New firm Media Ventures Capital drawn to Manitoba film financing by tax credits potential
Media Ventures Capital Inc. recently began its hunt for investors. The fledgling corporation aims to fund films shot in Manitoba for Lionsgate, Netflix and other Hollywood notables.
'Winnipeg is … a great place to shoot,' said Byron A. Martin, a Toronto-based film producer with titles including American Pie sequels under his belt.
MIKAELA MACKENZIE / FREE PRESS FILES
American actor Bob Odenkirk works during a scene on the Nobody 2 film set at Winnipeg Beach last year. Nobody 2 is scheduled for North American release in August.
He said he's created several films in Manitoba. Now, he's hoping to produce movies Media Ventures Capital finances.
He and another producer have been working with Frank Szafranski, Media Ventures chief executive (and the producers' friend), to build the company over the past year. The crew researched financial incentives for the film industry across Canada; tax credits drew them to Manitoba.
Media Ventures plans to stack various provincial and federal tax credits; its leadership believes the structure will cover film production costs. It's an easy way to guarantee investors get full returns on their money, the founders relayed.
'I think it's brilliant,' Szafranski said. 'A sophisticated investor — someone who has the ability to put in a half-million dollars — they can see that their money is protected and has potential to do a lot better.'
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Szafranski moved to Manitoba after selling his Alberta business, Grande Prairie Valve and Fitting.
Manitoba's film and video production tax credit can hit 65 per cent. It's considered a competitive advantage within the local industry.
Media Ventures Capital hired KPMG to ensure it could stack tax credits in Manitoba; the Free Press reviewed a comment letter from the accounting firm.
The next step is attracting investors, per Media Ventures leadership.
The company is trying to raise $10 million. Its goal is to draw major investment by the end of the year, Szafranski said.
Supplied
Frank Szafranski, chief executive of Media Ventures Capital Inc.
'It's a bit of a chicken and egg,' he said, considering the balance between accumulating financing and committing to films. 'We're trying to do it simultaneously.'
Two Lionsgate movies are in the works. Filming will begin as soon as Media Ventures raises enough money, Martin said.
It could take a couple years for investors to see a return on their equity, Szafranski noted. The company is targeting an annual return between 12 and 20 per cent, its officials said.
Media Ventures Capital's launch time has arrived amid a trade war between Canada and the United States.
On Sunday, U.S. President Donald Trump threatened to place a 100 per cent tariff on movies produced outside the country. It's unclear how the levy — if it transpires — will affect the local film industry, Szafranski said.
'I think the industry is going to continue to grow in Manitoba regardless of what happens south of the border,' he said, adding the proposed U.S. tariff won't hurt Media Ventures financially.
Meantime, Manitoba film executives are watching news from the south 'very closely,' said Kenny Boyce, City of Winnipeg manager of film and special events.
Boyce said Tuesday he hadn't received many details about Media Ventures Capital. Often, production companies finance their projects through banks, he noted.
'Anything (that) helps take out some risk for local filmmakers or visiting filmmakers, I'm sure, will be a great asset to the community,' Boyce said.
He's anticipating 2025 to be a 'banner year' for film production in Manitoba.
RUTH BONNEVILLE / FREE PRESS FILES
Media Ventures Capital Inc. recently began its hunt for investors. The fledgling corporation aims to fund films shot in Manitoba for Lionsgate, Netflix and other Hollywood notables.
Eighty-six film and television productions shot in the province last year. The cumulative production budget neared $435 million, according to Manitoba Film & Music projections.
Lynne Skromeda, the organization's chief executive, credited the province's film and video production tax credit for growing the industry.
'It's virtually one of the best ones in North America,' she said of the credit. 'People know that.'
She hadn't heard of Media Ventures, nor could she think of a company using multiple tax credits in Manitoba for a similar purpose.
Media Ventures Capital doesn't yet have a website. It's liaising with potential investors over email (mediaventurescapital@gmail.com) and requires parties sign non-disclosure agreements before detailing its tax credit plan, officials said.
John Heimbecker, an owner in agriculture company Parrish & Heimbecker Ltd., is one of two investors so far, according to Media Ventures's founders. Heimbecker didn't respond to an interview request by print deadline.
gabrielle.piche@winnipegfreepress.com
Gabrielle Piché
Reporter
Gabrielle Piché reports on business for the Free Press . She interned at the Free Press and worked for its sister outlet, Canstar Community News , before entering the business beat in 2021. Read more about Gabrielle.
Every piece of reporting Gabrielle produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press 's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press 's history and mandate, and learn how our newsroom operates.
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