One of my new crew members has really stepped up as a Production Coordinator... Unit Production Manager... Producer.... whatever you want to call it. But he recently found us an investor that has his hands in a lot of local investments. He is willing to put forward around $8,000 dollars expecting a %50 yield in our next two films.
This at first sounds like great news, but I'm very cautious going ahead with this kind of deal. I've come up with a complete budget for the short film that is next up which ranges from $1,600 to $6,000 dollars depending on how many favors we call in, crew we pay, etc. This $8,000 would be fantastic for that, but chances are we won't make much money back on a short film around 15 minutes long.
Then there's the issue of the feature we're planning on making. I'm still in the process of figuring out a projected budget, but it's looking like it's going to cost around 3x as much as the short film if we're going to do things right. By the time we get here, this investor's money is about to run out and we're going to need to pull in more investments probably with equally expected yields.
My question is, what is your advice on investors? Is 50% a high yield on things like these? Should I completely turn this opportunity away and use crowd sourcing fundraising like I was planning on originally?
This at first sounds like great news, but I'm very cautious going ahead with this kind of deal. I've come up with a complete budget for the short film that is next up which ranges from $1,600 to $6,000 dollars depending on how many favors we call in, crew we pay, etc. This $8,000 would be fantastic for that, but chances are we won't make much money back on a short film around 15 minutes long.
Then there's the issue of the feature we're planning on making. I'm still in the process of figuring out a projected budget, but it's looking like it's going to cost around 3x as much as the short film if we're going to do things right. By the time we get here, this investor's money is about to run out and we're going to need to pull in more investments probably with equally expected yields.
My question is, what is your advice on investors? Is 50% a high yield on things like these? Should I completely turn this opportunity away and use crowd sourcing fundraising like I was planning on originally?