As a seasoned Hollywood insider with decades of experience in the industry, I can’t help but feel a sense of excitement and validation upon learning about Wrapbook’s recent funding round. Having witnessed the evolution of production payroll and accounting services since the days of Cast & Crew and Entertainment Partners, it’s refreshing to see a new player like Wrapbook emerge as a potential game-changer in this space.
The startup specializing in payroll and accounting for movie and television productions, known as Wrapbook, is planning to expand its influence in the Hollywood industry by acquiring additional funds.
Ali Javid and Cameron Woodward, co-founders of the company, have shared with The Hollywood Reporter that they’ve secured $20 million from Bessemer Venture Partners. They are also making an announcement about a secondary stock sale offer for their employees, allowing them to sell a part of their equity in the firm.
In simpler terms, Wrapbook recently estimated its worth to be approximately $750 million, which is lower than the $1 billion valuation it had claimed during its Series B funding round of $100 million in November 2021. This valuation adjustment was made before the current AI boom in tech-focused companies.
The firm’s application facilitates new hire processes, wage distributions, and monitoring of project payments for employees. Its creators refer to this streamlined process as a contemporary, more advanced option compared to certain competitors who might provide additional features such as residual payment handling.
Established entities like Burbank-based Cast & Crew, founded in 1976 and bought by EQT, a private equity firm, in 2018 (previously owned by Silver Lake Partners who purchased it for $700 million in 2015), and Entertainment Partners, its local competitor established in the same year and acquired by TPG Capital in 2019, are both examples of industry titans. Entertainment Partners is famous for owning Central Casting, the origin of the phrase “Straight out of Central Casting”.
Wrapbook’s co-founders view their company as making a strong entry at position three in the financial services sector for Hollywood productions. Their competitors have expanded by acquiring additional companies over time: for example, Cast & Crew bought Media Services, a provider of budget, workflow, and timecard software, in 2020 to enhance their own offerings.
According to Woodward and Javid, Wrapbook has been able to operate more efficiently, expand with potential for further growth, and avoid exploitative financial ties due to not being owned by a private equity firm. Based in New York and West Hollywood, yet functioning remotely, the company was established in 2018 with just three employees. In March 2021, it secured $27 million from investors like Michael Ovitz, Andreessen Horowitz, Equal Ventures, Uncork Capital, and received a complimentary comment from investor Jeffrey Katzenberg: “It’s high time we modernize production financial services for the 21st century.” Later that year, Wrapbook announced its $100 million Series B round, led by Tiger Global Management.
This year, the workforce has expanded to approximately 280 team members, and with fresh funding, aims to grow to around 400 employees in the future. The company reports that four undisclosed studios have recently joined its platform, and agencies such as CAA and WME are using Wrapbook to monitor payment progress for their film and TV clients.
Mary D’Onofrio, a partner at Bessemer Venture Partners, commented about their investment: “Wrapbook’s technology significantly boosts the abilities and influence of production finance teams. For quite some time now, we have been keen on investing in this opportunity, as we see its potential to revolutionize entertainment finance.
1,000 businesses in the film and TV industry have adopted Wrapbook’s product for their payroll and accounting tasks. According to Ali Javid, CEO of Wrapbook, “Our platform empowers finance executives, production accountants, and producers by acting as a boost to their capabilities. With our efficient tools and enhanced service model, these key team members can effectively manage complex procedures and make more valuable contributions towards the success of the productions.
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2024-09-24 17:54