[ young today, rich tomorrow ]

Put A Little Hollywood In Your Portfolio

By Justin Powlison on February 1st, 2004 • Career, Celebrities, Investing
Originally appeared in: Spring 2004Cover Story

There are few industries in America quite as exclusive, elitist, and members-only than the film industry. In Hollywood, wealthy producers meet with acclaimed directors over coffee to discuss the offering of one or more movie projects to a couple of A-list actors. Despite this system of insider relationships, thousands of people flock to Los Angeles every year in hopes of pursuing their dream of being in movies. A handful make it, the rest do not. What people don't realize is that it is even harder to get into movie financing and producing--until now. The entrepreneurial men and women behind Civilian Capital are setting the stage to revolutionize the entire way that movies are made. With Civilian, you can become a movie bigwig.

"Civilians are considered outsiders. They don't make movies. They watch movies. They don't count. We're going to make them count," says Peter McDonnell, CEO and Co-Founder of Civilian. He and award winning director Barry Polterman have joined forces with seasoned professionals from the investing, marketing, financing and sales sectors of business to create a brilliant new system of 'Movie Investing.'

A moviemaker may now form a company solely for the purpose of raising funds to produce the movie. For example, the first film investment opportunity offered by Civilian is through a company called Billy Dead, Inc. Its sole purpose is to fund the production of the movie Billy Dead.

As a potential investor, Civilian will provide you with a script synopsis, production details and other information that will help investors decide if they would like to purchase shares in the company. Billy Dead, Inc.'s goal is to raise more than 7 million dollars by selling 900,000 shares at $8.75 per share. It is rumored that some new companies may provide additional bonuses to investors such as listing their investors in the credits or holding a special premier of the movie.

As a potential investor you may download and read the prospectus for the film IPO, which tells you the risk factors, guidelines and current film information. Civilian provides a free portfolio, which includes all the information necessary to start investing at your discretion. Civilian requires a minimum investment of 100 shares.

When purchased, investors are given Preferred Stock, which means the investors are repaid first. If the movie is a flop, the moviemakers receive nothing until the investors are repaid, but that does not guarantee the investors a return if the movie doesn't make any money. As news and information about the movie are released, such as who are the leading actors and actresses, when the film will be released, and so forth, the price of the shares may rise or fall. This allows investors to buy or sell their shares at different values.

Do you often see hits-in-the-making like 28 Days Later, or predict box-office bombs like Gigli? Many movie fans often have a better feel than the studio executives of what will be successful and what won't. Civilian gives people a chance to choose what movies get made and what movies do not, and allows you to make some coin at the same time as being a part of Hollywood.

There are many risk factors with an investment and films are no exception. Films fall through all the time. With Civilian, however, you can use your knowledge and your discretion to choose which films you think have a chance, but you should always assess whether such investments are suitable for you.

The Bottom Line

If you prefer Cinemax to CNBC, this is right up your alley. Now go do some research (i.e. watch movies) and instead of picking the next Microsoft, you could be picking the next Star Wars.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <img> <p> <br> <blockquote>
  • Lines and paragraphs break automatically.

More information about formatting options

Image CAPTCHA
Enter the characters shown in the image.