Raising Money
- Thread starter pryce
- Start date
Maybe you should start with a fundraiser. That seems to be all the new rage here in New England. A lot of the more 'serious' production companies first put together either a trailer (shot separate from the film) and a press kit. Then they hold a fund raiser (sometimes red carpetish), inviting all the production or industry people in the area. This is suppose to create buzz for your film, and may entice investors to back what you are trying to create.
In my humble opinion, I think the red carpet thing at a micro-budget level is ridiculous. Some of these folks are trying desperately to create the Hollywood buzz and atmosphere, and they hold it almost more importantly than the project they want to create. It's like putting the cart before the horse.
I understand sometimes this is how the industry works...create the buzz, get investors' attention, receive a little funding...and then shoot your film. This is a slipper slope.
You can also create a strong EPK (electronic press kit), a new fandango term people love to throw around. Spread the buzz that way, and bring in investors.
It will be hard for you to procure investment without a thing to show. You at least have to show some kind of promise to the project. Just make sure it looks good...if it looks rinky-dink, they won't want to be a part of it.
I'm part of a fundraiser / red carpet event here in New England where a group of producers and directors (at indie levels) are putting together an event at a casino and spending close to 100K on the event. They have already put together trailers and posters...and have gained interest from some LA folks who are going to help fund everything if they are pleased. They are charging general admission, as well as having a VIP room with 'name' celebs (who are barely known really) hanging out and gabbing--the VIP room costs a lot more than the general admission, but anyone is allowed to buy their way in.
Do you have to spend money to make money? Sometimes I think...should you put the cart before the horse? I don't expect you should.
Renting a casino is going too far me thinks. They are trying to swim with the big fish, and maybe they are doing a decent job faking it until they make it...who knows. Now, the people here are tying to go for a budget upwards 100K, so making thier project/s seem big and important may work for them, but if you're going to shoot an indie feature for less than 20K, I wouldn't worry about stuff like that. I would ask friends and family for a little money, save your own cash, and hold a simple fundraiser to bring awareness to your project.
Hope I've helped.
In my humble opinion, I think the red carpet thing at a micro-budget level is ridiculous. Some of these folks are trying desperately to create the Hollywood buzz and atmosphere, and they hold it almost more importantly than the project they want to create. It's like putting the cart before the horse.
I understand sometimes this is how the industry works...create the buzz, get investors' attention, receive a little funding...and then shoot your film. This is a slipper slope.
You can also create a strong EPK (electronic press kit), a new fandango term people love to throw around. Spread the buzz that way, and bring in investors.
It will be hard for you to procure investment without a thing to show. You at least have to show some kind of promise to the project. Just make sure it looks good...if it looks rinky-dink, they won't want to be a part of it.
I'm part of a fundraiser / red carpet event here in New England where a group of producers and directors (at indie levels) are putting together an event at a casino and spending close to 100K on the event. They have already put together trailers and posters...and have gained interest from some LA folks who are going to help fund everything if they are pleased. They are charging general admission, as well as having a VIP room with 'name' celebs (who are barely known really) hanging out and gabbing--the VIP room costs a lot more than the general admission, but anyone is allowed to buy their way in.
Do you have to spend money to make money? Sometimes I think...should you put the cart before the horse? I don't expect you should.
Renting a casino is going too far me thinks. They are trying to swim with the big fish, and maybe they are doing a decent job faking it until they make it...who knows. Now, the people here are tying to go for a budget upwards 100K, so making thier project/s seem big and important may work for them, but if you're going to shoot an indie feature for less than 20K, I wouldn't worry about stuff like that. I would ask friends and family for a little money, save your own cash, and hold a simple fundraiser to bring awareness to your project.
Hope I've helped.
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Just keep in mind the state of the economy. People don't want to spend a bunch of money on event tickets. Be gentle. And don't rush the event...give it some promotion time.
I'm not sure what you're thinking of in terms of budget...this kind of event is good for getting a micro budget movie started...
Basically, you want to appeal to pretentious rich people.
That's how it's always made sense to me. You need to make them feel like they're contributing to something they can brag about later when you become famous.
You need to make them feel like they're getting on the ground floor of something like that.
