1 00:00:00,800 --> 00:00:03,680 Speaker 1: Welcome to Fear and Greed Sunday feature. Oh Michael Thompson. 2 00:00:03,880 --> 00:00:06,760 Speaker 1: Most Sundays we talked to Stefan from alts dot Co. 3 00:00:07,040 --> 00:00:09,240 Speaker 1: Today we're taking a look back at a conversation Sean 4 00:00:09,280 --> 00:00:12,440 Speaker 1: Aylmer had with Stefan last year about an area of 5 00:00:12,480 --> 00:00:14,880 Speaker 1: investing that you really don't hear that much about, but 6 00:00:15,040 --> 00:00:18,200 Speaker 1: it is fascinating. We're talking about film financing. It is 7 00:00:18,239 --> 00:00:20,040 Speaker 1: a great chat. I hope you enjoy it. 8 00:00:27,280 --> 00:00:30,080 Speaker 2: Welcome to the Fear and Greed Business Interview. I'm Sean Alam. 9 00:00:30,200 --> 00:00:33,560 Speaker 2: One of our regular guests here is Stefan von Imoff, 10 00:00:33,600 --> 00:00:38,080 Speaker 2: the co founder of alternative investing community fund faults dot com. 11 00:00:38,440 --> 00:00:40,320 Speaker 2: Over the last couple of years, he's talked to us 12 00:00:40,320 --> 00:00:43,400 Speaker 2: about investing in all kinds of unusual assets, sporting teams, 13 00:00:43,440 --> 00:00:47,520 Speaker 2: final records, art, tequila, domain names, watches. We even talked 14 00:00:47,560 --> 00:00:50,640 Speaker 2: about investing in water today. Another one that you don't 15 00:00:50,680 --> 00:00:55,120 Speaker 2: hear about every day, investing in film financing. Obviously, this 16 00:00:55,160 --> 00:00:58,240 Speaker 2: is general information any you should always seek professional advice 17 00:00:58,280 --> 00:01:01,640 Speaker 2: before making any investment decisions. Evan, welcome back to Fearing Greed. 18 00:01:02,080 --> 00:01:02,840 Speaker 3: Great to be here. 19 00:01:02,920 --> 00:01:06,080 Speaker 2: As always, Let's start at the very beginning for the 20 00:01:06,160 --> 00:01:08,800 Speaker 2: dummies like me on this one. Take me through how 21 00:01:08,840 --> 00:01:11,319 Speaker 2: the film industry works. There are two ends of the 22 00:01:11,319 --> 00:01:13,839 Speaker 2: industries that right, the big budget guys in the indie films. 23 00:01:14,160 --> 00:01:16,720 Speaker 3: That's it, and they're totally separate worlds. You got the 24 00:01:16,720 --> 00:01:20,160 Speaker 3: big budget guys the big studios, and then you've got 25 00:01:20,160 --> 00:01:23,240 Speaker 3: the the indie films. And you know, when it comes 26 00:01:23,319 --> 00:01:26,880 Speaker 3: to the big studios, it's no surprise that they're all 27 00:01:26,920 --> 00:01:30,800 Speaker 3: making really safe bets right now. Right, this has led 28 00:01:30,840 --> 00:01:35,280 Speaker 3: to a slew of boring, predictable movies that do pretty 29 00:01:35,319 --> 00:01:40,640 Speaker 3: well financially, especially internationally. I'm talking about the superhero movies, right, 30 00:01:41,120 --> 00:01:43,639 Speaker 3: you know, the Avengers and a lot of the comic 31 00:01:43,680 --> 00:01:46,959 Speaker 3: book characters and all those movies. Those do really really well, 32 00:01:47,000 --> 00:01:49,680 Speaker 3: but they're not that exciting and they're not really moves 33 00:01:49,760 --> 00:01:53,720 Speaker 3: the film industry forward. For that, you got to go 34 00:01:53,840 --> 00:01:58,400 Speaker 3: into indie filmmaking. So indie filmmaking is a lot more exciting. 