Category Archives: Funding

Can the Ethos Equity Model Finance Indie Films?

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Jason Hellerman of No Film School interviews Ariel Heller and Sam Baron about financing in How ‘Circles’ Is Using Radical Transparency and an Equity Model to Build an Indie Feature.

Jason quotes Ariel:

“In the traditional finance model, indies rely on underpaid labor, opaque accounting, and the promise of exposure that rarely materializes into real participation. Whereas in this equity model, everyone from director to PA works for the same rate (a competitive indie wage pegged to the SAG minimums) in exchange for equity. Most crews never see a budget, never understand a waterfall, and never receive a dollar after wrap. By opening the books, educating collaborators on the model itself and giving access to budgets and cap tables, we remove the suspicion that has defined so much of the industry. Transparency builds confidence, and confidence builds better work.”

Their inspiration comes from Clint Bentley and Greg Kwedar. See their Ethos Equity Financing Model.

See Wrapbook to understand traditional Equity Financing.

My take: I like the thought behind this. Using “set time” to determine equity gets everyone in the game, however, it also devalues intangibles like a screenwriter’s years of rewrites, a cinematographer’s film school debt and an actor’s clout. To make this work, I think you’d have to assign in-kind value to these and other intangibles and add this to the Investor side. Then 60/40 to 120%, followed by 50/50 could make sense. Basically, this model has craftspeople in front of and behind the camera share 40% of all income from the first dollar, distributed by time worked, hopefully rising to 50% at some point.

 

Write a commercial spec script, please!

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Franklin Leonard of The Black List makes The Moral Case for “Selling Out”.

Read the full post because it’s guaranteed to get your fired up for 2026. Leonard starts with:

“If you’re an aspiring professional screenwriter and you want this to be your job, write a commercial spec script.”

By commercial, he means something real audiences will pay to watch.

He then goes on to ask nine questions you must answer before you spend your limited time and energy on a script:

  • Can you make a busy person want to read it in a single sentence?
  • Is it in a genre lane with an engine?
  • Does your protagonist want something visible and external?
  • Do you have a “big bad?”
  • Do you have a ticking clock?
  • Do the stakes escalate?
  • Do you have set pieces?
  • Do you land the plane?
  • Is it yours?

He concludes with this exhortation:

“Earnest as it may be, I still believe that a popular movie, done right, is a small act of care at a global scale. Look around. The world out there is rough right now for almost everyone. If you can help people set down whatever they’re carrying for two hours and, as Miyazaki puts it, “find unexpected admiration, honesty, or affirmation in themselves, and… return to their daily lives with a bit more energy,” there’s absolutely nothing soulless or frivolous about that.”

My take: I agree log lines are very important. Roger Corman would start with the poster. In both cases, they represent the concept of your story: the sum of character, plot, setting, conflict, and theme. This is the DNA of the work — choose carefully.

The numbers behind Telefilm’s Talent to Watch 2025-26 projects

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Telefilm Canada has selected 17 Talent to Watch projects to share $3.45 million from 155 submissions.

It’s quite revealing to look at the numbers in detail.

Let’s start with Type.

Narrative 9
Documentary 8

The Narrative features break down thusly:

Drama 6
Romantic Comedy 1
Sci-fi, Fantasy and Fairytale 1
Suspense 1

Province?

Quebec 7
Ontario 6
British Columbia 2
Saskatchewan 1
Yukon 1

Let’s look at Language next.

English 6
French and English 2
English and Cree 1
English and Filipino 1
English and Irish 1
English and Kannada 1
English, French and Korean 1
French 1
French and Spanish 1
French, English and Spanish 1
Japanese 1

And let’s finish up with Stream.

Filmmaker Apply-Direct 11
Industry Partner 4
Festival 1
Indigenous 1

In addition, if Gender is assumed from names:

Female approx. 20
Male approx. 18

Some observations:

  • The number of submissions is about the same as last year.
  • Non-fiction continues to be almost as successful as Fiction.
  • Drama is the most popular narrative genre.
  • Almost all of the successful projects are from Quebec and Ontario.
  • Almost half of the successful projects include other languages in addition to English and/or French — and one is in Japanese exclusively.
  • The vast majority of successful projects continue to be Filmmaker Apply-Direct.
  • Less than a quarter of the successful projects are from Industry Partners.
  • For the first time, two projects are helmed by one individual filling the director, screenwriter and producer roles, rather than a team of two or more.
  • For the second year in a row, no projects are selected from Atlantic Canada.