But yeah, the economy definitely makes it tricky.
That's how it's always made sense to me. You need to make them feel like they're contributing to something they can brag about later when you become famous.
You need to make them feel like they're getting on the ground floor of something like that.
But yeah, the economy definitely makes it tricky.
If I might offer my perspective as a former Wall Street guy - Look, people buy things for different reasons. But simply put, (and this is a cliche, but meaningful to me) you network is your net worth. In other words, how many rich people do you know? How many accredited investors are on your Rolodex? Who can you call right now, and they will take your call?
Filmmaking, in my humble opinion, is like any other business. Every start up business needs funding. But unlike some of the more common models, your movie has never been made. You probably don't have a track record for getting return on investment and for many, making a feature feels like an enormous adventure.
Because of all these factors, traditional bank financing is out, as well as a public offering. But this leaves you one very common option - setting up private offering. Going this route is made more challenging if you do not have relationships with successful people.
1. Learn everything you can about business and networking.
2. Expand your network by trying to seek out wealthy people slightly beyond your circle of friends and befriending them.
3. When it comes time to make your movie, figure out how to create value in excess of the money you need. If you can't guarantee a return on investment, what else can you do?
These are my personal opinions based on my experience. So please contact a qualified attorney before you do anything slightly complicated, like asking for money. I'll end my comment with this thought:
People always do business with people they like and trust. If you want to create business, you must first focus on the relationship. Let the business follow.
Filmmaking, in my humble opinion, is like any other business. Every start up business needs funding. But unlike some of the more common models, your movie has never been made. You probably don't have a track record for getting return on investment and for many, making a feature feels like an enormous adventure.
Because of all these factors, traditional bank financing is out, as well as a public offering. But this leaves you one very common option - setting up private offering. Going this route is made more challenging if you do not have relationships with successful people.
1. Learn everything you can about business and networking.
2. Expand your network by trying to seek out wealthy people slightly beyond your circle of friends and befriending them.
3. When it comes time to make your movie, figure out how to create value in excess of the money you need. If you can't guarantee a return on investment, what else can you do?
These are my personal opinions based on my experience. So please contact a qualified attorney before you do anything slightly complicated, like asking for money. I'll end my comment with this thought:
People always do business with people they like and trust. If you want to create business, you must first focus on the relationship. Let the business follow.
Thanks, but I was looking for harder information. I have no personal experience of fund raising, my only education about the movies is the movies. So, for instance, in real life, who are the people who pay for movies, like the dentists in "The Last Shot" or the limo company in "Get Shorty?" Where do you find these people? What kind of people are they? Dentists? Limo company owners? Gangsters? Stock brokers? It's answers to these questions I'm looking for.
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The harder information is you actually have to work hard and learn how to build relationships, both inside the industry and outside. Do a web search for the term "accredited investor." It's a designation from the Securities and Exchange commission, based on a person's income. If a person makes X amount of income or has X net worth, they are considered accredited investors.
It doesn't matter what their profession is, as long as they fit this criteria. And finding accredited investors is easier than you think. Where are you from? Who is the rich person in your town? Chances are you know someone who knows someone with a lot of money.
Once you find this person, call them on the phone and set up a meeting. The name of the game is BUILD A RELATIONSHIP!!! Then later, when you have a project in the works, this relationship will come in handy. Most people hang with people of a similar social status. So more than likely, one accredited individual will likely know another.
And regarding dentists and doctors - I know this is the ongoing fallback strategy for filmmakers seeking funds. But in my opinion, it's outdated material. Tax laws and insurance costs have skyrocketed since this method was popular. And I don't think it's very effective, unless these folks are running a massive business. For the most part, these folks are individuals with a high hourly rate and lots of overhead.
Hope this helps.
It doesn't matter what their profession is, as long as they fit this criteria. And finding accredited investors is easier than you think. Where are you from? Who is the rich person in your town? Chances are you know someone who knows someone with a lot of money.
Once you find this person, call them on the phone and set up a meeting. The name of the game is BUILD A RELATIONSHIP!!! Then later, when you have a project in the works, this relationship will come in handy. Most people hang with people of a similar social status. So more than likely, one accredited individual will likely know another.