35 00:01:58,440 --> 00:02:01,720 Speaker 3: This is where really esoteric filmils are made. And some 36 00:02:01,760 --> 00:02:03,960 Speaker 3: of these film studios you might even recognize some of them, 37 00:02:04,000 --> 00:02:07,120 Speaker 3: are getting really pretty big. A twenty four is still 38 00:02:07,160 --> 00:02:10,600 Speaker 3: technically an indie film studio, but they're I mean they're 39 00:02:10,600 --> 00:02:12,840 Speaker 3: about as mainstream as you can get at this point. 40 00:02:12,880 --> 00:02:16,600 Speaker 3: They've you know, created all sorts of great movies, hereditary, 41 00:02:16,760 --> 00:02:20,640 Speaker 3: everything everywhere, all at once, which one best picture. But 42 00:02:20,680 --> 00:02:23,040 Speaker 3: then you have a whole slew of other you know, 43 00:02:23,080 --> 00:02:27,360 Speaker 3: indie filmmakers, and they all need financing, and these films 44 00:02:27,480 --> 00:02:31,519 Speaker 3: basically when it's out of the big studios, it goes 45 00:02:31,560 --> 00:02:34,440 Speaker 3: into a whole other world of financing, which is what 46 00:02:34,440 --> 00:02:37,280 Speaker 3: we call indie film financing. And that's that's a great 47 00:02:37,360 --> 00:02:38,200 Speaker 3: interesting world. 48 00:02:38,480 --> 00:02:41,360 Speaker 2: Hi kind. So that's what we're talking about, indie film financing. 49 00:02:41,400 --> 00:02:42,080 Speaker 2: How does it work? 50 00:02:43,000 --> 00:02:46,760 Speaker 3: Well? Indie film financing is pretty risky, I have to say, 51 00:02:46,880 --> 00:02:49,360 Speaker 3: And there's a couple of different ways you can you 52 00:02:49,360 --> 00:02:51,520 Speaker 3: can do it. I mean you can basically, straight up, 53 00:02:51,639 --> 00:02:54,679 Speaker 3: you know, just finance and own the distribution rights and 54 00:02:54,720 --> 00:02:57,800 Speaker 3: the IP for a film. That's the most common way. 55 00:02:58,400 --> 00:03:00,640 Speaker 3: I mean, this is how a lot of movie get made, 56 00:03:00,760 --> 00:03:03,079 Speaker 3: especially when they're low budget movies. You know, you look 57 00:03:03,080 --> 00:03:05,920 Speaker 3: at movies you know, over the years that have just 58 00:03:05,960 --> 00:03:08,840 Speaker 3: been basically self funded for you know, five, ten, fifteen 59 00:03:08,880 --> 00:03:10,680 Speaker 3: thousand dollars. Some of them have gone on to do 60 00:03:11,200 --> 00:03:14,160 Speaker 3: really really well. Is a famous one, El Mariaschi was 61 00:03:14,160 --> 00:03:16,440 Speaker 3: the first movie by Robert Rodriguez, who went on to 62 00:03:16,440 --> 00:03:19,640 Speaker 3: have an awesome career. There's been all sorts of indie 63 00:03:19,639 --> 00:03:22,200 Speaker 3: films that have that have definitely done well. The problem 64 00:03:22,280 --> 00:03:25,800 Speaker 3: is they're very risky, right, There's a whole bunch of 65 00:03:25,800 --> 00:03:28,400 Speaker 3: stuff that can go wrong. The first thing can go 66 00:03:28,400 --> 00:03:31,000 Speaker 3: wrong is the film doesn't get completed. I don't have 67 00:03:31,040 --> 00:03:32,560 Speaker 3: the exact stat in front of me, but a shocking 68 00:03:32,639 --> 00:03:35,440 Speaker 3: number of films start and then never finish, and it's 69 00:03:35,480 --> 00:03:38,760 Speaker 3: because the funding runs dry, the financing runs out, and 70 00:03:38,800 --> 00:03:40,680 Speaker 3: you can't keep the party going, and the whole thing 71 00:03:40,800 --> 00:03:45,000 Speaker 3: just dies and everyone kind of loses money. Not a 72 00:03:45,080 --> 00:03:48,760 Speaker 3: great situation. So to counteract that, what a lot of 73 00:03:48,760 --> 00:03:53,200 Speaker 3: film indie filmmakers have done is venture into crowdfunding, and 74 00:03:53,800 --> 00:03:56,840 Speaker 3: this is using platforms that are either purpose built platforms 75 00:03:56,840 --> 00:04:00,840 Speaker 3: for movie financing or stuff like Kickstarter. A great example 76 00:04:00,920 --> 00:04:04,080 Speaker 3: of this model was Veronica Mars, which is the biggest 77 00:04:04,080 --> 00:04:07,240 Speaker 3: crowdfunding story to date. This is a TV show and 78 00:04:07,360 --> 00:04:10,080 Speaker 3: it had a cult following, but it got canceled and 79 00:04:10,120 --> 00:04:12,320 Speaker 3: so there were a bunch of angry fans and unresolved 80 00:04:12,320 --> 00:04:14,760 Speaker 3: plot lines and stuff like that. So they went to 81 00:04:14,840 --> 00:04:18,080 Speaker 3: Kickstarter and they raised like five point seven million dollars 82 00:04:18,120 --> 00:04:21,719 Speaker 3: from almost one hundred thousand investors in just like like 83 00:04:21,800 --> 00:04:25,320 Speaker 3: something like twelve hours or something like that, like absurd. Yeah, 84 00:04:25,360 --> 00:04:28,400 Speaker 3: and they ended up, you know, basically making a cultural 85 00:04:28,480 --> 00:04:32,200 Speaker 3: hit film and it didn't actually even that one didn't 86 00:04:32,240 --> 00:04:34,359 Speaker 3: make a lot of money, but the fans that funded 87 00:04:34,400 --> 00:04:36,800 Speaker 3: it at least got to see the film. And that's 88 00:04:36,880 --> 00:04:40,359 Speaker 3: part of what you're investing in with this crowdfunding world. 89 00:04:40,160 --> 00:04:43,080 Speaker 3: But yeah, I mean, bottom line is it's a tricky 90 00:04:43,120 --> 00:04:46,279 Speaker 3: world to make money in and it's not for the 91 00:04:46,320 --> 00:04:47,320 Speaker 3: faint of hearts. 92 00:04:47,800 --> 00:04:51,040 Speaker 2: Okay, So had do you make money in it? Are 93 00:04:51,040 --> 00:04:54,040 Speaker 2: you looking for certain genres? Are you looking for certain 94 00:04:54,640 --> 00:04:56,680 Speaker 2: attributes of an indie film? 95 00:04:57,000 --> 00:05:00,520 Speaker 3: Yeah, well there's no you know, sure thing in world. 96 00:05:00,520 --> 00:05:03,360 Speaker 3: But if you are going to look at what's more 97 00:05:03,480 --> 00:05:06,280 Speaker 3: likely to do well, it tends to be there are 98 00:05:06,320 --> 00:05:09,240 Speaker 3: specific genres that do very well, and one of them 99 00:05:09,520 --> 00:05:13,120 Speaker 3: is horror movies. So horror films are scary, lucrative, like 100 00:05:13,200 --> 00:05:16,240 Speaker 3: no joke, they're the most profitable movies out there. They 101 00:05:16,320 --> 00:05:19,440 Speaker 3: usually don't take that much to make, they don't require 102 00:05:19,520 --> 00:05:25,880 Speaker 3: huge stars, they don't require complicated logistics, they're inexpensive to produce, 103 00:05:26,400 --> 00:05:29,480 Speaker 3: and they can earn quite a bit. I mean paranormal activity. 104 00:05:29,520 --> 00:05:32,960 Speaker 3: The Blair Witch Project, which was the original kind of 105 00:05:33,080 --> 00:05:36,760 Speaker 3: you know, like archetype of like a horror film success. 106 00:05:37,080 --> 00:05:39,400 Speaker 3: I think it costs like half a million dollars, made 107 00:05:39,480 --> 00:05:44,320 Speaker 3: two hundred million dollars worldwide. What else The Gallows has 108 00:05:44,360 --> 00:05:47,000 Speaker 3: done well. That cleared forty million dollars on one hundred 109 00:05:47,040 --> 00:05:50,239 Speaker 3: thousand dollars budget. So there are a lot of horror 110 00:05:50,320 --> 00:05:53,640 Speaker 3: movies that have done well on shoe string budgets. And 111 00:05:53,720 --> 00:05:56,159 Speaker 3: so there's that's some that is one genre that is 112 00:05:56,200 --> 00:05:59,599 Speaker 3: one way. I wouldn't say it's a guarantee, but your 113 00:05:59,640 --> 00:06:02,000 Speaker 3: odds are a lot better making money in that area. 114 00:06:02,400 --> 00:06:08,040 Speaker 2: Stay with me, Stiffan, we'll be back in a minute. 