Forbes - How This Film Financing Company Built A Business On Low Budget Movies
Bondit Media Capital, founded in 2013, offers a unique approach to film financing by focusing on low-budget films that often bypass theaters and go directly to streaming services. This strategy reduces risk and attracts institutional investors by providing predictable returns. Bondit evaluates deals based on factors like tax credits, international pre-sales, and the filmmaker's track record. The company prioritizes debt repayment, ensuring it recoups investments first. Bondit finances over 50 films annually, turning over more than $100 million in capital with less than 1% in bad loans, delivering consistent 15-20% returns. Notable successes include Anna Kendrick's 'Woman of the Hour,' which yielded a 250% return, and 'Terrifier 3,' which nearly doubled its investment. Bondit's model is evolving to explore more upside potential.
Key Points:
- Bondit focuses on low-budget films for streaming, reducing risk and ensuring consistent returns.
- The company evaluates deals based on tax credits, pre-sales, and filmmaker reliability.
- Bondit prioritizes debt repayment, securing its position to recoup investments first.
- It finances over 50 films annually, with a turnover of $100 million and less than 1% bad loans.
- Successful projects like 'Woman of the Hour' and 'Terrifier 3' highlight Bondit's effective strategy.
Details:
1. 🎬 Navigating the Independent Film Financing Maze
- Independent film producers often face financial instability just before shooting starts, risking entire productions.
- Miguel Palos of AGC Studios experienced a funding collapse in October 2022 but resolved it by contacting Matthew Helderman of Bondit Media Capital, highlighting the importance of having reliable financial contacts.
- Bondit Media Capital provided a term sheet within a week, showcasing their efficiency and reliability in crisis situations.
- The financing enabled Anna Kendrick's directorial debut, 'Woman of the Hour', to proceed, demonstrating the critical role of timely financial solutions.
- 'Woman of the Hour' generated significant interest, leading to a bidding war at the 2023 Toronto International Film Festival, underscoring the potential payoff of overcoming financial hurdles.
- The film was sold to Netflix for $1 million following its release in October, exemplifying the successful outcome of strategic financial intervention.
- Such financial collapses are not uncommon in the industry, emphasizing the need for strategic planning and resourcefulness.
2. 💡 Bondit's Strategic Investment Model
- In 2024, Bondit emerged as the leading platform globally, achieving significant indie success.
- The shifting conservative nature of lenders emphasizes Bondit's importance in maintaining flexibility and speed in operations.
- Since 2013, Bondit has stood out by reducing investment risks and drawing institutional investors.
- The company employs a 'low stakes, high volume' strategy, avoiding reliance on large blockbuster films or Oscar contenders.
- Bondit has successfully financed over 500 films, focusing mostly on low-budget genre films that often skip theatrical releases.
3. 🔍 Risk Assessment and Return Strategies
3.1. Risk Assessment
3.2. Return Strategies
4. 📈 Financial Success and Future Innovations
- Bondit turns over more than $100 million in capital annually, with a write-off of less than 1% in bad loans, delivering consistent 15 to 20% returns.
- Last year, Bondit achieved a 250% return on investment for the film 'Woman of the Hour' by pre-selling international rights and securing a sale to Netflix.
- The company nearly doubled its investment in the film 'Terrifier 3' after it grossed $88 million worldwide, showcasing a successful rare theatrical release.