IndieWonder Fund Structure Explained

A film fund on blockchain

A fund built on blockchain technology, IndieWonder, provides the new opportunities of enhanced security, decentralization, transparency, increased efficiency and speed, reduced costs with its distributed ledger, meaning anyone can see the transactions between investors, producers and the fund. The blockchain protocol allows all its participants in its network of computers share and store the same ledger of transaction records instead of storing and sharing the records in stand-alone servers. Transactions are recorded only with consensus in the network which makes it secure to alterations. The blockchain technology with smart contracts allow IndieWonder Fund to operate very fast and low cost with its protocol requiring nearly no paperwork to invest in fund, to provide financing and collect returns.

Fund structure

IndieWonder targets to invest $50k(*) as gap financing in 100 films for every $5M raised or reinvested. Raising and investing / reinvesting the funds happens immediately, meaning without waiting $5M to be closed.

For $50k in every film invested the fund will get:
• 10%(*) of film’s revenue, including all past, current and future revenues from intellectual property base
• The nonexclusive right to mediate exploitation (licensing / selling) of intellectual property assets of the film’s Video on Demand rights, locally, regionally and globally. The fund will take up 40%(*) of film’s revenue created this way.

The management fee rate for operational expenses is 10%(*) of every raised $5M. It is expectedly higher than a general venture capital fund which only supports a small team. IndieWonder aims for expansion without borders and development.

The carried interest rate of IndieWonder is 10%(*), meaning $0.10 for every $1 returned over $5M invested in corresponding batch added to the vault of IndieWonder to support its operations, expansion and development.

Investment Criteria

In the world of film financing, many prestigious film festivals host marketplaces for independent films where, after a highly competitive selection process, a small list of well-qualified film projects are invited for further development in their story, production and/or financial status. These marketplaces act as bearers of the most circulating independent films for the upcoming years.

IndieWonder invests in independent films of independent filmmakers without vetting. Any filmmaker with a track record of A-list festival accredited film projects in the US, Europe and other geographies is eligible to get funding from IndieWonder.

To be eligible, an independent filmmaker must show:

A. Project Record

The film in development has taken part in an A-list film festival’s development sections or labs from below:
• Cannes Film Festival | Cinéfondation Atelier
• Berlinale | Co-Production Market
• Venice International Film Festival | Venice Production Bridge
• Sundance Institute | Screenwriters Lab
• Busan Film Festival | Asian Project Market
• San Sebastian Film Festival | Films in Progress
• Mar del Plata Film Festival | Work in Progress
• Shanghai International Film Festival | SIFF Project
• Locarno Film Festival | First Look
• Karlovy Vary Film Festival | Works in Progress
• Torino Film Lab

B. Track Record

Previous films have been selected to A-list film festivals’ sections below:
• Cannes Film Festival | Official Selection — Directors’ Fortnight — Critics’ Week
• Berlinale | Competition
• Venice International Film Festival | Competition
• Sundance Film Festival | US Dramatic — World Cinema Dramatic

Deal Flow

IndieWonder has access to a vast network of filmmakers in the US, Europe and Asia through film associations, investors and institutions. Our 15+ years of expertise in film industry grants us to top film festivals and private exhibits.

Application

At any given moment during the film’s development stage, filmmakers can submit their film to IndieWonder. After being white-listed, the film will be shown on the platform as a candidate for the funding. Once the film fulfills the investment criteria (see Investment Criteria), the filmmakers can update the project status. Upon approval, the film will be added to the funding queue and depending the project timeline and status, the filmmakers can ask for their film to be added to the funding batch.

Any film project selected by the A-list festivals and film associations may apply to IndieWonder for funding. And any filmmaker with a track record of A-list festival accredited film projects may apply independently.

Portfolio, Returns and Revenue Model

Pool Structure(*):

The IndieWonder portfolio acts as a pool comprised of all shares of every invested film. This pool structure minimizes the risk of investing in films independently and maximizes the expected returns.

All returns (the full realized gain minus all expenses) earned from the pool are distributed as follows:
• To the team as bonus
• To the pool for reinvesting in new films, expanding to new locations and/or expand its investment focus in filming industry which will cumulatively grow the fund size. Growing portfolio means increase in token value.

Costs and The Vault Structure

IndieWonder has a vault for all expenses, costs and paychecks, covering its daily operations and keeping its light on. The vault will be run on Decentralized Autonomous Organization (DAO) protocol after its implemented, and all budgeting will be decided by token holders.

• Running cost: Management fee budget and other costs, equal to X%(*) of the accumulated fund size per year on average across the life of the fund.
• Setup cost: Initial set up costs, platform development, partners, employees and advisers, general partners with a vesting period of 4 years.

* These might be updated while the project expands