Hey, Atlantic Canada, what gives?

My take: this is the fourth year that filmmakers could apply directly and Telefilm has rewarded them well! Therefore, if you can apply direct, bypass your local industry partner, for odds of approximately one in nine.

Funding + Screening, together now

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Brian Welk reports on IndieWire that From Film Funding to Distribution, This Partnership Gives You Control: ‘Anyone Can Do This’.

The partnership in question is between Seed&Spark and Kinema.

Unlike other crowdfunding platforms Seed&Spark is purpose-built for film & TV projects. They have a phenomenal 82% success rate.

“Kinema is a tech platform that enables non-theatrical exhibition — what you may call grassroots screening tours — of films in person and online. We make it easy and rewarding for anyone, anywhere to organize moving showings and share in the proceeds.”

Brian states:

“Those who fund programs on Seed&Spark get a dedicated Kinema account manager and custom distribution consultations. Fees are waived for filmmakers with over 500 followers or over 1,000 campaign backers.”

But hey, if you want to DIY, at least check out their free online resource The Distribution Playbook.

My take: well worth further investigation!

Telefilm 2023-2024 Annual Report: Talent Fund analysis

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Telefilm Canada has released its 2023-2024 Annual Report. Over the next weeks, I’ll dig deeper. This week: the Talent Fund.

Telefilm links the Talent Fund with Talent to Watch, its first feature program. They report:

  • “Through the generosity of its donors and partners from across Canada, the Talent Fund raised $270,600.”
  • The Talent Fund invested $300,000 towards the $3,600,000 invested in 18 first features in 2023.
  • “In total, the Fund financed 7% of the Talent to Watch program in 2023-2024.”
  • “The Talent Fund has a balance of close to $50,000.”

You can read the full annual report here.

My take: as a Certified Independent Production Fund, the majority of the Talent Fund‘s past funding came from “CRTC tangible benefits” from major Canadian media companies and other media funds; private donations continue to be minimal and fund perhaps two documentaries a year, or one+ narrative feature films. The allocation of some of the new online streaming tax to the Talent Fund will be critical for its continued existence. See The Path Forward.

Drama is not selling

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Naman Ramachandran reports on Variety that Sales Agents Shift Away From Drama Films Amid Market Challenges: ‘It’s Led Us to Diversify Our Slate’.

“The global appetite for drama films has significantly diminished, according to a panel of international sales agents at the BFI London Film Festival.”

He quotes Sophie Green, head of acquisitions and development at Bankside Films, as saying: “The big sort of takeaway at the moment from the market is anything but drama. That really is kind of like double underlined everywhere that we go.”

Drama has become increasingly difficult to finance and sell, leading to a shift toward genre films and comedies.

My take: the pendulum swings this way and then that way. Dramas will be back, but perhaps they demand too much empathy from audiences just right now.

The numbers behind Telefilm’s Talent to Watch 2024-25 projects

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Telefilm Canada has selected 17 Talent to Watch projects to share $3.45 million from 150 submissions.

It’s quite revealing to look at the numbers in detail.

Let’s start with Genre.

Documentary 8
Drama 4
Science Fiction/Fantasy 3
Drama-Comedy 1
Thriller 1

Province?

Quebec 7
Ontario 7
British Columbia 1
Alberta 1
Manitoba 1

Let’s look at Language next.

English 9
French 3
English/Sudanese Arabic 1
Portuguese (Azorean dialect)/French/English 1
French/English/Algonquin 1
French/English 1
French/Creole 1

And let’s finish up with Stream.

Filmmaker Apply-Direct 11
Industry Partner 3
Festival 2
Indigenous 1

In addition, if Gender is assumed from names and excluding Executive Producers:

Female approx. 25
Male approx. 15

Some observations:

  • The number of submissions rose almost 20% from last year.
  • Non-fiction continues to be almost as successful as Fiction.
  • Almost all of the successful projects are from Quebec and Ontario.
  • Almost one third of the successful projects include world languages in addition to English and/or French.
  • The vast majority of successful projects continue to be Filmmaker Apply-Direct.
  • Less than 20% of the successful projects are from Industry Partners.
  • Women far outnumber men and other expressions of gender.
  • No projects are selected from Atlantic Canada.

