Whether through investments or in-kind donations, our financing will go entirely towards the production of The Downline; our location rentals, our crew, and our cast.
INVESTMENT STRUCTURE
Tiered units include $25,000 (Executive), $5,000+ (Associate), and $500+ (Community)
All tiers will have the opportunity to visit the set, download the screenplay, enjoy the wrap party, come to the premiere, along with more perks!
Equity Share: Investors will collectively own 50% of the Net Profits (the "Back End").
Preferred Return: 100% of the investment is recouped plus a 20% "Preferred Return" before the Producers participate in any net profit sharing.
Funding may be accepted by the PRODUCER either in a single lump-sum closing or on a rolling basis through one or more closings as subscriptions are received. The PRODUCER may begin applying accepted funds to development, production, post-production, delivery, marketing, or other approved costs of the FILM as such funds are received, provided that all INVESTORS shall participate in recoupment and Net Profits in accordance with the terms of this Agreement and in proportion to their respective investments.
THE RECOUPMENT WATERFALL
First Out: Sales Agent fees and Expenses (standard industry rates).
Investor Recoupment: 100% of all remaining revenue goes to Equity Investors until 120% of their initial principal is returned.
Net Profits (The 50/50 Split): Once investors are made whole (plus their 20% premium), the remaining "Net Profits" are split 50% to the Equity Investors and 50% to the Producers/Talent Pool.
Illustrative Timeline for Potential Investor Returns
In many cases, the earliest potential investor distributions, if any, are not seen until approximately 12 to 24 months after principal photography begins, and full recoupment, if achieved, may take longer.
Months 0–6: Production and post-production; generally no investor distributions during this period.
Months 6–12: Festival strategy, sales outreach, and early market positioning; distribution discussions may begin, but revenue is still uncertain.
Months 12–24: Potential initial receipts from tax incentives, minimum guarantees, distributor advances, or first licensing deals, if secured.
Months 18–36+: Longer-tail revenue may be received from streaming, television, digital rentals or purchases, foreign territories, educational or non-theatrical licensing, and other ancillary exploitation.
This timeline is provided solely as a conceptual framework to help investors understand a customary independent film revenue cycle.
Actual timing will depend on financing, production, festival acceptance, market response, distribution strategy, delivery requirements, release timing, and the overall commercial performance of The Downline, and there can be no assurance that any investor will receive any distribution at any time.