115 00:06:11,240 --> 00:06:14,800 Speaker 2: I'm speaking to Steffan von Imoff, co founder of alternative 116 00:06:14,839 --> 00:06:19,479 Speaker 2: investing community fund alts dot co. And you're making money 117 00:06:19,520 --> 00:06:22,120 Speaker 2: from ticket sales at the cinema or is it a 118 00:06:22,240 --> 00:06:24,240 Speaker 2: streaming service? How does that all play into it? 119 00:06:24,520 --> 00:06:28,000 Speaker 3: Well, it gets complicated. This is a very rapidly changing world. 120 00:06:28,040 --> 00:06:30,719 Speaker 3: I mean, basically, the biggest thing that's happened lately is 121 00:06:30,760 --> 00:06:33,919 Speaker 3: that the big streaming platforms are basically buying up movie 122 00:06:34,000 --> 00:06:35,880 Speaker 3: rights now. So it used to be you would own 123 00:06:35,920 --> 00:06:39,280 Speaker 3: the movie rights as an indie film producer, and you 124 00:06:39,320 --> 00:06:42,240 Speaker 3: would own them forever, right, and you would basically, you know, 125 00:06:42,400 --> 00:06:45,040 Speaker 3: you'd take some risk with that, but you would have 126 00:06:45,160 --> 00:06:48,440 Speaker 3: the royalties forever from that film. That doesn't really happen 127 00:06:48,480 --> 00:06:51,640 Speaker 3: when like Netflix, Amazon come knocking to buy your movie. 128 00:06:52,000 --> 00:06:55,720 Speaker 3: They basically just buy the whole thing like outright, And 129 00:06:56,120 --> 00:06:58,719 Speaker 3: that's great for you and the short term, but in 130 00:06:58,760 --> 00:07:01,160 Speaker 3: the long term it can hurt movie producers because they 131 00:07:01,160 --> 00:07:04,279 Speaker 3: don't get the recurring royalties from that, you know, Amazon 132 00:07:04,320 --> 00:07:06,840 Speaker 3: and Netflix does, so it's six to one, half a 133 00:07:06,880 --> 00:07:08,719 Speaker 3: dozen of the other. I mean, more stuff is getting 134 00:07:08,720 --> 00:07:11,080 Speaker 3: funded now than ever before thanks to the rapid growth 135 00:07:11,120 --> 00:07:14,120 Speaker 3: and streaming, but most of it's kind of one off stuff. 136 00:07:14,120 --> 00:07:16,200 Speaker 3: It doesn't get renewed. It doesn't really make a whole lot. 137 00:07:16,320 --> 00:07:18,880 Speaker 3: So the filmmaker got their advance and they got their 138 00:07:18,920 --> 00:07:23,160 Speaker 3: their payment, which is good, but it's not really just 139 00:07:23,160 --> 00:07:25,360 Speaker 3: because you're you have a movie on Amazon coming out 140 00:07:25,440 --> 00:07:28,240 Speaker 3: or a movie on Netflix. It is not exactly like 141 00:07:28,280 --> 00:07:30,600 Speaker 3: you can sit back and retire. It doesn't quite work 142 00:07:30,640 --> 00:07:30,920 Speaker 3: like that. 143 00:07:32,040 --> 00:07:35,160 Speaker 2: So I'm just saying, So, when when you're going steffant 144 00:07:35,400 --> 00:07:38,160 Speaker 2: to look at an indie film project and let's sart, 145 00:07:38,160 --> 00:07:41,960 Speaker 2: we're thinking, let's go for the horror genre. What what's 146 00:07:42,000 --> 00:07:44,640 Speaker 2: my next step? Where am I going to invest? 147 00:07:45,200 --> 00:07:50,240 Speaker 3: Well, I don't. We don't invest in specific film production. 