Insights from the Creative Investors’ Conference at San Sebastian

This morning at the Creative Investors’ Conference in beautiful San Sebastian, a gathering of some of the industry’s most prolific financiers focused on a hot-button issue: the flow and directional purpose of investment in creative projects. Under the guidance of CAA Media Finance executive Sarah Schweitzman, key players in the finance sector shared their perspectives on what projects are capturing their interest, and which ones they deem unworthy of investment.

The Shift in Investment Focus

Andrea Scarso of IPR.VC, Frederic Fiore from Logical Pictures, Alexandra Tynion of Tricky Knot, and Karl Spoerri of Zurich Avenue provided valuable insights into their current investment strategies. Notably, Tynion openly stated, “We aren’t financing small things.” This is a clear shift towards backing larger, more commercially viable projects. When discussing their smallest project of the year, Urchin, Tynion emphasized that the decision stemmed from a solid relationship with actor Harris Dickinson and a robust marketing strategy. The trio’s focus appears to be firmly planted on films that have clear audiences and measurable growth potential.

Trends and Gaps in Genre

While there’s a hesitance towards smaller projects, Tynion highlighted an eagerness to explore genres that are making a comeback. Citing the success of Celine Song’s sleeper hit The Materialists, which blends romance with drama, she asserted that there remains a substantial appetite for theatrical stories rooted in emotional resonance. Tynion argued that the success of such films demonstrates an undisputed interest in genres that may have waned in popularity.

Expansion Beyond Traditional Content

Scarso of IPR.VC pointed to an evolving landscape known as the “new content economy.” This refers to the expanding realm of content creation that transcends traditional film and television formats. This signals exciting opportunities for investors willing to explore projects that can be monetized in innovative ways—ranging from digital platforms to immersive experiences.

Regional Opportunities: The African Market

Frederic Fiore expressed a keen interest in the African continent, a landscape he believes is ripe for investment. “Africa is a place where we are interested,” he asserted, revealing plans to launch a new fund specifically aimed at African creative bodies next year. He mentioned a horror movie set in Africa that his company, Logical Pictures, will finance, indicating a strategic focus on distinctive stories from this vibrant market.

Alongside Fiore, Karl Spoerri echoed the enthusiasm about the wealth of talent emerging from Africa, recognizing it as a key area for growth in the film industry. However, both investors also underlined the importance of avoiding projects overly reliant on one market. Fiore pointed out the pitfalls of “typical Sundance movies” that succeed in the U.S. but struggle to find global traction.

Innovative Financing: Brand Sponsorships

A noteworthy trend highlighted by Tynion was the new approach to funding films via brand sponsorships. She emphasized that there is significant capital waiting to be unlocked through collaborations with major brands. Tynion mentioned their ongoing project involving soccer star David Beckham, which incorporates sponsorships from Adidas and other brands. This approach not only provides financial backing but also enhances the reach and marketing potential of projects.

In a similar vein, Tynion spoke about a partnership with Cash App for a new production venture led by actress Tommy Dorfman, illustrating the increasing importance of brand collaboration in the financing spectrum.

A Vibrant Event Ahead

As the San Sebastian festival runs until September 27, attendees can expect more engaging discussions and insights into the ever-evolving landscape of creative investment. The conversations at this conference not only underscore current trends but also provide a glimpse into the future of film financing and what investors are looking for in a rapidly transforming entertainment industry.