IndieVest FAQ — Investment Proceeds
To help you make the most of your experience with IndieVest, we've included questions and answers on a variety of relevant topics.
All FAQ:
- Members/Producers
- The Investments
- The Films
- Investment Proceeds
Film FAQ
- What is IndieVest?
- Who can participate?
- How do I become an IndieVest Member?
- How do I become an IndieVest Executive Producer?
- How much can I invest?
- Why do people invest in entertainment projects?
- Can these investments be traded on an exchange or be sold?
- What is the advantage to IndieVest Members and Filmmakers in raising funds this way?
- How will the finished projects be distributed?
- Does IndieVest Pictures have any ownership in the feature film projects?
- How are projects selected for inclusion in IndieVest’s Premiere Portfolio?
- How long are film projects available for investment?
- How long does it take for a film to generate returns?
- Do Executive Producer investors get dividends?
- Do Executive Producers receive tax benefits?
- What is a typical Executive Producer investor return?
- How risky is a film investment?
- Can customers invest in more than one project?
- Can IndieVest Members attend a movie’s premiere?
- Do IndieVest Members receive screen credits?
- Can IndieVest Members read details of the script and review the budgets?
- How can I get started on my way to investing in independent feature films?
- What does it cost to become a Member of IndieVest?
- Can I see a sample of one of your feature film offerings even though I am not an accredited investor?
- How can I get help with my username and password?
1. What is IndieVest?
IndieVest is an independent film studio, financier, distributor and a Member community of high-net-worth investors. We offer exciting Membership levels that provide individuals with opportunities to become an “exclusive insider” in the independent film community, as well as “first look” access to independent film projects currently under development at IndieVest Pictures in which Members have the ability to make feature film investments and become an IndieVest Executive Producer. IndieVest combines a professional film investment company with film investment opportunity to create a unique film investment service. IndieVest Pictures independent film opportunities are generally organized as limited liability companies (LLCs) specifically organized to make and distribute a particular independent feature film. All Members work directly with our Representatives at IndieVest Securities (Member FINRA SIPC) to assist in making the most of their IndieVest Membership.
2. Who can participate?
Due to Federal securities rules and regulations any accredited investor can apply to become an IndieVest Member.
3. How do I become an IndieVest Member?
To apply for Membership approval and begin enjoying all the exclusive IndieVest benefits, you will first need to fill out our online application and specifically attest to being an accredited investor, which upon receiving approval and paying your Membership fee would enable you to become a Member and ultimately an IndieVest Executive Producer. IndieVest combines a professional film investment company with film investment opportunity to create a unique film investment service. In order to qualify for Membership—and have the opportunity to become an IndieVest Executive Producer by investing in independent film private placements offered by IndieVest Pictures and syndicated through IndieVest Securities—you must be an accredited investor under Federal securities rules and regulations and must live in a state where IndieVest is registered to accept Members.
4. How do I become an IndieVest Executive Producer?
IndieVest is an independent film studio, financier, distributor and a Member community of high-net-worth investors. Our Members who desire to become a film investor enjoy “first look” access to the top-tier independent film’s currently being developed by IndieVest Pictures. Members can become an IndieVest independent film Executive Producer by investing in one or more independent film investment opportunities.
5. How much can I invest?
Feature film investments made in IndieVest Pictures private placement offering’s are typically accepted on a first-come, first-served basis and generally have a $50,000 unit minimum, depending on the total cost of the feature film project.
You do not need to fund an account in order to become a film investor or to receive detailed information relating to a specific feature film investment; however, you must become an IndieVest Member to gain ‘first look’ access to view the Premiere Portfolio.
6. Why do people invest in entertainment projects?
The answer depends on the individual. Some people are drawn to the idea of supporting projects by their favorite directors or starring their favorite actors, while others are attracted by the idea of being film business “insiders.” Ultimately, most people that become film investors choose a particular film investment opportunity that they have identified as a feature film project that can potentially generate general audience acceptance in the marketplace—offering potentially significant profits.
7. Can these investments be traded on an exchange or be sold?
IndieVest combines a film investment company with film investment opportunity (private placements) to create a unique film investment service, but; like all private placements, an IndieVest feature film investment opportunity is illiquid and cannot be readily sold. Any potential return is likely to occur from the payment preferences detailed in each film investment opportunities private placement memorandum. Please consult each specific offering’s private placement memorandum to review these details prior to becoming a film investor.