148 00:07:50,560 --> 00:07:52,920 Speaker 3: What we do is something a little bit different, and 149 00:07:53,200 --> 00:07:55,560 Speaker 3: it's we found a niche within this industry that is, 150 00:07:55,680 --> 00:07:59,440 Speaker 3: it's almost alternative within the realm of alternative investing. And 151 00:07:59,480 --> 00:08:03,200 Speaker 3: so what we've landed on is something called film bridge 152 00:08:03,200 --> 00:08:07,440 Speaker 3: loan financing. And the way this works is really really fascinating. 153 00:08:07,560 --> 00:08:10,840 Speaker 3: So the film industry, and now I'm talking about even 154 00:08:10,880 --> 00:08:16,280 Speaker 3: big budget films, right, they often face timing mismatches between 155 00:08:16,320 --> 00:08:20,520 Speaker 3: when funds are needed and when the long term financing 156 00:08:20,560 --> 00:08:25,640 Speaker 3: becomes available. So basically, the film start shooting and they 157 00:08:25,680 --> 00:08:29,520 Speaker 3: need to start shooting in order to show everyone all 158 00:08:29,560 --> 00:08:32,880 Speaker 3: the big investors that the film has kicked off, but 159 00:08:33,000 --> 00:08:36,560 Speaker 3: they still have short term financing needs that need to 160 00:08:36,600 --> 00:08:41,679 Speaker 3: be met, and there's basically this persistent demand for what 161 00:08:41,720 --> 00:08:44,680 Speaker 3: are essentially short term bridge loans. These are about eight 162 00:08:44,720 --> 00:08:49,520 Speaker 3: to fourteen weeks where these companies basically need bridge financing. 163 00:08:50,400 --> 00:08:56,280 Speaker 3: So we don't actually fund individual deals. The reason is 164 00:08:56,320 --> 00:08:59,000 Speaker 3: because each deal needs to move so so quick. Each 165 00:08:59,000 --> 00:09:01,800 Speaker 3: deal is a little fit and it requires investors to 166 00:09:01,880 --> 00:09:05,800 Speaker 3: move very very quickly. So one of our community members 167 00:09:05,840 --> 00:09:09,440 Speaker 3: has kind of solved this problem, a gentleman named Chris. 168 00:09:09,440 --> 00:09:13,520 Speaker 3: He's solved this problem by putting together a five year 169 00:09:13,600 --> 00:09:19,520 Speaker 3: investment vehicle that it's basically a bridge loan fund, right, 170 00:09:19,640 --> 00:09:22,800 Speaker 3: and it reinvests the capital across dozens of projects so 171 00:09:22,800 --> 00:09:25,000 Speaker 3: that when these studios are ready to go and they 172 00:09:25,080 --> 00:09:28,880 Speaker 3: need that film financing, that that bridge loan financing, this 173 00:09:28,960 --> 00:09:31,720 Speaker 3: fund is ready to kick into high gear and deploy 174 00:09:31,760 --> 00:09:33,600 Speaker 3: the capitol and get it back in about eight to 175 00:09:33,679 --> 00:09:37,120 Speaker 3: fourteen weeks. So we have recently offered this to our 176 00:09:37,160 --> 00:09:39,880 Speaker 3: community and we are about to close on our first 177 00:09:40,080 --> 00:09:42,120 Speaker 3: investment into this bridge loan fund. 178 00:09:42,960 --> 00:09:44,960 Speaker 2: And this is more the big budget end rather than 179 00:09:44,960 --> 00:09:46,480 Speaker 2: in the end it is. 180 00:09:46,480 --> 00:09:49,120 Speaker 3: This is so I mean a recent example. Unfortunately in 181 00:09:49,160 --> 00:09:52,000 Speaker 3: this world it's very you're not allowed to talk about 182 00:09:52,080 --> 00:09:55,679 Speaker 3: upcoming films, especially we haven't been announced yet and stuff, 183 00:09:55,679 --> 00:09:57,160 Speaker 3: but we can talk about what happened in the past. 184 00:09:57,200 --> 00:09:59,040 Speaker 3: And so a great example of a film that the 185 00:09:59,120 --> 00:10:03,239 Speaker 3: famously needed bridge loan funding, and this fund actually financed 186 00:10:03,360 --> 00:10:06,400 Speaker 3: is the movie about Enzo