Hollywood financier and hit movie producer, Christopher Woodrow, is advancing in the sale of the MovieCoin Smart Fund (MSF) security token. The project claims to bring high levels of investor access, liquidity, and efficiency to the traditionally investor-inaccessible film industry known as Hollywood.
Christopher Woodrow is the CEO of Moviecoin, a blockchain-based project which utilizes both utility and security tokens. Woodrow is confident that Moviecoin’s new security token has the potential to reinvent Hollywood’s current venture capital model.
The Traditional Hurdles of Motion Picture Investments
According to Woodrow, the existent system for financial funding in Hollywood is simply outdated. It currently requires a substantial investment from the start, which limits its investor base to a very small crowd.
“To invest in Hollywood, one previously had to show up with a check for $50 million dollars for anyone to take them seriously.”
Yet the requirement of up-front capital isn’t the only downfall of the current system. Investors are frequently locked up for significant amounts of time, says Woodrow.
“Those investing in a movie are traditionally locked up for several years. Those investing in several movies could even be locked up for a decade.”
The barriers to both access and liquidity are precisely what Woodrow aims to break with the MSF Security Token. The reputability of the project is grounded in his considerable experience.
Woodrow’s Time in the Film Industry as the Foundation for Moviecoin
In the past, Woodrow served as chairman and CEO at both Vendian Entertainment and Worldview Entertainment. Both companies provide the financing and production of motion picture films, featuring a lucrative background of box office success.
They have produced a combined 30 feature films under the direction of Woodrow, to include names such as Birdman, Black Mass, and Hacksaw ridge, which share a total gross of more than $700 million internationally.
Christopher Woodrow, CEO of Moviecoin.
How the MSF Security Token can Change Hollywood
The funds acquired from the sale of Moviecoin’s security token will be put to use immediately following the completion of the sale. The details of where the funds will go was outlined by Woodrow.
“We believe that the MovieCoin Smart Fund (MSF) security token will be groundbreaking for Hollywood in a number of ways. First, we are selling $250 million dollars’ worth of security tokens to finance 60 movies over the next six years. This means that 10 movies a year will be financed using capital raised from the sale of MSF security tokens. All of the films will fall within the $15-$65 million dollar budget range.”
Through the sale of such a token, investors located across the globe who don’t have the traditionally required $50 million-dollar investment are able to participate. The benefits result in a degree of investor access and market liquidity which Hollywood has yet to see, says Woodrow.
“Utilizing blockchain can open up an entirely new asset class to accredited investors. […] This is a real significant change in Hollywood, as a tremendous amount of liquidity is being brought to a previously illiquid asset class.”
Will the MSF Security Token prove successful in recreating Hollywood’s existing venture capital scheme? Will security tokens lead the way in establishing new forms of investor-producer relations for the film industry? We want to know what you think below.
Images courtesy of Blockchain News and Tech Bullion.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.