestor for three distinct reasons:

1. To provide new sources of funding for independent Content Creators.
2. To afford Georgia Residents the option to invest in the growing film & entertainment community.
3. To alleviate the severe difficulties independent producers have in obtaining finance.

Mediavestor is a funding mechanism that offers investors the opportunity to invest in the entertainment industry and participate in its growth by sharing in downstream revenues.

Equity based financing is simply having investors contribute money—actual cash—to the production in exchange for an ownership interest in the film and the profits derived from the exploitation of the film. 

Additionally, Mediavestor hopes to grow homegrown talent in Georgia and find the next wave of Creatives.

Mediavestor is launching with feature films but will soon be moving into television, stageplays and indie music with broad appeal and profit potential for investors.

A separate LLC is set up for each production.

Investors buy shares in the LLC via the Invest Georgia Exemption (“IGE”) which was created in 2011 by the Secretary of State as Commissioner of Securities.

IGE allows for-profit businesses formed under Georgia law to raise up to $5 million from Georgia resident investors.

Investor Questions

Our goal is to save investors time and simplify the process of discovering and evaluating funding opportunities.

Non-correlated investment strategies can be used by investors to neutralize, or counterbalance, the risk that one, or more, of the investments in a traditional portfolio of stocks and bonds falls in value.

In order to do this, investors typically place between 5% and 20% of their total investment portfolio into alternative investments to protect the remainder of the portfolio from downside risk.

Eligible accredited investors and institutional investors both new to, and experienced in, entertainment and media investing.

As an investor on the platform, you can choose to back your favorite film or choose from a ‘slate’ of movies in order to diversify your investment.

Investors will have full access to our full archive and select any projects they like.

Investing in film, television and original content offers a high yield alternative investment that can be leveraged with tax credits, tax rebates, product placement and multiple streams of revenue included theatrical, video on demand, cable, OTT, mobile and foreign markets.

Even when times are bad, entertainment thrives because people want to escape their economic woes. 

Yes. All offerings that are compliant with the state rules and regulations will be listed on the platform and available to all Georgia accredited investors.

Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000 (excluding his or her primary residence); and any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

Our service is free to investors. There is no fee to register and open an account on our platform if you agree to abide by our User Agreement and corresponding Privacy Policy.

Any company or individual Issuer presenting an offering, (Content Creator) must pay an upfront listing fee that will be credited against the success fee.

Your equity investment funds are sent directly to the escrow account for the production company making and producing the film.

There can be no assurance of the economic success of any motion picture.

Many entertainment businesses fail and therefore investing may involve significant risk. You might lose all, or part, of your investment.

You should only invest an amount you are comfortable losing and should build a diversified, efficient portfolio to spread the risk.

There is no guaranteed ROI, and investing in actual movie production won’t necessarily make you a fortune, with occasional exceptions, of course.

No…because we will guide you through each step of the investment process.

Consider investing in indie moves as a non correlated asset class. Films and film finance have outperformed every non correlated asset class in the world.

Yes, we believe in the old proverb of not keeping all your eggs in one basket and strongly urge investors to diversify their investment portfolio with us by choosing to invest in each of our current film offerings. Diversify your portfolio as with any good investment strategy.

By holding a diversified portfolio, you should be able to reduce your exposure to individual asset risk.

Be in this for the long term, don’t gamble on one film. Look to finance 10, 20, 40, 50, 75 films instead; that way, there is more than just upside on revenues from each one but a final exit strategy after 5-7 years that can bring 300-400% returns on capital invested.

Each film offering has a different minimum entry.

On registration, you will receive the  investment documents which states the limits on each investment opportunity.

Regular newsletters of your production´s progress.

Invitation to all world premieres.

An invitation to be an extra in the film you invest in.

Invitations to any Award Ceremonies if the film is nominated.

Signed posters, photos and DVDs etc. from the stars of the film when available.

Option to become one of the Executive Producers of the film if your investment is high enough. You would then be entitled to have your name highlighted on the end credits.

You will be a part of the film´s everlasting history.

Receive outstanding returns.

When you see a pitch that you find interesting, click ‘I’m interested’. This will send a message to the Content Creator notifying them of your interest. You are now connected with them and they will be able to contact you to arrange further discussions and meetings.

No. Mediavestor cannot offer investment advice or recommendations regarding the offerings available.