Ferrari, just the called Ferrari 187 00:10:06,440 --> 00:10:09,600 Speaker 3: with Adam Driver came out last year. They needed bridging 188 00:10:09,600 --> 00:10:12,560 Speaker 3: money to keep going before they can get the real financing, 189 00:10:13,320 --> 00:10:16,120 Speaker 3: and this is exactly what this fund was built for, 190 00:10:16,200 --> 00:10:19,840 Speaker 3: so they helped all in. About thirty percent of the 191 00:10:19,960 --> 00:10:23,640 Speaker 3: total film financing came from financiers like this, and seventy 192 00:10:23,679 --> 00:10:26,600 Speaker 3: percent came from the big studios, so it's a significant 193 00:10:26,640 --> 00:10:28,000 Speaker 3: portion of the industry. 194 00:10:28,600 --> 00:10:30,480 Speaker 2: And presumably the returns are pretty good to me because 195 00:10:30,480 --> 00:10:32,840 Speaker 2: it's hard race case. You've said, although what you're talking 196 00:10:32,880 --> 00:10:36,520 Speaker 2: about mitigates that risks some up because we were spreading 197 00:10:36,559 --> 00:10:40,960 Speaker 2: it across projects, but the returns presumably a pretty good. 198 00:10:41,320 --> 00:10:43,240 Speaker 3: They are Let's talk about the risks before we talk 199 00:10:43,240 --> 00:10:45,480 Speaker 3: about the returns, because we need to be clear on 200 00:10:45,520 --> 00:10:48,480 Speaker 3: the risks here. So, I mean, the traditional risks with 201 00:10:48,520 --> 00:10:51,320 Speaker 3: this world is that the megafunding, the large funding, the 202 00:10:51,320 --> 00:10:55,240 Speaker 3: studio funding never gets secured and everyone can lose a 203 00:10:55,240 --> 00:10:57,400 Speaker 3: lot of money in that case, and it happens. I mean, 204 00:10:57,520 --> 00:10:59,600 Speaker 3: there's all sorts of reasons that can happen. COVID ruined 205 00:10:59,600 --> 00:11:02,240 Speaker 3: a lot of movies there's all sorts of reasons that 206 00:11:02,240 --> 00:11:05,120 Speaker 3: that films don't complete, and there's really not a lot 207 00:11:05,160 --> 00:11:08,640 Speaker 3: of recourse most of the time. There's also just single 208 00:11:08,640 --> 00:11:11,040 Speaker 3: film risk, like you mentioned, right, which is the idea 209 00:11:11,080 --> 00:11:13,400 Speaker 3: of like, look, you could make a lot of money 210 00:11:13,400 --> 00:11:17,160 Speaker 3: on a single film, you could also the movie could flop, right, 211 00:11:17,440 --> 00:11:21,600 Speaker 3: and there's no great way of knowing. I mean, you know, 212 00:11:21,679 --> 00:11:24,920 Speaker 3: again the actuarial math you can do to kind of 213 00:11:24,960 --> 00:11:26,560 Speaker 3: figure out what's a good bet, what's a bad bet. 214 00:11:26,600 --> 00:11:29,720 Speaker 3: But just like in venture capital, some companies fail completely, 215 00:11:29,760 --> 00:11:31,680 Speaker 3: most companies fail, and some go to the moon. So 216 00:11:31,720 --> 00:11:34,880 Speaker 3: it's tricky. So what this fund is done is interesting. 217 00:11:35,120 --> 00:11:38,480 Speaker 3: So the fund only gives bridge loans to films that 218 00:11:38,600 --> 00:11:42,000 Speaker 3: already have primary funding, right, so that's already been lined up, 219 00:11:42,040 --> 00:11:44,480 Speaker 3: So there's a major backer behind every single one of these. 220 00:11:44,480 --> 00:11:46,760 Speaker 3: So these are not like mom and pop flicks that 221 00:11:46,880 --> 00:11:49,640 Speaker 3: like could totally you know fail because they have no 222 00:11:49,840 --> 00:11:53,400 Speaker 3: major funding. But even within that major funding, it's still risky. 