Investor Meeting - Advice?

I’m a writer/director with one indie film under my belt that got a small theatrical release, Netflix and such, with a name actor and decent reviews.

My new script is a contender with a production company that has a partnered deal to produce a few films together. The deal includes financing and distribution, and each film is roughly $2M. There are 2 films left in their deal, so I have a shot with my script, but there’s competition.

In hopes of bringing something else to the table besides my script, I reached out to a very wealthy contact I made awhile back (who made millions in digital technology industry). My pitch to him was to consider coming on as an investor, bumping the budget further, which I could present to the production company.

I let the potential investor know that the amount and terms would be completely up to him (for the sake of discussion, $100-250k wouldn’t dent this him much), but he would receive a producer credit to a film with an existing distribution deal (which is rare), name actors (the other produced films in the deal have names you all know), and an opportunity to recoup, while also having a little pull (i.e., having a friend or loved as an extra).

He’s responded, saying film isn’t really his area of expertise, but he’ll meet me for a conversation. I’m pleased it went this far, but I’m trying to gauge my approach for the meeting. I’m doing research, but as I’m not a producer, does anyone have experience to properly suggest a financial strategy that would make sense to him – considering points, percentages, safety nets, etc? Obviously there are no guarantees when investing (especially in film), but I would want to suggest terms that would be most advantageous to him as well as the production company.

Thanks in advance.

T
 
You're talking to a tech investor? You're going to have a tough time. A plus for you, they're typically not against risky investments. The downside, there's very little upside. There's no chance you're making the next unicorn or decacorn. You may need to learn the differences in financing between those two worlds to have a chance to help him bridge that gap.

I believe your best course of action with him is to leverage your experience in making a profitable film. Talk about how you earned a significant profit for you and your investors from your first film. You're a successful filmmaker (founder in his world) and you're going to do it again.
 
Bring someone with you versed in film finance. You be the creative person and pitch man, and he jumps in with numbers and potential numbers.
 
That's good advice, Indietalk, but sadly, not possible. I'm outside of Hollywood, in a smaller city where few films are made (but is seeing steady growth). There's no one locally that I can approach in that regard. My filmmaking network isn't that big in the first place (working on it), hence my query here for some advice.

BTW - this production company has shot their previous films in their deal so far in my community because of great tax credits.
 
So watch a lot of Shark Tank and know your numbers ;), or you'll be undermatched and nothing will happen.
 
Of course. I'll present honestly and fairly. As mentioned, $100-250k would not dent the fellow I'm meeting. My hope is that, should he want to be involved, the production company would see the benefit of a boosted budget (beyond the $2M average of the other films in their deal). At the same time, I don't know if an additional player would complicate the way money is distributed. Meaning, maybe it could actually complicate things for the production company and their partners...?

I don't know the answer to that, nor do I know how to suggest the investor's potential equity/ROI strategy should be structured.

I suppose my approach will be to just discuss my first film, and why I feel this one has more potential. If I can interest him on the perks mentioned in my original post (producer credit, loved ones as extras, etc), I can see what he might be willing to put in. If he's game, then I go back to the production company with his offer. If they're interested, I suppose they would present a ROI strategy that he can take or leave.

Probably all I can really do...
 
I don't know if an additional player would complicate the way money is distributed.
It'll depend on the distribution deal. Most of the time distributors don't care, their cut is taken before any investors split is calculated. On the other hand, an investor may be concerned. Their return will be diluted and the success required to turn a profit may be increased due to additional costs (increased investment).

Probably all I can really do...
Your job is to pitch why bringing on this additional investor is the right move for all involved. If you don't know, how will you successfully get these parties to agree?
 
Your job is to pitch why bringing on this additional investor is the right move for all involved. If you don't know, how will you successfully get these parties to agree?

Of course, and that's what I'm working on. Ideally, as I've written sci-fi, I would like to go higher than $2M which seems to be the average budget within the production company's limited picture deal. As my script is in competition with a few others, I felt that if I can attach an additional $100-500k on my own, that may increase their interest, while also adding to the production value. I can't speak of ROI with this potential investor, I can only pitch him on my vision, previous experiences, and the perks/possible rewards.

As I don't have much producing experience (certainly not film financing), I thought someone may have had some insight on an approach that could intriguing to both parties, but it's possible that it doesn't exist. There's also a lot of unknowns at this point. But I'm working on them.

This is a pretty insightful article I came across: http://nofilmschool.com/2013/09/producer-cassian-elwes-explains-independent-film-financing
 
In my experience your situation rests solely on personal relations.
Not business, not ROI, not lawyers and not even how good you are
at pitching. This guy has “fun money”. He will invest in YOU. He will
invest in the IDEA of being involved in a movie.

Since you are not a producer I strongly suggest you do not try to
pitch him on profits, or percentages or distribution. But you already
know that; you said so yourself even though you originally asked
for a “financial strategy that would make sense to him”. If he is
interested in having some fun with being part of a movie and not
overly concerned about losing a couple of hundred large then you
can introducing him to the prdoCo who can talk numbers with him.

I've walked this line several times. Hook the guy personally THEN
let the money people reel him in.
 
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