Investment
Ninth Hour Inc seeks investment in pre-production, production and distribution of the comedy feature film New Growth budgeted at 1.7 million USD.
Genre – Comedy
Projected budget – $1,710,960
Bottom Line – Low budget allows for HUGE upside
According to Statista, comedy was by far the most popular TV and movie genre among U.S. adults who responded to a survey held in March 2020, with 21 percent saying that they had watched comedy content the most since it was recommended to stay away from public gatherings due to the coronavirus outbreak.
Ninth Hour LLC
Hypothetical Investment Return
WATERFALL DETAILS
NEW GROWTH
Total Budget = $1,000,000
Profit Returned to LLC = $2.1 million
First payout (120%) = $1,200,000
Remaining money to be split = $900,000
$450,000 to Investor
$450,000 to Production
Total Investment = $1,000,000
Example of Investor Payout =$1,650,000
Return on Investment over 2 Years =65%
- First payout goes to investors until 120% of the investment is recouped.
- After 120% recoupment, the net profit is split 50/50 between the investors and the production company. The 50% production company split consists of percentages given to the director, producers, actors, actresses, writer, etc.
- On the investment side, your individual investment reflects the percentage of the film you own. There can be no further dilution of investor’s percentage. Once your percentage is assigned, it cannot decrease.
According to Statista, comedy was by far the most popular TV and movie genre among U.S. adults who responded to a survey held in March 2020, with 21 percent saying that they had watched comedy content the most since it was recommended to stay away from public gatherings due to the coronavirus outbreak.
Box Office Comparison of Successful Films in the Same Genre and Similar Low Budget
