INVESTOR PROTECTION FUND

AVAILABLE TO FILM INVESTORS OF $10M USD OR MORE


Assume that you are an Investor who has been offered an interest in a $50M film project.  You have $10M that you really want to invest in it, but you have concerns that you could lose some or all of your money.  The producers have structured an agreement with the you to pay you 5% interest on your invested funds and 30% equity at the backend.


The FundingNet “Investor Protection Fund” makes it possible to maintain your deal, but keep 100% of your money on the “sidelines” until you are comfortable and confident, that the project is going to succeed. Simply open a dedicated bank account in your name at a top tier bank, and deposit your $10M there.  You will be required to add one of our Compliance Officers to that dedicated account so that he has the ability to “View” the account, and therefore confirm that the capital remains non-depleted and unencumbered for as long as you wish to remain on the sidelines.  We set up a contract with you so that WE fund the $10M to the project on your behalf, while your money sits safely in your account.

 

The cost to you (the investor) is a mere 4% per annum on the amount that you are “insuring”.  That 4% enables you to “test the waters” until you are certain that you want to jump in! We do not require any Personal Guarantees from you, but instead would have the guarantee that is assigned to you by the project temporarily assigned to us.  Once you are comfortable and confident that the project is on its way and safe for your money, you can then SWAP out our money for your own.

20% ETN (EXCHANGE TRADED NOTE)

This program has been designed for clients who have excess capital that they would like to earn an above-average rate of return on, or for those Business Owners/Corporate Entities that are looking for ways to create excess cash flow to maintain their business's needs through the COVID lockdown period.  To participate in the “ETN” Program, clients must have a minimum of £1M Sterling.

We refer interested clients to a FCA (Financial Conduct Authority) Licensed Broker in London, who will have them complete a “NCNDA form, at which point the client receives all of the pertinent documentation for participation in this FCA Registered/Regulated investment.  That Capital Management Company will then help you subscribe to the investment, in a step by step fashion.

Here are the highlights of the opportunity;
1) Fully Regulated Capital Management Company out of the UK.
2) “ETN” (Exchange Traded Note).
3) Listed on BOERSE (Frankfurt Stock Exchange).
4) Rated as a Tier 1 Regulated Security.
5) Bankers are Citibank and Goldman Sachs.
6) Fund administrator manages 1,078 Different Funds totaling €190 Billion Under Management.
7) No up-front deductions, 100% of Capital Invested.
8) Targeted 20% annual return.
9) Can redeem anytime with 120-day notice.
10) FOI (Financial Offering Insurance) through Lloyds of London

CHARITY FINANCING PROGRAM

In 2020 many charities have found it very difficult to raise funds in their traditional manner due to restrictions on public gatherings and travel.  To help organizations make up this shortfall, we have developed our two programs in order to;

(A)  Allow charities to never have to deplete their existing funds

(B)  Focus on a recurring revenue stream from those existing funds
(C)  Create recurring revenue to run their operations on an ongoing basis, rather than rely on one-time donations
(D)  Provide a fully regulated product for smaller donations that create a secure return for both the supporter and the charity.

With this in mind we have created two programs.

 

PROGRAM 1: FOR CHARITIES WITH $10M+ IN EXISTING FUNDS

Under this program there must be a deposit account in a Top 20 Bank in the name of either the Charity, a financial supporter of the charity, or a designated Fiduciary appointed by the charity.  The bank account must be in a “Top 20” Bank in the UK, or any other good Jurisdiction such as Western Europe, USA, Canada, Australia etc..  The funds deposited and held in this account must be a minimum of $10 million USD.  We will need to add one of our compliance officers as a signatory to that account, giving them the ability to “View” the account, and we will need to work with the bankers to structure this account for our program (by setting specific permissions through the use of dual signatures etc., so the capital is protected from anything more than “viewing”).

It will take us about 60 days to structure the charitable funding behind the deposits; however after 60 days we will be able to give to the charity twenty-five percent (25%) of the deposit amount each month, for the entire time these funds remain in the program.  We realize this is a ridiculously high rate of return - please contact us or your FundingNet agent so that we can break down how it works.  But be confident that your initial funds in your account are always 100% safe - there can never be any claim, lien or encumbrance against them.  This program is designed to help charities maximize their potential revenue streams simply from the existence of those funds.


 

PROGRAM 2: FOR CHARITIES WITH BENEFACTORS PROVIDING LESS THAN $10M USD

We also have a charity solution for deposits UNDER $10M USD.  For this, we utilize our Fully Regulated, “ETN” Program (see above), and the same protocols to set up the process.  When applied to a charity, the “ETN” Program provides slightly different (and more substantial) benefits.

 

The charity's supporter would enter the ETN program on behalf of the charity, with their funds (a minimum of £1M Pounds Sterling) being entered into the program through to the FCA Licensed Securities Broker in London.  As described in the ETN section above, all funds are fully secured and insured.  But rather than receiving just 20% per year as the coupon for the ETN, 20% per year is paid to the Supporter, AND AN ADDITIONAL 20% per year is paid to the Charity.

 

IN ADDITION, if the supporter chooses to give any or all of their 20% donation back to the Charity, then FundingNet will match that amount in full, up to an additional 20%, so the Charity can make as much as 60% per year off of these amounts.

Both of these solutions have been a reaction towards the current “new normal” for charities, and we are doing the best we can to amend our program to try and accommodate this new normal. Because it is more difficult than ever for people to give to charities, having the Supporter make a 20% return and still make an additional 20% for their charity creates a new opportunity for philanthropy.

All content herein is for informational purposes only, and any such information should not be construed as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by FundingNet or FilmCabbage, or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.  All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. FundingNet and FilmCabbage is not a fiduciary by virtue of any person’s use of or access to the site or content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the site before making any decisions based on such information or other content. In exchange for using the site, you agree not to hold FundingNet or FilmCabbage, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the site.

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