This depends on the time it takes to complete all aspects of the production but, providing the film is successful, then you would be expected to begin generating returns after the worldwide box office release.          

We try to position our investors so that their investment is returned as fast as possible.

Depending on the offering, you would then receive 100% of your capital back plus an extra recoupment premium. This is usually paid out to you before any of the profits are available to the production company.

Investors can see their investment bring an immediate return from the monetization of state tax credits as part of the equity stream, an upside in investing in a number of films vs. investing in a single picture, and possible Section 168 benefits.

An investor has up to 48 hours prior to the end of the offer period to change their mind and cancel the investment commitment for any reason. 

Once the offering period is within 48 hours of ending, you will not be able to cancel for any reason even if you make your commitment during this period.

If a raise does not hit its target, investors’ funds will be released out of escrow back to the investors. Funds will not be released to the issuer.

Certain non-refundable fees paid by the issuer associated with establishing an escrow account will not be refunded.

The target amount is the first financial goal set by the Content Creator (Issuer). This amount needs to be reached during the funding period for the raise to be deemed successful and for the Content Creator (Issuer) to obtain the funds raised by the pool of investors.

The max amount is the higher amount set by the Content Creator (Issuer).

Once the max amount is reached the raise will close and no further monies can be invested.

You can keep on raising/investing past the target amount to reach the max amount but at that point no oversubscription will be allowed past the max raise amount.

We only promote films that have a guaranteed Completion Bond for our investors.

This means that, in the unlikely event the film production runs out of money prior to completing all of the editing or other post-production activities, the Completion Bond guarantees to the investors and producers that the film will be delivered to the distributor and undertake to cover any over-costs on the production.

These bonds are like normal insurance policies that take a small percentage of the film’s profits to indemnify the investor.

In addition to the Section 168 tax deduction, the motion picture can be filmed in a state with rebates or transferrable tax credits. By structuring a securities offering around federal and state tax incentives, it is possible for film and television producers to create a tax equity structure that is very competitive, and with the benefit of being able to participate in the perks of the entertainment industry.

As an example, if a $1 000,00.00 movie shoots in Georgia the state will issue a 30% transferrable tax credit, worth approximately $300,000.00, that can be sold to another Georgia company or resident. 

This is a considerable risk minimization for the Investor.
With state film incentives alone, the investor is only risking 70 cents (average) on the dollar if the project is produced in Georgia. Combining Section 168 federal tax break with a state film tax rebate can reduce an investor’s risk by 50-100%.

Like bridge loans, tax credits can be helpful in filling in the gap between the money a filmmaker raises and the budget of the film. 

Thanks to the Invest Georgia Exemption, Georgia-based companies and Georgia-based investors can engage in equity-based financing and general solicitation of investors in accordance with applicable state and federal anti-fraud (and other applicable) securities laws.

Depending the project and the securities offering, some projects are available for the general public via the Invest Georgia Exemption while other projects are only for “Accredited” investors.

This platform is designed to be used by sophisticated investors or investment professionals. 

Our investor dashboard provides information—in plain language—about each opportunity and gives you the tools to manage your investments so you can make sound decisions.

Investors can download the Private Placement Memorandum and the Subscription Agreement for legal purposes.

The investor will also have access to movie scripts, producer and director biographies, storyboards, attached talent, profit potential, comparables, and other information related to the movie project.

Once an investor has received their initial investment back plus the recoupment premium, they will be entitled to a percentage of all the profits the movie or entertainment project generates.

The amount is determined by the number of investors and can range from 20% to 50% profit participation in perpetuity on a pro rata pari passu basis of all the movie’s lifetime profits. 

In the investing world, 20% – let alone 50% – is a sizable return.

Whether the film is successful or not you can receive royalty / dividend profits for up to 25 years and possibly beyond.

All media are included – cinema box office, DVDs, Blu-ray, subscription TV, internet downloads, etc… In some cases merchandising is also included.

All the profits are collected by an appointed and reputable independent third party collections agency and distributed to each investor via the auditor accountants.

Normally each film has its own unique limited company with its own film production bank account.

There are, however, some offerings that include a bank of films or a slate of films, thereby spreading the risk.

We do not share your name or contact information with anyone except the Content Creator you choose to connect with.

