As demand for premium Spanish-language content continues to outrun supply, Chile’s Screen Capital
is launching a $20 million venture capital fund targeting principally TV series and movies with part streaming platform distribution.
This will be Chile’s first private investment fund specializing in the audiovisual and entertainment sector, and is looking in principle to focus on productions from the Spanish-speaking world. The fund, Screen Capital
, will launch in March.
Based out of Santiago de Chile, with additional members and collaborators in Argentina, the U.S. and the Dominican Republic, Screen Capital investments will average around $2 million per title. The fund intends to either co-produce, invest, or offer credit lines to productions.
As reported by Variety
, Screen Capital launches as Latin American and Spanish producers face broadly two business models. One is “work-for-hire for platforms in an international environment, where they buy all rights and fund 100% of production costs”. The second- “co-production- is when production companies work as studios, and source co-funding in other countries from other channels, networks and local operators, where no one owns 100% of the IP and platforms buys a stake in shows.
“Our rationale is that there is an escalating demand for customized regional projects, from established and new platforms, which are looking for ever more content in Spanish with a local flavor, but producers do not more flexible tools allowing them to take advantage of this demand,” Zylberberg said.
In Latin America, streaming platforms often part-finance against select territory rights. OTT players also pay after two-to-three years, Zylberberg told Variety
. By employing flexible business models, Screen Capital is able to pick up some of this slack, via gap-financing on co-producing from an initial stage of a project or by putting up a minimum guarantee against distribution rights.
reports that its first $20 million of financing is channeled via a Screen One fund, which has now successfully completed its financing. Screen Capital is now working to raise further private investment, backed by Corfo.
“Screen Capital combines the world of audiovisual industries with the model, scale and diversification of venture capital. If we add to this a team and expert partners and smart money, it’s a very good mix,” Emden stated.