The cynical might posit that Telefilm’s Talent to Watch program continues to compensate for the broader industry.

My take: this is the third year that filmmakers could apply directly and Telefilm has rewarded them well! Therefore, if you can apply direct, bypass your local industry partner, for odds of approximately one in nine.

How do you finance a low-budget movie in Canada?

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Case studies detailing how low-budget movies are financed in Canada are almost non-existent. But I found one!

Courtesy of LA’s The Film Collaborative, Rob Vroom details how he financed 2022’s $2.5M “You Can Live Forever,” a quirky tale of forbidden love. The seminal takeaway:

“We secure a pre-license TV deal that then triggers a top-up fund and the provincial and federal tax credits.“

The summary states:

“To fund Canadian narrative feature You Can Live Forever, Rob Vroom was able to utilize some of the same backers and funders he had used with previous films. They secured a pre-license TV deal that triggered Canadian federal top-up funding and Canadian tax credits. Canadian funding most of the time requires distribution to be in place beforehand, and although the film was Sarah Watts’ and Mark Slutsky’s first feature, Canadian distributor Mongrel Media stepped up and came on early.”

Robert explains:

“I proposed a CAD $2.5 million Canadian budget. I was able to raise that money through Telefilm Canada—through SODEC—which is our Quebec provincial equivalent to Telefilm, via a pre-license deal with CBC and a top-up fund through the CMF (Canadian Media Fund). If you can secure a pre-license fee of at least 5% of your budget, then CMF will top up another 15% of your budget, which for us was huge. And then of course tax credits.”

This table is very revealling:

equity / grant / TV licence / tax credit amount
SODEC CAD $750,000
Telefilm CAD $550,000
CBC Films CAD $125,000
CMF CAD $373,500
Provincial Tax Credits CAD $402,000
Federal Tax Credits CAD $80,000
COVID Support Fund CAD $195,000
Producer Investment CAD $15,000

To summarize how to finance a low-budget feature film in Canada:

  1. Get Telefilm Canada funding.
  2. Get a Canadian Distributor (see below.)
  3. Get a TV license to trigger CMF funds.
  4. Make the movie and apply for Canadian federal and provincial tax credits.

My take: Some might wait until their festival release and the hoped-for bidding war, but I think it’s a great idea to get a Canadian distributor on board as soon as possible. They can help you secure:

  • A direct pitch to a foreign streamer doing business in Canada that as of September 2024 must contribute 5% of Canadian revenue to CanCon (and they can choose to direct invest 2% of that 5%.) See http://www.informediation.com/blog/2024/06/19/is-the-digital-ecosystem-starting-to-look-a-lot-like-tv/ The Big Three are Netflix, Prime Video and Disney+. (CAVCO insists you approach these through a Canadian distributor to qualify for Tax Credits!)
  • A Canadian TV deal. They’ll get you in the room to pitch to CBC (includes GEM,) Bell Media (includes CraveTV,) and Rogers. This will then trigger Canada Media Fund funds.
  • An Educational TV deal: Knowledge Network in BC and TVO in Ontario.
  • Airlines for in-flight entertainment.
  • US and International distribution deals.
  • A one-week screening in Toronto to qualify for the Toronto Film Critics Association’s $50K Rogers Best Canadian Film Award, perhaps the biggest film cash prize in Canada. See https://torontofilmcritics.com/awards/signature-award-2-2/ (Hey Rogers, why did you reduce this prize by half, from $100,000? Are you goading someone else to offer more? Netflix and Prime, I’m looking at you!)

Telefilm funds Lim’s “The Bryce Lee Story” for $500K

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Local Victoria, BC, filmmaker Arnold Lim has just secured $500,000 from Telefilm Canada towards the funding of his second feature film “The Bryce Lee Story“.

Arnold is in Paris currently, preparing as Photography Manager for the Paris Olympics — his fifth! He graciously replied to my questions by email.

Q: Congratulations, Arnold! What’s the log line for “The Bryce Lee Story”?
A: The Bryce Lee Story is the story of a young Asian boy named Bryce Lee, who lies about being related to Bruce Lee in order to fit in at school.

Q: What’s your budget and how much has Telefilm committed?
A: We are aiming for a $1.5-million budget, which will be my first low budget film as a Director after working predominantly in micro-budget filmmaking and Telefilm has committed $500,000 to our project.

