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At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Before jumping into how to find film investors, let’s cover five essential things you should know before approaching any type of investor.
Before reaching out to indie film investors, decide what kind of deal you're looking for. Are you seeking equity financing, a loan, or a tax incentive? Each option has different expectations.
Tiffany Boyle of Ramo Law PC notes:
“For equity investors, they typically expect a 20% return. A bank loan is more difficult as they are more risk-averse. They usually want to see bankable sales, such as the project being pre-sold to France for $300k with a respected distributor.”
Like anything else, if you won’t get something for nothing. Decide what you want from them, but ensure you’re giving them what they need.
“Unless you’re bringing in financing from angel investors, you’ll need a good script and typically a package with at least a director or credible actor for the budget.”
You'll need a preliminary budget to show independent film investors a clear idea of how much money your film project requires. A detailed budget will be part of your pitch deck.
“If you’re going to approach investors, you have to get near the actual budget,” says Boyle.
Three-hundred thousand to $500,000 is close, but a $3–$5 million range might be too wide for investors to wrap their heads around.
In a lower budget indie film (under $1 million), an indie film investor may not want to exercise creative control. Still, that doesn’t mean it isn’t a possibility.
Major changes to the screenplay may require the investor's approval and be explicitly stipulated in a Production Services Agreement. A film funding company may even want to approve specific cast and crew members, whether it's the director or third lead.
Some film investors may also want to be credited as a producer and a more significant back-end deal for equity.
“I have known investors wanting 75% in the gross back end,” says Boyle.
A production agreement between an investor and producer may specify that the production company is liable for over-budget expenses. This applies to overruns that are not caused by withheld approvals. It also includes last-minute changes requested by the financier.
Some agreements may stipulate that the production company can keep part of (or even all) the funds remaining after the final cut is locked to incentivize staying within the budget. The financier may want to retain the right to take over the production if the project exceeds budget or falls off schedule.
Working with film investors requires a solid team to handle accounting and payroll. This includes preparing proper financial documentation, such as K1 forms, for tax purposes.
Mismanagement in these areas could lead to surprise debts, such as unpaid residuals for SAG members.
Get excited about your project so they can feel that excitement but don’t sugar coat it. Many indie film investors don’t make their money back. Including a warning in any investment agreement isn’t just an SEC requirement. You’ll need to make this crystal clear.
Even the major studios know there’s a risk as Matt Damon discusses on Hot Ones.
“Don’t raise money from someone who would be upset if they lose that money.”
So says Dan Marvish, filmmaker and author of The Cheerful Subversive's Guide to Independent Filmmaking.
People invest in films for a variety of reasons. Passion for films and storytelling could be a driving factor, but for others, it could be more about access.
They may want to go to film festivals, be able to share with others that they go to film festivals, or any other fringe perks. Some want to fund a project because they want to gain knowledge and experience for their budding filmmaker child.
Whatever their motivation, find out this type of info so you can temper their expectations.
While there are hundreds of ways to find film investors, below are six key approaches to consider when looking for film project funding.
For better or worse, one of the fastest ways to attract and close deals is to have cast and crew ready to work on your project, including:
You may be thinking: OK, get Ryan Gosling. Then film investors seeking projects will come beat down your door—eh, easier said than done. Though, don’t underestimate the power of a heartfelt ask. A letter can go a long way as producer Anna Elizabeth James found with her film Deadly Illusions. Read all about her journey to getting her movie on Netflix.
How to find film investors can even mean reaching out to brands. Contact brands to see if they’re interested in product placement within your project that can help fund your film.
“I had a client call Dove and land a deal. Most brands don’t get those calls so you never know until you try,” notes Boyle.
Consider also reaching out to product placement consultants through the Association of Entertainment Marketing Professionals.
One way to get a lot of people interested and involved in your film at ground level is through crowdfunding sites like Kickstarter. If you’re producing a feature length film, you shouldn’t expect to get the entire project funded. Still, the amount you raise can go towards hiring a lawyer, forming an LLC for your production company, and other upfront expenses.
“It’s literally Kickstarter not Kickfinisher,” says Marvish.
And who knows—during the campaign, a friend of a friend (of a friend) may see your pitch video and want to invest.
Another way to raise money is to team up with a fiscal sponsor. In this arrangement, you work with a non-profit to arrange to receive grants through foundations, individuals, and public agencies.
That way, any contributions to your film are tax-deductible donations. Depending on an individual investor’s tax situation, this may be an attractive alternative to a traditional film investment.
“What I found is even giving people that option they may still roll the dice as an equity investment, but they at least hear about that option and know there’s no expectation of getting their money back as an investor,” says Marvish.
Writer and director Chloé Zhao won a grant for the film Songs My Brother Taught Me. With the grant in hand, she had an easier time raising the rest of the financing for the film. Bottom line: Don’t underestimate what grants can bring to the table.
For most filmmakers, this is likely a long-shot. Reason being, unless you’re intentionally creating branded content, in what world does your content align with a brand? Sure, product placement can find its way into your story, but the subject or core content of your film may not be at all relevant to that brand.
Filmmakers David Alvarado and Jason Sussberg of Structure Films thought about things a little differently when they were looking for film investors.
The subject of their documentary We Are As Gods was Stewart Brand, an iconic figure in the tech community. So they used that. Reaching out to Stripe and their subsidiary Stripe Press was a perfect fit for both the Silicon Valley-based company and the filmmakers.
