Report: DFJ, Creative Arts Agency to raise $200m entertainment fund

Draper Fisher Jurvetson will join the ranks of private equity and venture firms dabbling in show business: the firm plans to partner with Creative Arts Agency to invest in entertainment projects.

US venture firm Draper Fisher Jurvetson plans to raise a $150 million (€102 million) to $200 million fund in partnership with Hollywood’s largest talent agency, Creative Arts Agency, according to digital media news website paidContent.org. The fund will invest in startups in the digital/entertainment sector.

Former Palomar Ventures partners Brian Garrett and Rick Smith, as well as former Intermix president Brett Brewer will also be involved with the new fund. Garrett and Smith are said to have been planning the fund before DFJ and CAA became involved.

The financial community has increasingly turned its attention to Hollywood of late. Earlier this month JP Morgan said it would set aside $200 million for the entertainment industry, and in November venture tech veteran Don Herman formed a film-focussed venture firm, Sandlot Ventures, to work with production company Red Bird Cinema on two film projects.

In July publicly listed alternative assets manager American Capital Strategies invested $100 million in the creation of Oceana Media Finance, which provides financing for independent films. Oceana’s product offerings include pre-production bridge loans, mezzanine gap loans, print and advertising financing and, to a lesser extent, equity investments.

In May, Goldman Sachs partnered with film producers Harvey and Joel Weinstein to set up a $285 million Asian Film Fund. They intend the fund to produce and market 31 films over the next six years, projects that may involve martial arts star Jackie Chan and iconic Hong Kong filmmaker Wong Kar Wai.

Just three months ago, former HBO chairman and chief executive Chris Albrecht and Forstmann Little founder Ted Forstmann said they would raise $250 million fund to target investments in media and entertainment content.