Q: Where in the world and when are you filming?
A: I love Vancouver Island and feel my home island is vastly underrepresented on film despite literarily being one of the best places on earth. We plan to shoot most of the film in Greater Victoria and Chemainus. My goal is to shoot here for every film if possible.

Q: What’s the biggest issue you face right now?
A: The biggest challenge is funding! Always funding, but equal to that my biggest issue is probably going to be casting. Finding Asian actors in Canada, especially young Asian actors is very challenging for a lot of reasons: from there not being many opportunities for them to begin with, so there aren’t a ton of opportunities to gain on-set experience and grow as an actor; to the performing arts not necessarily being a focus for some Asian parents as an activity for their children. There are of course exceptions but largely casting is always one of my biggest fears going into any film I make that has an Asian lead.

Q: Are there any locations or props in the script that you know are going to be difficult to find?
A: I am going to be looking for working versions of some 90’s cameras so props and production design are going to be a major challenge because our film is set in the late 90’s ish — but I am also excited by the proposition, and grinding those challenges out with a group of dedicated and like-minded artists is something I am excited about.

Q: Are there any cameo roles and do you have folks in mind?
A: I do have at least one in mind. But I can’t say who it is quite yet. 😉 Sorry!

Q: How does going to the Olympics as Photography Manager impact your time?
A: I am very privileged to have the opportunity to be a part of the Olympic experience, but it is always a time of hyper focus for me because it is such a challenging job. In my opinion the amount of time and energy and love and artistry and passion and gruelling grind necessary is akin to making a feature film and I love the challenge of it, but it is a marathon and takes a lot of time and energy and pulls me away from my family. I really miss my wife and children when I am away.

Q: Is there anything else you’d like to add?
A: I can’t thank Telefilm enough for the opportunity to make a second feature film, but I am also extremely proud of and grateful to the amazing artists on Vancouver Island and in B.C. who work in and support independent film. I have this opportunity because of amazing people like the producer Lynne Lee and many, many other cast and crew, especially on Vancouver Island, who have chosen to work with me and share their passion and artistry even when the prospects of making money are low and the challenges are high. I can’t thank them all enough.

My take: What can’t Arnold do? Next week I’ll look a ways to raise $1M — if you have ideas, let’s hear them!

The “Netflix Tax” is very near

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The CRTC has announced that streamers doing business in Canada will help pay for CanCon by contributing 5% of their revenues starting September 2024.

“The CRTC is requiring online streaming services making more than $25 million to contribute 5% of their Canadian revenues to support the Canadian broadcasting system.”

The 5% contributions from online streaming services will go to:

  • 2% to the Canada Media Fund and/or direct expenditures towards certified Canadian content;
  • 1.5% to the Independent Local News Fund;
  • 0.5% to the Black Screen Office Fund, the Canadian Independent Screen Fund for BPOC creators, and/or the Broadcasting Accessibility Fund;
  • 0.5% to the Certified Independent Production Funds supporting OLMC producers and producers from diverse communities; and
  • 0.5% to the Indigenous Screen Office Fund.

The 5% contributions from audio streaming services will go to:

  • 2% to FACTOR and Musicaction;
  • 1.5% to a new temporary fund supporting local news production by commercial radio stations outside of the designated markets;
  • 0.5% to the Canadian Starmaker Fund and Fonds RadioStar;
  • 0.5% to the Community Radio Fund of Canada;
  • 0.35% to direct expenditures targeting the development of Canadian and Indigenous content and/or a variety of selected funds; and
  • 0.15% to the Indigenous Music Office and a new fund to support Indigenous music.

The CRTC feels this decision balances the playing field in Canada:

“For decades, traditional Canadian television and radio services have financially supported the creation of content made by and for Canadians, and have showcased that content on their services. Meanwhile, online streaming services, which have been operating in Canada for well over a decade, have not been required to contribute in similar ways. In the Commission’s view, online undertakings that benefit from their place in the Canadian broadcasting system by generating significant revenues and drawing significant Canadian audiences should contribute to the system.”

There is a silver lining. Streamers can count their Canadian projects as 2% of their 5%. “Online streaming services will have some flexibility to direct parts of their contributions to support Canadian television content directly.”

My take: This 5% is not actually a tax that will be added to consumers’ bills. However, I’m almost positive streamers will raise their prices by at least 5%, so perhaps it’s a corporate levy, and not a consumer tax. Just get ready to pay more.