IMDb Pro offers a free 30-day trial, so this next tip requires no upfront costs.
Look at the last three-year slate of films that generated buzz at film festivals. Then, hop onto IMDb Pro and review each title's associate producers, co-producers, and executive producers.
As you go through each film’s credits, look for people who you see repeatedly involved in these projects.
Beyond your existing network, one message might be the bridge to getting a film investment. Just ask filmmaker Sam Jordan Dudeck. Dudeck ran a quick search on LinkedIn based on the job titles executive producer, investor, and financier. After messaging over 50 people, he had a 25% response rate.
The first few meetings Dudeck ended up talking with executive producers who were interested but not willing to put up any money. However, he quickly learned to be clear about what he was seeking in his reach out efforts.
Then one fateful meeting set up by a LinkedIn message took place. Dudeck laid out in this meeting potential returns, why the investor should trust a seemingly random writer, and when they could make the film.
“The biggest difference was showing I had a plan in place and that I was putting in the work behind the project. Once you have the passion, you have to use that as fuel to put together the pitch deck,” says Dudeck.
With that investment, Marvish produced his film A Walk in the Park.
Now that you hopefully have a better sense of how to find film investors, let’s look at what you’ll need to prepare for the meeting.
You got the meeting. Now, like a professional gymnast, you need to nail the dismount.
“If someone is willing to take a meeting, you are halfway there. It’s a good sign,” says Dudeck.
Here are a few tips to help you as you prepare.
Think of your film pitch deck like the final round of The Great British Bake Off. Your pitch deck is where you need to instill confidence in the judges (AKA the film investors) that you are the winner.
A film pitch deck should include:
“Be prepared to answer questions like why this project now and who in the market is going to buy this? Netflix? An independent production company? That way, they know how they might recoup their investment,” says Boyle.
Work with a seasoned producer to ensure your budget makes sense. You may find an investment can actually stretch further on certain items you’ve estimated in your budget.
Inevitably the question of when investors get their money back will come up.
The answer to that question begins with the waterfall schedule put in place.
For the uninitiated, a waterfall schedule defines the order in which different parties will receive money once a movie generates revenue. This schedule is outlined in a financing agreement.
In an independent film, the first money may go out to pay union residuals, sales agent fees, and collections account manager fees, which is a third party who gets the money that comes in from your project and distributes it to everyone else.
From there, an investor may get first dibs on the remaining pool of funds up to 120% of their investment. Then the remaining amount may be split 50/50 between the investor and creatives (writer, director, and talent).
In some cases after residual, agent fees, and CAM fees are paid, a financing agreement may specify a 65/35 split between film investors and the creative talent for all the remaining funds.
On larger budget projects, a bank may demand in the waterfall schedule that they get paid before any other profit participants or salary deferments.
Then there are also potential bonuses you need to be aware of and will need to communicate with an investor on why you’re including them. For example, a high-profile actor may want a bonus or a small percentage of the revenue. The revenue from streaming channels that talent is eligible to earn will be a new requirement moving forward.
Remember, beyond the specific terms of your investment agreement, who you’ll receive money from will vary based on your specific project. For example, an independent film with a budget of $1 million to $10 million may need to work with a foreign sales agent to get a bank loan.
Be honest with any prospective film investors if you can’t meet their expectations, whether it’s a return or a Netflix top 10 film. They may not like the news, but you can still share why targeting an up-and-coming or more niche streaming channel makes sense.
As you gain more credits, entertainment lawyers and other seasoned producers can be great resources for navigating how to get funding for a movie project.
It can take a team to get your movie financed. Your lawyer, sales agent, and talent manager are not only a great resource for running by budgets and specific agreement terms, they can also be a fresh set of eyes before you send out your pitch deck to film investors.
To find film investors for free, filmmakers can use online platforms like LinkedIn, IMDb Pro (which offers a free trial), and social networks to connect with potential investors.
Crowdfunding platforms such as Kickstarter and Indiegogo also allow filmmakers to raise funds at no upfront cost. Networking at industry events, film festivals, and through personal connections can also be effective free methods.
To find film investors near you, attend local film festivals, industry events, and networking mixers where investors or potential financiers may be present.
You can also join local film organizations or groups, which often have access to regional investors interested in supporting local film projects.
Additionally, leveraging local business directories and social media platforms can help connect with investors in your area.
Newer filmmakers and producers can find investors by starting with crowdfunding platforms like Kickstarter where they can present their projects to a broad audience and build initial funding.
Networking at film festivals, joining industry organizations, and attending workshops designed for emerging filmmakers are also effective strategies. Beginners should also prepare a well-structured pitch deck and consider partnering with more experienced filmmakers to attract investors.
You’ve worked hard to write the best script possible. You’ve got a story you’re ready to tell and now it’s time to put it out into the world. But before any of that happens, you may need to find film investors.
Attracting film investors may seem like the biggest step. However, once you’re on their radar, how do you keep them interested?
This guide will get into different approaches for attracting investors, what you need to know before taking money from investors, and what you can do to crush pitch meetings. We’ll focus mostly on how to get funding for an independent film, anywhere from five to seven figures.
Let’s get into it.
A well-structured pitch deck is a crucial tool when preparing for investor meetings. Even if you don’t present it formally, our template will provide insightful talking points when discussing your project with film investors seeking projects.
