About our model
Strategy
Long-term perfor-
mance
Logical Content Ventures is a financial coproducer in international films and TV series.
With no predetermined end-date, its structure allows an investment strategy built on a long-term perspective (thanks to the catalog), while ensuring short-term returns.
Logical Content Ventures targets a corridor between 4 and 6% yield from year 4 and onwards, capitalizing in the long run on the library value of the cumulated portfolio.
Investment
Why invest in content?
More and more high net worth individuals and institutional players are drawn to the content industry by a compelling macro outlook. The global entertainment market has surpassed $100 billion in revenues for the first time in history, with earnings reaching $101 billion in 2019. This figure has increased by a compounded annual growth rate of 5.8% over the last five years.
The recent Covid-19 epidemic has shown that the content industry is also resilient: despite the cinemas’ closure, the spending on audiovisual content has been driven by streaming platforms and TV channels purchasing and broadcasting massive volumes of content.
Strategy
Exclusive access to the industry’s backstage
21 Content Ventures offers additional benefits – built similarly to Airlines’ loyalty programs – through the fair distribution of premium exclusive experiences related to content investment. Based on the number of Tokens they hold and the length of time they have held them, 21 Content Ventures’ investors will get exclusive backstage experiences. These benefits will reward the investors for their trust and their support in Logical Pictures’ investment vehicle.
These benefits can be:
• EP Credits: Mention of the name of the investor in the credits of the film as an Executive Producer
• Premiere tickets to prestigious festivals, backstage passes
• Visits to the set during the production of movies and TV series
• Exclusive invitations to meet the production team, the director, the cast, etc.
Blockchain
Using the finest fintech tools
Logical Content Ventures’ shares will be issued in the form of tokens. These tokens are registered in a digital registrar using the Tezos Blockchain, and they present several advantages:
• Optimizing the liquidity of Logical Content Ventures’ shares on secondary markets
• Improving the transparency of cash flow distribution
• Integrating the legal commitments made by the investors
• Attributing non-financial bonuses (visit on set, premieres, executive producer credit, etc.)
Investment
Investment focus
Stemming from Logical Pictures’ experience, the fundamental principles guiding the investment policy include a rational approach that focuses on downside risk mitigation and a systematic upstream positioning in the waterfall of revenue generated by content.
The portfolio of Logical Content Ventures fund is broken down into four different investment allocations, which depend on budget and format, and allows for an added layer of diversification for the portfolio as a whole. The capital raised will be allocated according to the following distribution:
SMART MOVIES
Smart movies are independent productions with a global reach. There are mainly genre films, which refers to any film that meets certain specific visual and / or narrative codes (for example, Italian westerns, horror films, science-fiction movies are genre films).
Genre films have the advantages of addressing an identified audience and having specific distribution channels (dedicated festival network, high sales potential on SVOD platforms, etc.)
INDIE PRESTIGE FEATURES
These films generally have the same characteristics as smart movies (production outside the studio system, international reach, genre cinema), but have a larger budget (between €12-20m). The main added value compared to smaller budget films is the presence of a more prestigious cast. This type of investment allows for a wider audience reach and a touch of prestige in the line-up.
TV SERIES
TV series have entered a new era with the rise of streaming platforms. The market’s appetite for this type of content keeps increasing, making TV series highly valuable assets – especially over the long term with the possibility of spreading the model in several seasons. The focus will be on TV series for which 85% of the budget is already completed by pre-buys from TV channels/streamers.
IMPACT CONTENT
Logical Content Ventures has the intention to generate a measurable, beneficial social or environmental impact alongside a financial return by allocating up to 20% of its investments to impact content projects. Audiovisual content has become an essential vehicle for raising awareness of contemporary societal issues, particularly for young audiences. The production of thematic and qualitative work makes it possible to have a notable impact, through specific distribution channels (festivals, activist networks, thematic platforms, word of mouth) and by addressing topics such as the environment, education, social rights, etc.
Investment
Who can invest in Logical Content Ventures?
The tokens of the Fund may only be subscribed or acquired by qualified investors within the meaning of Article 2 (e) of Regulation (UE) n°2017/1129 of the European Parliament and of the Council of the European Union of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market and repealing Directive 2003/71/EC.
The subscription is accessible with a minimum investment of €100k. Investors will have to satisfy a specific “know-your-customer” process (“KYC”) allowing the identification of the investors according to French law and the identification of the origin of the funds used by the investors to subscribe the XXI tokens complying with French regulation relating to fight against money laundering and terrorism financing (“LCB-FT”).
For all legal inquiries, please reach out to us via our contact page or via email at investing@logicalcontentventures.com.
© Logical Content Ventures