TYPES OF FINANCIAL FUNDING

 What financial options are there for you?

• Every project needs finance and this comes through steams of revenue. These come with risk, unpredictability and return.
• things that affect the type of finance that can be used/attracted: size of organisation, commercial/Government

• Your project needs money. What are the options to acquire money for your project?
• Explore two realistic ways to support the project financially

Some possible types of funding are listed below   

• bank loan - will pay back if film is successful 
• selling of shares in the film (equity finance)
• donations
• private investments - requires payment back (comes with interest)
• partnerships - means to investment (company investment)
• sponsorship - helpful because there is no need to pay back anything - less risky - CONSISTENT REVENUE STREAM FOR A PERIOD OF TIME

Possible revenue streams

• Advertising- a steady and consistent revenue stream ( e.g. on ITV during the commercial break) the money goes back to ITV who can plan their programme for a period of time
• Crowdfunding- online platform asking people to donate

Type of revenue stream	Advantages	Disadvantages
Advertising	·      Offers a reliable revenue stream ·      Steady and consistent	·      Increased costs for the business ·      Compels people to buy things they don’t need ·      Can create negative brand awareness
Sponsorship	·      No need to return any investment  ·      Build business relationships ·      Expand its content strategy	·      Potential controversies – the action of any person/brand/event your sponsor will immediately be linked to you ·      No guaranteed returns- with all marketing strategies there is no guaranteed return
Crowd funding	·      Fast way to raise funds with no fees ·      Helps to avoid giving up equity in your company ·      Community building and feedback collection	·      Community is full of unreliable people ·      Chance of someone imitation your product ·      Only has a 39% success rate

Crowdfunding

crowdfunding- a way of funding a project or venture from a large amount of people who contribute a small amount usually via the internet

what are the benefits to a company who ask for crowdfunding?

- they can see who is interested in their project

- if as a media company you realise that no one is interested in 

your project, then you can review your plans to produce it and improve

- fans want to be part of the project as crowdfunding attract real fans of specific film who actually are interested in investing

- crowdfunding allows individuals to give as much or as little

what ate the benefits for those who contribute?

- people who contribute are happy to be apart of a wider project

- on some occasions they Will get credits at the end on the film

- they feel they are collaborating with film directors or other creatives- online community

Project	Platform
Film king fury 80’s inspired film	Kickstarter
Star citizen video game	kickstarter
Crypto currency E0S	Ethereum(crypto currency site)
TV programme the chosen	Angel studios
Veronica Mars tv series	kickstarter

An example of a crowdfunded feature film called Enemy of Man is a case study of the success of this revenue stream (kickstarter) 

what are the incentives to people to offer money to Enemy of Man via kickstarter?

- people passionate to see a Shakespeare drama turn into a film ( the appeal )

- free downloads

- signed copies of the screenplay

- drawings/convcept arts of the costumes