Connections with Content Creators are made completely on your terms so your details are private until you decide to connect with a particular entrepreneur.

Content Creators (Coming Soon)

The term “issuer” is defined as the “person who issues or proposes to issue any security.”

In this case, the “issuer” is the Content Creator that offers equity in their production company in exchange of equity capital.

Yes, if your minimum investment target amount is not reached, the money goes back to the investors.

Yes. In fact, we encourage you to do so. The more investors you have in your network, the more likely that they will have investors in their network, thus increasing your investor audience.

Also, having existing investors behind your project will likely increase its appeal to investors you may find on Mediavestor.

During the application process, you will be asked to provide basic details of the project (title, genre, log-line, synopsis), any media you have related to the project (e.g. key art, filmmaker interviews, or trailer), and LOIs to confirm talent attachments.

Once your offering is live you must communicate with investors through our Mediavestor communication channels.

You will be able to use our integrated communication options to send and receive messages to/from all interested parties. 

We encourage you to recommend your film to contacts on your Facebook, Twitter and LinkedIn accounts by directing them to the Mediavestor website, but only as advised by Mediavestor and in accordance with the parameters specified by securities counsel.

Yes. To be compliance with state and federal securities laws, Mediavestor always recommends the creation of a Private Placement Memorandum, which outlines the terms of the offering, the risks, the business plan, etc.

Mediavestor will coordinate the production of the Private Placement Memorandum with our in-house experienced legal counsel.

Yes. You may advertise the terms of your offering to direct investors to Mediavestor’s platform but any promotion should be factual and include information that the you are conducting an offering through Mediavestor and a link directing the potential investor to Mediavestor’s platform.

Your campaign will be listed on our site as an upcoming campaign even before its launch, so that you can start to build up the hype. 

Yes, some of the Investor and fan perks will include:
Speaking, walk-on and cameo roles.
Meeting the cast and crew. 
Access to weekly online production diaries.
Invites to pre-release special VIP screenings.

You can see updates on offerings you follow in two different ways:

1. You will receive updates on all offerings you follow through the Mediavestor platform by email and by logging into your account. It aggregates all updates from offerings you are following, offerings you have pledged to, as well as comments and discussions related to these offerings.

2. You can go to the pages of specific offerings and see all of their updates on the timeline. 

There are several ways to engage the investor community:

1. Invite your social media contacts to your Profile Page on Mediavestor. They will be able to see your offering information. Make sure you include your page URL in your post.
2. Promote your equity offering on your website, blog, social media and other online channels.
3. Post often updates and information about the offering on your Offering page (Q&A section). When you post something, the people following your company will receive the update over email.
4. Encourage your friends, family, potential customers/users/partners and prospective investors to follow your company on social media (Facebook, Twitter, and LinkedIn).
5. Create educational blog articles post about your products.
6. Link your blog to your business profile.
7. Follow up immediately with any investor who contacts you on your offering page. Make sure all communications are made via Mediavestor – as the law requires.

Other Issuer (Content Creator) Questions

The Curated Process

Projects go through an extensive vetting process to mitigate typical risks associated with creative financing.

Our focus is on projects that have a commercial appeal, an identifiable audience and a sound financial structure with moderately low and controllable costs.

The Non-Curated Process: Coming Soon

After establishing an “issuer account” with the portal, the issuer must supply all the necessary documents to support their equity offering.

First, the issuer will be required to provide information to Mediavestor for due diligence. Mediavestor will review the background information on the issuer to determine if the issuer meets the requirements to be listed on the portal. 

Once the issuer has been selected to post their listing the issuer will need to have their investment opportunity and relevant information ready to be posted on the platform.

When the equity offering is ready for launch, the issuer will need to specify the minimum and maximum capital requirements for their raise.

For curated projects, Mediavestor’s Executive Producer Services fee is 5% – 7% of the successful project’s budget plus 5-10% of the back-end after the initial Investor’s recoupment . 

Mediavestor receives no compensation for its Executive Producer Services unless the project goes into production.

Your company must be for-profit with a Tax ID number (EIN). You must be over 18, a U.S. resident with a Social Security number, a U.S. address, bank account and ID, and NOT a bad actor or criminal.

Anytime a production gets a green light, we will aggressively pursue sponsorship and product placement opportunities with appropriate partners.

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