Financial tech operation FilmHedge has closed on $100M in debt financing, Variety has learned.
The Atlanta-based company offers short-term loans for film, television and other media productions — as well as products that track production spending in real-time and automate performance reports for content investors. FilmHedge has helped fund 14 feature productions thus far, including the sci-fi thriller “Beyond Skyline” starring Frank Grillo.
Private credit firm Coromandel Capital provided $50 million, as did another another undisclosed firm earlier this year. FilmHedge’s financial products determine the terms for loan offers using an algorithm, basing its model on the production finance plans and corporate agreements.
Coromandel Capital provides flexible, non-dilutive growth capital via senior secured lines of credit, and term loans to specialty finance and tech companies outside traditional traditional routes like banks.
“Our mission at FilmHedge is to make media investing more efficient, faster, and more scalable. You can’t really do that if you’re a film fund, a bank, or a private equity shop. Those models require too many decision-makers to sign off on a deal, which means they are slow,” said Jon Gosier, FilmHedge’s founder and CEO. “This is why alternative lenders like Coromandel make great partners for us. We offer a tech-first, passive way for them to generate returns from an asset class they weren’t exposed to.”
Rob McGregor, co-founder and managing partner at Coromandel Capital, added that the partnership would address “the unmet financing needs within the film industry. The team has tremendous experience, robust and proprietary customer acquisition channels, as well as the savvy to effectively underwrite and mitigate risk.”