Thanks to your support, we reached our maximum goal for The Fantasy Network in under a week. That means we’re now “oversubscribed”, with more interest and support offered than our investment cap allows. Everyone at TFN is thrilled with the results of this initial raise!
We are exploring a number of different options to allow more community-based owners to join us, as soon as possible. In the meantime, we’ve opened up a waitlist. If space opens up, priority will be given to people on the list. Anyone who joins the waitlist prior to the end of our “earlybird” period will be eligible for earlybird bonus shares if we’re able to allow more community investors to join us.
With that in mind, we highly recommend you join the waitlist asap so that if space becomes available, we will be able to offer it to you first!
We successfully launched our new iOS and Android apps this week. We have many more technical milestones ahead of us as they grow into the fully integrated vision, but we’re already thrilled with the easy navigation, the ability to highlight active campaigns, project tracking, wiki access, and more. You can check them out at https://apps.apple.com/us/app/the-fantasy-network/id1370144442 and https://play.google.com/store/apps/details?id=com.thefantasynetwork&hl=en. Roku is on track to launch soon, as is our new website.
We also wanted to take this opportunity to dive a little more deeply into questions from the comments on our StartEngine page.
One potential funder asked about the financial resources of our four parent companies and what kind of raise we would need in order to pursue our goals, as well as our plans for dividends or an “exit”. They were concerned about our burn rate and long term viability.
We plan to use the capital from this raise to grow the business in four key areas: technology, marketing, distribution, and content.
Our $107,000 raise does not include salaries for our company principal officers. The principals of TFN have somewhat of a luxury of not requiring TFN to support them financially at this time. The principals feel so strongly about the Company's mission that we are willing to be compensated through sweat equity for now. This might change in the future, but our goal is to keep TFN viable and self-sustaining and keep the cost structure balanced by growth.
TFN has been designed to operate with an independent approach to growth—slow, steady, and within our means. Decades of indie filmmaking have taught us how to use available resources wisely, maximize the impact of our spending, and avoid exposure beyond our means. This raise allows us to accelerate development and growth, while keeping our core monthly operating costs within the range that our financially stable parent companies could subsidize if necessary. Our burn rate is dedicated to growth and development, rather than to increasing core expenses beyond our ability to stay in business if investment capital runs out.
With regard to the questions about exit and liquidity, TFN has no plans to exit at this time. TFN works as a business because we put the relationship between fans and creators first. We operate based on collective goodwill and a culture of mutual support from the people who are committed to incredible, original storytelling. In the event that we received a compelling offer, management would be very careful to align any exit, sale, or investment with the non-negotiable preservation of TFN's core values.
While we cannot guarantee any return on investment, we can share that our goal is to offer investors dividends once TFN achieves scale and creative sustainability. We would define creative sustainability as being able to produce content independently. We wish to financially reward investors who are supporting TFN in this offering and beyond. Within the scope and limits of relevant laws and regulations, we also hope to offer future liquidity to investors.
Our diversified revenue streams are designed to generate profits when operating at scale. As we grow we anticipate that subscription revenue will become a smaller percentage of overall revenue, with crowdfunding platform fees and original content in the middle, and distribution/licensing becoming the largest source of revenue.
Several investors asked about their perks!
As soon as we are able to withdraw funds (21 days after a campaign has been live), we request to “close” on investors and finalize any cleared investor, converting them to official investors. Once that happens, we are able to get the contact information and, we will be thrilled to begin fulfilling perks, starting with lifetime subscriptions to TFN. We expect all of this to happen within the next 3-4 weeks!! We also want to clarify that invites to owner functions are ongoing—they are not term-limited. Perks also stack: if you invested at $1000, yes, you receive the perks from lower investment levels.
Thanks again for your participation in this venture and we can't wait to share what's next!
- The Fantasy Network