What is the distribution potential of feature animation? (Case Study)

In the last 5 years, 4 out of 7 most-watched films are animated features, even if we exclude companies such as Disney, Pixar or DreamWorks, which firmly stand at the top of the list, feature animation, in general manages not only to bring back invested funds in first two years after premiere but also to remain a huge potential for a long distribution in different forms and media.

European animated film is financed almost entirely from national, regional and European funds. Since most of these funds are limited, the financing period is usually longer than expected and often requires more than two countries of co-production to complete it. In Europe, there are only between 10 and 20 feature animations per year compared to over 1000 live-action ones.

Animated features - EuropeYearBudget (EUR)Box Office / Cinema
Les Triplettes de Belleville 2003 9.5 million 14.8 million
Waltz With Bashir 2008 2 million 11.1 million
Persepolis 2007 7.3 million 11.1 million
The Flight Before Christmas 2008 6.1 million 21.8 million
Ernest & Celestine 2012 8.9 million 8.1 million
The Snow Queen 2012 7 million 13.6 million
The Snow Queen 2 2014 6.5 million 15.6 million
Loving Vincent 2017 5.5 million 45 million
Up and Away 2018 1.2 million 1 million
Robinson Crusoe 2016 13 million 42.5 million
Big Foot Family 2020 20 million 40.7 million
Animated features - North AmericaYearBudget (EUR)Box Office / Cinema
Coraline 2009 60 million 124.6 million
Zootopia 2016 150 million 1.024 million
Paranorman 2012 60 million 107.1 million
Corpse Bride 2005 40 million 117.2 million
The Boxtrolls 2014 60 million 109.3 million
Inside Out 2015 175 million 857.6 million

All given examples concern cinema distribution only. Additional income comes from television, internet, Blu Ray, VOD platforms (Netflix, Amazon, Apple Pay, Disney +), merchandise sale, branding, converting IP to other forms such as series, games, books, etc. that can bring long-term income. Contracts are usually renewed every 5-10 years for the world or regional rights. Animated films from the 2000s, 90s, 80s, all the way to the 50s (Lady and the Tramp, 101 Dalmatians, etc.) still have their active distribution compared to live-action films where time leaves significant marks leaving only proven classics on the air at specialized channels.

A new model of temporary distribution and production due to Covid19 virus changes focuses more on VOD platforms that are increasing their investments in animation due to its most global distribution possibilities. The best example of direct world rights sales is a recent acquisition of the Canadian film NextGen (Tangent studio) for 30 million euros while making the same title cost the same amount (previously financed).

Animation takes time to make. Sometimes a couple of seconds of the screen time take a couple of weeks to produce. But, on the other hand, it is the widest distributed film technique definitely worth the wait. The only challenge and test at stake is patience. Return of investment can be expected two years after the project is distributed.

FAQ for Investors

Why invest in animation?

We believe that moving pictures, being drawn, stop-motion, computer 2D or 3D – speak the universal language of mankind. Being borderless, animation helps us connect with ourselves and each other effortlessly. Our vision is to let these surreal worlds take us as far as our imagination can go. Check out our current portfolio.

How does Animond work?

Bringing film financing companies, private film investors, the public, and storytellers together in one place grows the whole animation industry. Using both an individual offline approach and an online crowdfunding setup, investors have various options to diversify their investment portfolios. Our team is made up of animation creators, producers, and investment fund managers. Our mission is to help grow the storytelling animated projects by connecting them to necessary financing and to help investors find the right projects they want to be associated with. Animond carefully selects the projects which will be included in our portfolio. We protect financiers through evaluation of the projects’ financial, production, distribution plan, and budget. We guarantee the transparency of where the funds are being used and why needed financing is required. Animond allows all sizes of investors and financing companies to connect with animation makers who are looking for project funding.

What is Animond's strategy?

We mainly work with film projects at an advanced stage and are looking for the final amount of financing. We focus on film projects with a commercial appeal, an identifiable audience, moderately low and controllable costs, and a sound financial structure. We also require that certain elements are in place before we commit to any film project. Our strategy is based on gap funding. Gap financing plays a small but important role in getting a film made as finishing funds. Gap financing is a single film financing for projects which already have 70 to 80 percent of the budget covered before asking for gap financing in an amount over existing presales guarantees. So if you have a one-million-dollar film and you have $800,000 in presales, you would need to gap finance the full amount with a sum of $200,000. We do our own analysis to make sure our risks are kept to a minimum, but gap financing is not risk-free. Our main focus is on our portfolio as an investment opportunity. We work alongside the directors and producers to make sure that our projects stay within their financial budget and timeline.

What does Animond do?

Animond is the bridge between animated projects and investors. Through our portfolio, you can see all of the projects we currently have available to invest in. Each animation has information gathered about it, such as the production team, a synopsis, requested budget, and more. Once users find an investment, they invest directly through our website or contact us through a form. We run a small background check before a person/company can invest in the project to know they can make the level of the investment they are offering. Once this is done, we speak with the person to ensure that they are as well-informed as they can be. If an investment sounds like something right for you, head down to our portfolio page to see what investment opportunities are currently open. There are always new investment opportunities arising, so make sure that you check back regularly to see what we are currently offering.

How is equity funding beneficial?

Animond is an equity fund. Investors benefit from providing project finance, as they are one of the first people to get paid after the animation is released and it starts to earn money. After the deferrals and debts are paid off, the money earned by the film or series will be split between the financiers and the production companies involved in a predetermined percentage.

How can you become an investor?

It is not hard to join the many film/series investors and film financing companies. The process starts by approaching film and series financing companies like Animond. You can start researching the films listed on Animond portfolio that are looking for additional finance from the investors. You should take your time to research details about the productions that you may want to invest in. This allows you to make better decisions about your film finance investments. Once you have selected the project or a number of projects that you want to invest in, you can contact Animond about the investment you want to make or do it directly through our website. A background check will be done before the funds are forwarded to a production company.

Active projects

Ruben and the parrot

Project by Stevan Mitrovic
What if the defeaning noise is coming from the inside?
This project is non-commercial, which means that financial rewards are not guaranteed.
funded of €62,000.00
Invest now

I am Akiko

Project by Damir Romanov
Discover the magic of school rebellion through the eyes of an unusual girl!
This project is non-commercial, which means that financial rewards are not guaranteed.
funded of €72,500.00
Invest now

Child in me

Project by Andjela Jokovic

Will a grumpy old woman rediscover the beauty of the mundane?

This project is non-commercial, which means that financial rewards are not guaranteed.
funded of €46,271.00
Invest now

Successful Projects

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