Grace Ashiru
Capital Film Productions, established by Adim Isiakpona, an ex-Google employee, and Hamza Kassim, who works as a business opportunity manager at Shell, has recently introduced Act 3, a new fund of ₦500 million. This fund is dedicated to investing in a variety of Nollywood films. Both founders have a history in film production, with credits as executive producers for the Nollywood successes “Gangs of Lagos” and “Brotherhood.” Additionally, Isiakpona contributed as an associate producer on “Sugar Rush.”
Over the last three years, Capital Films has successfully garnered $800,000 through two different funds. These funds have been instrumental in backing the production of seven movies. The company has reported a 37% cumulative return from these investments. Emphasizing its focus on retail investors, Capital Films has attracted 37 investors in its previous funds. It sets a minimum investment threshold of ₦10 million for interested parties. For each film project, the company commits to investing a minimum of ₦50 million, and can go up to a maximum of ₦100 million.
Isiakpona, the CEO of the company, informed TechCabal that their approach to selecting movies for investment involves a thorough examination of the filmmaker’s history and business model. The budget for each movie varies depending on the specific project and its storyline. They anticipate a 24-month average return cycle on their investments.
Nollywood is currently experiencing a trajectory towards global recognition, with international streaming giants like Netflix and Amazon Prime endorsing and licensing new films. “Gangs of Lagos” has achieved a place among the top 10 non-English movies on Amazon Prime, while “The Black Book” garnered over 70 million views on Netflix within less than three weeks, solidifying its position as the leading streaming platform.
Capital Film also provides advisory services to filmmakers and collaborates with them during the scripting and casting stages to guarantee the film’s marketability and a viable return. “We aim to comprehend the distribution model, production timeline, and expenses. Our goal is to maintain our investment at around 50% of the project’s cost, although it may range from 25% to even less than 25%. We refrain from exceeding the 50% mark to avoid overinvesting in any single project,” stated Isiakpo.
Professionals in the tech industry are showing a growing interest in investing in Nollywood.
Capital Films’ launch coincides with a growing trend where tech-focused professionals are increasingly involved in financing or even producing Nollywood films. “The Black Book,” directed by Editi Effiong, a former software engineer, received financial backing from African startup founders and investors such as Nadayer Enegesi (Eden Life), Olumide Soyombo (Voltron Capital), and Ezra Olubi (Paystack). These investors are drawn to Nollywood because of its shorter return on investment cycle, often around 24 months, compared to the longer and less frequent return cycles in Africa’s tech ecosystem, which primarily involve exits and IPOs.
“We believe Nollywood is on the brink of significant growth, and we aim to contribute to this expansion by establishing a more structured framework and enhancing capacity, either through financial support or active involvement in film production,” stated Isiakpona during an interview with TechCabal.
For filmmakers, the inclusion of external investors can bring fresh perspectives and catalyze change in an industry that is just starting to establish itself within the global economy. Tolu Awobiyi, a seasoned filmmaker with a decade of experience and the producer of “Bling Lagosians,” shared with TechCabal in September that venture capitalists have provided valuable assistance to filmmakers in terms of business advisory, investment risk management, and stakeholder management.
“My interactions with VCs have been valuable in learning how to navigate the challenges of our business,” Awobiyi noted. “Traditionally, VCs interested in film investments tend to be hands-on due to their creative inclinations, which initially attract them to this industry. Their prior experience in other sectors equips them with valuable knowledge for managing the risks associated with high-return environments like ours.”
“As our firm launches, we are in the process of closing our third fund, which will finance six movies in 2024,” Isiakpona shared with TechCabal. “We anticipate this fund to grow to $50 million. CFP represents a dream realized for us. It began as a humble idea with ‘Our First Act,’ where we raised funds from our finances to support film projects. This evolved into a ‘Second Act,’ where we managed Liquidity Provider’s funds. Through these experiences, we have witnessed firsthand how access to adequate funding and support can elevate not only individual film productions but potentially the entire industry.”