And regarding dentists and doctors - I know this is the ongoing fallback strategy for filmmakers seeking funds. But in my opinion, it's outdated material. Tax laws and insurance costs have skyrocketed since this method was popular. And I don't think it's very effective, unless these folks are running a massive business. For the most part, these folks are individuals with a high hourly rate and lots of overhead.
Hope this helps.
#1. Film Commissions do NOT fund films. A Film Commission is an entity that facilitates filmmaking coming to a region. They generally are funded by the state or city for the purpose of bringing outside money TO that area, and hence it is not in their purpose to help local filmmakers make films. Their job is really to get an outside production to spend money in that community on food, hotels, and hire (meaning PAY) local craftspeople like gaffers, grips, hair and make up, etc.
#2. To address your need, for a first time film, looking for "gifts" from a large group of individuals is not a bad way to go. Darren Arronofsky's first feature PI was funded by $100 gifts from several hundreds of people. They used the term "gift" instead of "donation" because legally there are definitions you need to be aware of. You can't call them an "investment" because of the legalities of how investing works and all the state and federal laws you might break for not having the right kind of corporation to allow the specifics of your solicitation. Then with "donations" the legal definition of that term relates to 501(C)3 Non Profit Status and the ability to deduct the donation from their taxes. A "gift" is just that. They are giving you money with no expectation of return or benefit.
So going to several hundred friends and family getting a reasonable amount of $$$ like $100-$500 per person isn't asking too much, and making them "gifts" to you is perfectly legal. In the goodness of your heart, if you see fit to give them back money if you sell your feature later for a profit, that's certainly a generous thing to do yourself, as Arronofsky did for his gifters.
- PJR
Film commissions: what you describe is the USA reality. I live in Greece. Most Greek films are funded in part by Greek Film Center. Is that not a film commission? If not, I stand corrected. I just used the term for simplicity's sake. The problem with the Greek Film Center is that while anyone can apply for funding, we all know you have to be buddies with the cashier or someone's cousin to have any realistic possibilities of getting any money.
Rich people and accredited investors: OK, this is the strategy, but what are the tactics? I could find rich people and call them up. Why would they want to meet with me? Surely I wouldn't be the first guy looking for a handout that they've encountered.
Rich people and accredited investors: OK, this is the strategy, but what are the tactics? I could find rich people and call them up. Why would they want to meet with me? Surely I wouldn't be the first guy looking for a handout that they've encountered.
Nobody backs my fundraiser idea for a first-time director trying to shoot a micro-budget picture? You all want him to get to know rich people, form a relationship, and add an investor to this roladex? That's a little silly...cart before the horse situation.
Sounds like you need to get a little previous material under your belt before you jump on legit investors...they are going to want to 'think' they will get their money back, even if they never do.
If your budget is on the 100K level...fine, hire someone who will find those investors (California has a lot of them, who fund films they find to have promise). If your budget is 20k and under...family gifts and fundraisers are the way to start.
Good luck.
Sounds like you need to get a little previous material under your belt before you jump on legit investors...they are going to want to 'think' they will get their money back, even if they never do.
If your budget is on the 100K level...fine, hire someone who will find those investors (California has a lot of them, who fund films they find to have promise). If your budget is 20k and under...family gifts and fundraisers are the way to start.
Good luck.
Before there are any misunderstandings, I just want to say that I appreciate everyone's input. So far,
M1chae1 and sonnyboo have provided ideas that can be immediately implemented, which is what I'm interested in right now, but the talk about rich investors is useful for future, bigger projects, or even securing a small amount at once instead of hunting down many people to gather the budget dollar by dollar.
M1chae1 and sonnyboo have provided ideas that can be immediately implemented, which is what I'm interested in right now, but the talk about rich investors is useful for future, bigger projects, or even securing a small amount at once instead of hunting down many people to gather the budget dollar by dollar.
Okay. Right now what you need before you can
approach investors is:
1) The format is it being shot on.
2) The entire line item budget.
3) The intended market and distribution plan.
4) The ROI you are offering.
5) The funding you have in place already.
6) The names involved in the project.
