Exclusive: Film financer FilmHedge raises $5M
FilmHedge, a provider of short-term loans for film and TV series, has raised a $5 million Series A round to improve its data platform, its CEO exclusively tells Axios.
Why it matters: The company aims to address financial needs in the mid-budget film space, where funding has dried up as major studios pour money into awards bait or $200 million blockbusters.
How it works: FilmHedge takes money from hedge fund, private equity and financial services clients and lends it out to film companies.
- The need for financing this part of the industry was strong pre-pandemic, CEO Jon Gosier tells Axios.
- "COVID poured fuel on the fire,” he said.
- FilmHedge uses fintech to track every dollar spent by the producer or the production company.
Details: FilmHedge will use the funding primarily to expand its product and marketing teams, as well as improve its data platform.
- The round was led by Collab Capital, WOCStar, TriplePoint Capital and the Savannah College of Art & Design.
Catch up quick: In May of 2022, FilmHedge closed a $100 million credit facility from Coromandel Capital and Fallbrook Capital, with options to expand both lines of credit.
- FilmHedge has helped its clients finance more than 20 projects, which fall within the $5 million to $30 million budget range.
- The company says its average return on transactions in the last year was 11.28%, above industry averages of 9% to 11%.
What's next: FilmHedge is looking to expand into gaming and music.