8. What is the advantage to IndieVest Members and Filmmakers in raising funds this way?
Limited liability companies (LLCs) are commonly established in order to produce feature films, Broadway plays and other alternative investments, including REIT and energy investments. It is also common practice to raise money for alternative investment entertainment projects (film investments) from private investors. IndieVest has combined an independent film studio, financier, distributor and a Member community of high-net-worth investors to deliver an approach that differs significantly from other opportunities. We provide a simplified “turnkey” process that enables Members and Filmmakers to realize greater funding efficiency, professional film development and production oversight with a guaranteed domestic theatrical distribution up to 1,500 theaters. IndieVest utilizes a proprietary, secure platform that is accessible over the Internet. Our online platform offers filmmakers a streamlined funding process, while providing Members with a professionally managed investment in a range of exciting, investment-grade feature film opportunities. IndieVest has combined the abilities of a professional film investment company with film investment opportunity to deliver a unique film investment service.
9. How will the finished projects be distributed?
IndieVest Pictures will produce or co-produce each project offered in the Premiere Portfolio. Under the direction of our President of Production, our seasoned distribution and marketing teams will be responsible for all decisions relating to the domestic and foreign distribution of each feature film project we fund which is part of our film investment service. Each feature film project’s distribution strategy will be detailed in the particular film investment opportunity’s private placement memorandum and upon completed funding the domestic theatrical distribution is guaranteed by IndieVest Pictures.
10. Does IndieVest Pictures have any ownership in the feature film projects?
Each of IndieVest Pictures feature film investments are organized as limited liability companies (LLCs) specifically set up to make a particular feature film. IndieVest has combined a professional film investment company with film investment opportunity to create a unique, managed risk, film investment service. Generally, after our Executive Producer Members have been paid back their entire investment and a premium return, Executive Producer Members then generally receive 50% or more of the net profits of the project, with Filmmakers generally receiving 40% of net profits and IndieVest Pictures generally receiving the remaining 10%. IndieVest Pictures also retains ownership of the feature film negative to efficiently exploit all revenue opportunities on behalf of our Executive Producer Members and Filmmakers during the lifetime of the project. Any ownership held by IndieVest Pictures or any other entity will be detailed in each feature film’s private placement memorandum.
11. How are projects selected for inclusion in IndieVest’s Premiere Portfolio?
IndieVest Pictures employs a rigorous development process for each feature film investment opportunity it anticipates producing or co-producing—with the goal of finding compelling, character-driven projects with unique stories. Once we have fine-tuned scripts, reached agreements with writers and directors and fully modeled the below-the-line budgets, we then cast top-tier on-screen talent. Our film distribution, marketing and finance teams also analyze the financial viability of each project—reviewing such factors as the track record of the talent involved and comparable domestic and foreign releases. When all of these disciplines are working in concert, the project’s private placement memorandum is made available to our Members by inclusion in the Premiere Portfolio.
12. How long are film projects available for investment?
Each Premiere Portfolio film investment opportunity is available for review and investment on a first-come, first-served basis, until they are fully financed in accordance with the criteria of each film’s private placement memorandum. Each project is unique and may have different time frames or criteria that would limit or extend its investment availability to our Members who desire to become an IndieVest Executive Producer of a particular project. All capital necessary to complete a project—from pre-production through to distribution—must be placed in segregated escrow accounts prior to pre-production commencing. If necessary financing is not completed within the necessary time period, the project will be removed from the Premiere Portfolio and all capital in escrow will be returned to each investing Member. Check with your dedicated Representative for current details relating to each particular project.
13. How long does it take for a film to generate returns?
Depending on the time it takes to fully complete all aspects of production and depending upon the particular film’s level of success, a film investment opportunity may begin generating a return on investment (ROI) within the twelve months after financing, however; it would not be unusual for two years or more to pass before a project sees a significant return on investment. Many factors come into play, including the length and commencement of the production schedule, the availability of specific talent, the length of post-production and the seasonal feature film distribution patterns. Each private placement memorandum details the anticipated start-to-theatrical release project timeline.
14. Do Executive Producer investors get dividends?
For a IndieVest film investment opportunity, the units offered to our Members who choose to become IndieVest Executive Producers of a particular project have a preferential return on investment, which provides a priority return of capital and an additional preferred percentage return amount to Members who have chosen to become Executive Producers of a particular project by purchasing its investment units. These amounts are paid in full prior to the Executive Producer investment group, Filmmaker group and IndieVest Pictures net return computation. Each feature film’s private placement memorandum provides thorough details on the anticipated investors return on investment potential and the preference structure for an individual investing as an Executive Producer.
15. Do Executive Producers receive tax benefits?
For each film investment opportunity, a discussion of certain tax information, including potentially beneficial tax treatment can be found in the private placement memorandum for each particular feature film project. If you have questions regarding potential tax benefits, we encourage you to review the private placement memorandum thoroughly and consult with your tax advisor.