223 00:11:53,880 --> 00:11:57,280 Speaker 3: So this fund requires that each film gets ensured. Basically, 224 00:11:57,280 --> 00:12:01,160 Speaker 3: each project has to obtain a bond, an insurance bond 225 00:12:01,920 --> 00:12:05,440 Speaker 3: that either ensures the film's completion or immediate loan repayment 226 00:12:05,480 --> 00:12:08,319 Speaker 3: in the in the event that the film cannot be completed, 227 00:12:08,760 --> 00:12:11,560 Speaker 3: and of course this capital Lespinalist gets deployed across a 228 00:12:11,679 --> 00:12:14,280 Speaker 3: basket of films, you know, maybe a dozen over the 229 00:12:14,280 --> 00:12:17,760 Speaker 3: next five years. It's kind of the idea. So between 230 00:12:17,800 --> 00:12:20,760 Speaker 3: those three kind of mitigation strategies, it's just a perfect 231 00:12:20,840 --> 00:12:23,640 Speaker 3: kind of situation. And you know, it's funny you see 232 00:12:23,640 --> 00:12:26,200 Speaker 3: this sort of specialized financing and other industries, like going 233 00:12:26,240 --> 00:12:28,920 Speaker 3: back to VC for a second, you see it in 234 00:12:29,000 --> 00:12:32,600 Speaker 3: venture with like ventured debt within the startup ecosystem, and 235 00:12:32,679 --> 00:12:35,920 Speaker 3: so like this bridge financing fills a specific capital need 236 00:12:35,960 --> 00:12:39,920 Speaker 3: that banks are unwilling to address. Traditional lenders shy away 237 00:12:39,960 --> 00:12:42,640 Speaker 3: because it's confusing, they don't really get it. There's a 238 00:12:42,679 --> 00:12:45,720 Speaker 3: lot of perceived risks. But it's perfect for us in 239 00:12:45,760 --> 00:12:50,120 Speaker 3: our community, basically any specialty lender like us, because you know, 240 00:12:50,160 --> 00:12:54,160 Speaker 3: if you have that specific expertise within your lending community 241 00:12:54,679 --> 00:12:57,480 Speaker 3: and if you have backgrounds in film finance and production, 242 00:12:57,760 --> 00:12:59,760 Speaker 3: I mean, yeah, you can make a lot of money. 243 00:12:59,760 --> 00:13:04,360 Speaker 3: So this fund targets sixteen percent returns per film. That's 244 00:13:04,400 --> 00:13:08,320 Speaker 3: sixteen percent returns over eight to fourteen weeks. So I 245 00:13:08,360 --> 00:13:11,880 Speaker 3: mean that's from an IRR standpoint, that's very very good. 246 00:13:12,240 --> 00:13:14,360 Speaker 3: It is again and there's no guarantees in this world, 247 00:13:14,520 --> 00:13:17,240 Speaker 3: but we the resks have been mitigated very well. 248 00:13:17,760 --> 00:13:19,680 Speaker 2: Stephan. As always, you have taught me about something I 249 00:13:19,720 --> 00:13:22,480 Speaker 2: knew nothing about whatsoever. I feel a better person as 250 00:13:22,520 --> 00:13:24,199 Speaker 2: a result. Thank you for coming on to Fear and 251 00:13:24,240 --> 00:13:24,760 Speaker 2: Greed today. 252 00:13:25,160 --> 00:13:26,640 Speaker 3: Thank you guys now. 253 00:13:26,679 --> 00:13:30,880 Speaker 2: Stefan von Imov, co founder of alternative investing community fund 254 00:13:31,120 --> 00:13:34,719 Speaker 2: Als dot Co a L T S dot Co. This 255 00:13:34,840 --> 00:13:37,120 Speaker 2: is the Fear and Greed Business Interview. Remember this is 256 00:13:37,160 --> 00:13:40,440 Speaker 2: general information only. You should seek professional advice before making 257 00:13:40,480 --> 00:13:43,199 Speaker 2: any investment decisions. Join us every morning for the full 258 00:13:43,240 --> 00:13:45,480 Speaker 2: episode of Fear and Greed daily business years for people 259 00:13:45,480 --> 00:13:49,719 Speaker 2: who make their own decisions. I'm Sean Elmer. Enjoy your day.