7) The bios of anyone involved in the project who
has successfully taken a film to market and produced
a profit for investors.
8) A list of existing feature credits your primary team
has -- ie writer/director/producer.
The fewer of these thing you have, the more difficult
it will be for investors to take you seriously.
Especially in Greece where the government usually finances
films. Investors are going to ask why you aren't going to
the film commission for money so be prepared to answer that
question, too.
approach investors is:
1) The format is it being shot on.
2) The entire line item budget.
3) The intended market and distribution plan.
4) The ROI you are offering.
5) The funding you have in place already.
6) The names involved in the project.
7) The bios of anyone involved in the project who
has successfully taken a film to market and produced
a profit for investors.
8) A list of existing feature credits your primary team
has -- ie writer/director/producer.
The fewer of these thing you have, the more difficult
it will be for investors to take you seriously.
Especially in Greece where the government usually finances
films. Investors are going to ask why you aren't going to
the film commission for money so be prepared to answer that
question, too.
Rik, good list, thanks. But there is a Catch 22 or chicken and egg scenario: need a distribution plan to get the movie funded, need a movie before you talk with the distributors.
I'm not comparing myself with stars, I'm just bringing this up for faster understanding: imagine if Kevin Smith asked Miramax if they'd distribute a film like "Clerks" instead of shooting it first and screening it for them. I know there are a bunch of other parameters to his eventual success, let's not go into that, I just want to make the point that for a first effort, it's better to make the film first. And because I tried the no money way and it didn't work, I see that even for a kind of sample project to display your abilities, you need some money. Hence the questions about finding investors.
I'm not comparing myself with stars, I'm just bringing this up for faster understanding: imagine if Kevin Smith asked Miramax if they'd distribute a film like "Clerks" instead of shooting it first and screening it for them. I know there are a bunch of other parameters to his eventual success, let's not go into that, I just want to make the point that for a first effort, it's better to make the film first. And because I tried the no money way and it didn't work, I see that even for a kind of sample project to display your abilities, you need some money. Hence the questions about finding investors.
Director has some good points.
To clarify, I'm not sure how business works in other countries. Everywhere has different laws. And my experienced is based in the United States.
Regarding my earlier suggestions - I've always thought of building relationships as a long term career play, not an immediate pay off. As for building relationships with successful people, yes - I'm talking about finding someone in your network who knows someone and then becoming friends with that person. Immediate tactics:
1. Find friends who know rich people.
2. Write down names of at least 5 rich people.
3. Call rich people and set up a meeting.
4. Ask for advice on how to become successful.
5. If you hit it off, you'll begin to build a life long relationship.
If this doesn't sound comfortable, then I suggest spending a summer selling something. If you can learn to sell, you can learn to get meetings and build profitable relationships.
To clarify, I'm not sure how business works in other countries. Everywhere has different laws. And my experienced is based in the United States.
Regarding my earlier suggestions - I've always thought of building relationships as a long term career play, not an immediate pay off. As for building relationships with successful people, yes - I'm talking about finding someone in your network who knows someone and then becoming friends with that person. Immediate tactics:
1. Find friends who know rich people.
2. Write down names of at least 5 rich people.
3. Call rich people and set up a meeting.
4. Ask for advice on how to become successful.
5. If you hit it off, you'll begin to build a life long relationship.
If this doesn't sound comfortable, then I suggest spending a summer selling something. If you can learn to sell, you can learn to get meetings and build profitable relationships.
You're right, pryce.
When you are looking for investors you need to present an
investment package. Investors are looking for ways to invest
- that means they will look for a filmmaker with a track record.
Which is what you asked, right? "OK, this is the strategy, but
what are the tactics?"
If you are looking for donations then the tactics are different.
Since in that case you are asking people to "invest" because they
believe in you and want to help - not for financial return - you
have to make this very personal. Don’t make promises about getting
into festivals - though do you research and tell them about the
festivals you plan to enter and how much that’s going to cost.
Don’t try to dazzle them with how much money your movie is going
to make unless you can back it up with facts. Sell yourself as as
an up and coming, dedicated movie maker.
This doesn't work too well with people who don't know you.