16. What is a typical Executive Producer investor return?
Even for a professional film investment company, it is difficult to generally predict an investor’s return on investment for a particular film investment opportunity. For every successful feature film project, there are several others that never find a significant audience. Film investments are risky and difficult to predict. Each private placement memorandum thoroughly details the industry comparables for the specific project, including performance level and type of cast, genre, anticipated distribution dates, etc. This data is then broken down into the potential return on investment likely to be derived in domestic and foreign markets in all distribution channels—including theatrical, DVD/video, video-on-demand, pay-per-view cable, network television, etc.
17. How risky is a film investment?
IndieVest combines a professional film investment company with film investment opportunity to create a unique film investment service. We provide an end-to-end managed risk solution to Members who choose to become Executive Producer investors. Our teams of professionals strive to manage the risk in each project in a manner that we believe will reduce market risk while significantly enhancing the potential upside of each project. Nonetheless, IndieVest film investments are speculative in nature, involve a high degree of risk, and are only appropriate for investors who can afford to lose some or all of their entire invested capital. For a complete review of the risks associated with a film investment, Members are urged to examine closely the private placement memorandum of any feature film project of which they are considering becoming an Executive Producer. We encourage these Members to pay particular attention to the detailed section on risk factors and to review the risk factors section of the IndieVest site. Member investors should also utilize the services of their IndieVest Representative to assist in answering their questions.
18. Can customers invest in more than one project?
IndieVest’s dedicated Representatives strongly urge our members who desire to become Executive Producers to not invest in only one film investment opportunity, but instead; utilize portfolio theory to better manage and potentially further reduce investment risk, creating a greater opportunity for upside potential. Members should plan to make their film investments in several different projects of differing types over time. IndieVest Securities Representatives work individually with each of our Members to assist them in developing a portfolio of feature film investments, thereby potentially better managing risk and upside potential to enjoy to the fullest the experience of becoming an Executive Producer. Practicing portfolio theory allows our Members to further enhance their managed risk potential of becoming a participant in a film investment opportunity by utilizing our professional film investment company with our professional film service.
19. Can IndieVest Members attend a movie’s premiere?
Yes. Members are encouraged to take advantage of the many exclusive industry “insider” events available to them as an IndieVest Member. Members who have chosen to become an Executive Producer of a particular film investment opportunity will also enjoy premium VIP seating at their film’s premiere and a cocktail reception after the premiere with members of the cast. As well, Executive Producers will be able to attend the set while their particular film is shooting and enjoy other ‘Executive Producer only’ perks.
20. Do IndieVest Members receive screen credits?
Yes. IndieVest Members who become an Executive Producer on a specific feature film investment opportunity are listed individually in the end credits under IndieVest Executive Producers.
21. Can IndieVest Members read details of the script and review the budgets?
Each IndieVest film investment opportunity has a private placement memorandum which includes a detailed synopsis of the script, in addition to a complete, detailed budget breakdown and detailed analysis of the projected return on investment by each anticipated distribution channel.
22. How can I get started on my way to investing in independent feature films?
Due to Federal securities rules and regulations you first need to Apply to become a Member with IndieVest, after you have been approved to become a Member and have paid the appropriate Membership fee you then have an approximate thirty day cooling off period until you can view the Premiere Portfolio and begin requesting private placement memorandums on any feature film projects. Due to this cooling off period, your Membership renewal date is calculated from the date you have been presented with your first feature film opportunity.
23. What does it cost to become a Member of IndieVest?
Interested individuals whose applications are accepted pay either an All Access Studio Membership with an annual fee of $4,950, which grants immediate access to all the insider benefits, exclusive industry events and 24/7 access to the Premier Portfolio (where Members view feature film projects slated for production), or you may choose to purchase the Premiere Portfolio Membership with an annual fee of $2,950, which grants immediate access to numerous insider benefits and 24/7 access to the Premiere Portfolio. Purchasing either Membership level delivers exclusive access to the Premiere Portfolio, which offers the ability to become an Executive Producer of an independent feature film investment opportunity. Apply to become a Member today!
24. Can I see a sample of one of your feature film offerings even though I am not an accredited investor?
Unfortunately, due to Federal securities rules and regulations, we are not permitted to show film investment opportunity offering to persons who are not accredited investors. Private placement memorandums are highly regulated under Federal law. In addition to generally prohibiting the sale of these offerings to persons who are not accredited investors, Federal law does not permit the promotion of these offerings to the general public.
25. How can I get help with my username and password?
We can send you your password.
Please visit our Member Benefits for more information.
Other questions? Call us at 1-888-299-9961 or email us at MemberServices@indievest.com.
