Capital Fims Production, a film financing firm founded by Adim Isiakpona and Hamza Kassim, recently launched a ₦500 million fund called Act 3. The fund is aimed at investing in a lineup of Nollywood movies in the coming year.
However, Capital Film’s latest investment in the Nigerian movie industry is not a new endeavour, as clarified by Adim Isiakpona, the venture’s Co-founder and CEO, in a chat with Technext. The company has actively supported the growth of the African film industry, particularly Nollywood, for the past three and a half years. During this time, they’ve invested around $800,000 in four movies, thanks to the support of Nigerian investors.
Also, both co-founders have had a rich history in the Nigerian film industry, having been executive producers of hit films like “Gangs of Lagos” and “Brotherhood.” According to Adim Isiakpona, the latest investment is a continuation of the work the firm has been doing.
The launch of this fund signals a significant boost for Nollywood which is currently on a path to global recognition with films backed by international streaming giants like Netflix and Amazon Prime. In this article, we delved into the key insights from our conversation with Adim to explore the impact of this investment on the Nigerian movie industry and the broader implications.
Techpreneurs’ new penchant for investing in movies
There is a growing trend of tech entrepreneurs diversifying into movie investments in what has become a structural evolution lately. With the maturation of the Nigerian tech ecosystem, individuals with experience in raising funds and structuring deals for startups are now applying these skills to film investments. This is evident in a recently produced movie, ‘The Black Book’ which was produced and directed by known Nigerian techpreneurs.
According to Adim, this is good for the industry, as they bring in their expertise, potentially elevating the quality of films and storytelling.
Movies as an investment sector
Investing in movies is not entirely new, but the recent success of Nigerian films and the entry of international streaming platforms have made it a more appealing investment option. While the film industry offers excellent returns, it is essential to have a genuine passion for filmmaking or be willing to learn its intricacies, according to Adim.
Movie investments are seen as a “smart but cautious and patient” form of investment, focusing on both financial gains and the industry’s growth and development. “The entry of streaming giants like Netflix and Amazon into the market, along with the international success of Nigerian films like “Gangs of Lagos” and “BlackBook,” has added credibility to movie investments’” he says.
Selection criteria for movie investments
Investing in movie productions is particularly interesting. This is because the revenue returns are entirely based on the response it generates from viewers, supposingly it meets their taste. In response to the criteria for selecting a movie for possible investments, Adim says at Capital Films Production, filmmakers are at the centre of their investment approach.
They seek filmmakers with “unique voices and perspectives on storytelling, emphasizing their artistic approach.” Distribution strategy, production costs, and demand for the story are all factors they consider when deciding on investments. According to him, it all begins by identifying and collaborating with filmmakers.
Capital Films Production is not limited to a select group of filmmakers, says Adim. The company remains open to discovering new voices and storytellers in crucial markets like Ghana, South Africa, and Kenya. The company is dedicated to supporting the industry’s growth and development and aligning its mission with the aspirations of talented artists.
Impact of Streaming Giants on Nollywood
One of the most significant changes in the Nigerian film industry has been the entry of global streaming giants like Netflix and Amazon Prime. These platforms have brought structure to film production and distribution, raising industry standards and enhancing the quality of films.
This transformation has created new opportunities and expanded the reach of Nollywood, allowing it to capture a global audience. However, while streaming platforms have indeed been a game-changer, Adim says it is important to note that cinemas still hold a strong position in the film industry.
Collaborating with the competition
The recent entry of Sony and other venture capitalists into the Nigerian film space might be considered stiff competition. But the Capital Films CEO said he views this as an opportunity for collaboration, rather than competition. Collaboration is essential for industry growth, and the abundance of filmmakers with varying needs makes collaboration a logical approach.
I don’t see it as a competitive scenario; rather, it’s an opportunity for us all to collaborate and foster growth. While there may be a limit to the number of films available for investment, there’s an abundance of filmmakers with varying needs, spanning from blockbuster productions to everyday stories and short films.
Future Prospects
While specific details of the filmmakers and movies they are working on remain confidential, Adim Isiakpona says CFP is excited about upcoming projects and the impact they will have on African and international audiences.
“These films are expected to be conversation starters and table shakers,” he said. He also assured that they would underline the company’s dedication to the growth and success of the African film industry.
