IPSE innovations is a novel way to providing a new source of capital to the entertainment industry by transforming ‘intellectual properties‘ (IP) rights into negotiable securities.
IPSE offers a ‘crowdsourcing’ method to finance entertainment properties such as movies by listing the movie rights on the NASDAQ where transactions are concluded between the IP holders and investors.
IPSE works the same way as a pass-through security creating a direct, reliable and transparent return of capital for investors.
IPSE intends to democratize the way movies are financed by introducing financing via the stock market.
KEY FACTS:
- Potential addressable market of 700+ movies to be financed each year. IPSE targets 50% in the long run
- Movie financing market represented USD 10+ billion in 2018
- Movie financing market is growing 3% each year
- IPSE is targeting up to 10% of the market in the long run
- Approximately $25 billion of annual U.S feature film revenue (all sources including DVD and TV) in 2019.
IPSE will launch its activates by securitizing (financing) top-end Hollywood movies with established producers, directors and bankable actors attached. The all in cost (production budget marketing and distribution) minimum to insure a successful financing through capital markets (liquidity, demand etc.) is of $40 million.
IPSE already has agreements with the top three movie producers and directors to start financing 23 movies and up to 286 movies with a budget of $100 million each.
If producers or originator of a movie IP is unable to pay for securitization of their IP but IPSE sees the value of their IP, IPSE could purchase a permission and/or license to securitize the IP. This builds a cohesion between producers seeking financing and IPSE building a portfolio of IP securities that it holds and manages itself.
