ABOUT THIS BOOK

John W. Cones has updated his now classic 43 Ways toFinance Your Feature Film: A Comprehensive Analysis of Film Finance with a substantially reorganized and expanded third edition.

An essential reference guide for film professionals on every side of film financing, 43 Ways answers the question that every filmmaker and producer ultimately faces, the issue that can make or break any venture into the film industry: How do I finance my feature film? The third edition includes updated information and coverage of new options for financing.

In his clear and concise style and with expertise amassed over his nearly twenty years of experience in the film finance industry, Cones breaks financing options down into six main areas: gifts and grants, investor financing, domestic government subsidies and tax incentive programs, lender financing, international finance options, and studio or industry financing. Beginning with the forms of financing most likely to be accessible to independent feature film producers, Cones proceeds to other forms that become increasingly available as the producer’s career matures.

As an objective adviser, Cones provides specific, concise information regarding the many possible financing strategies and lists the distinct pros and cons of each strategy. This guide covers the options for film financing in rich detail so that even first-time producers and filmmakers will be able to make educated and informed decisions about the best approaches to financing their films. An extensive bibliography contains additional information about each form of film finance. Cones also counters much of the bad advice being provided by pseudoprofessional film finance consultants and points out scams that may separate unwary film producers from their money.

Although the book focuses on financing feature films, much of its information is relevant to the financing of other kinds of projects, such as short films, documentaries, videos, and multimedia and theatrical endeavors. Anyone considering making or investing in a feature film will be well served by this practical and helpful guide.

AUTHOR BIOGRAPHY

John W. Cones, a securities and entertainment attorney based in California, is the author of The Feature Film Distribution Deal (available from Southern Illinois University Press). He has extensive experience in the financing of feature films, television pilots, documentaries, infomercials, live stage plays, and Internet companies.

REVIEWS

“[Cones provides] valuable pointers and insights to the burgeoning producer.”

—Boxoffice

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“Cones’s 43 Ways to Finance Your Feature Film includes something for everyone. The book is well suited for independent filmmakers who wish to learn how film financing occurs throughout the industry and how to converse with their attorneys about legal arrangements when they discover potential investors for their film projects.”—Entertainment and Sports Lawyer

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TABLE OF CONTENTS

Contents
Preface 000
Introduction: No Single Best Way 000
Part One. Subsidies 000
 1. Gifts and Grants 000
 2. U.S. Government Subsidies and Tax Incentives 000
 Sources and Further Reading 000
Part Two. Investor Financing 000
 Active Investor Vehicles 000
 3. The Investor-Financing Agreement 000
 4. General Partnerships and Joint Ventures 000
 5. The Initial Incorporation 000
 6. The Member-Managed LLC 000
 Passive Investor Vehicles 000
 7. The Manager-Managed LLC 000
 8. Limited Partnerships 000
 9. Corporate Finance 000
 10. Statutory Exemptions of the 1933 Securities Act, Section 4 000
 11. Intrastate Offering Exemption 000
 12. Regulation D 000
 13. Public-Private Hybrid Exemptions 000
 14. Small Corporate Offering Registration 000
 15. Regulation A 000
 16. Regulation S-B 000
 17. S-1 Public Offerings 000
 18. Over-the-Counter, NASDAQ, and Stock Exchanges 000
 Appendix A: Finding Investors 000
 Appendix B: Limited-Use Business Plans 000
 Appendix C: Financial Projections 000
 Appendix D: Securities Marketing Considerations 000
 Sources and Further Reading 000
Part Three. Lender Financing 000
 19. Lender Financing without Distributor Contracts 000
 20. Negative and Artificial Pickups 000
 21. Presale Financing 000
 22. Gap and Supergap Financing 000
 23. Insurance-Backed Schemes 000
 24. Securitization 000
 Sources and Further Reading 000
Part Four. Studio ora Industry Financing 000
 25. Studio Development and In-House Production 000
 26. Studio Production-Financing/Distribution Agreements 000
 27. Studio-Based Production Companies 000
 28. Independent Distributors 000
 29. Domestic Studio Facilities 000
 30. Film Laboratories 000
 31. Talent Agencies 000
 32. Actor Financing 000
 33. Product Placements 000
 34. End Users 000
 35. Completion Funds 000
 Sources and Further Reading 000
Part Five. International Options 000
 36. Foreign Equity 000
 37. International Coproductions 000
 38. Foreign Tax Shelters and Tax Incentives 000
 39. Blocked Currency or Blocked Funds 000
 40. Foreign Currency 000
 41. Foreign Below-the-Line or Facilities Deals 000
 42. Foreign Government Subsidies 000
 43. Foreign Debt Capitalization Programs 000
 Sources and Further Reading 000
Conclusion: The Broader Film Finance Environment 000
 Sources and Further Reading 000
Index 000