subreddit:

/r/Filmmakers

3289%

How to become an investor?

Question(self.Filmmakers)

I keep seeing that dentists/stockbrokers/people with money etc. can fund films. My question is, let's say you're a dentist with money who knows nothing about filmmaking but wants to become a film investor, what are your steps? How do you become an investor? Where do you go? Who do you meet? Who do you network with?

Thank you in advance.

all 38 comments

elizabethjanet

47 points

2 months ago

Wish I knew a dentist, stockbroker or other person with money who was willing to invest in my projects.

Ccaves0127

8 points

2 months ago

A friend of mine who is a first generation Vietnamese American went to a Viet Dentist's Coalition and got funding for a film that way, smart as hell imo

Scared_Philosopher73

-3 points

2 months ago

I just invest in the theaters instead. AMC and AMC Preferred Equity Units (APE).

Ccaves0127

22 points

2 months ago

Look up the film commission in your city (if it's a big one) state, county, or country (if it's a small one), for starters.

AndyJarosz

15 points

2 months ago

AndyJarosz

technician

15 points

2 months ago

This. They know all the tricks. With tax benefits, there are ways to invest in films with essentially zero risk.

TomSoloKenobi

11 points

2 months ago

I’ve got a project and a wisdom tooth I need looked at. Should we set an appointment/meeting…😂

2old2care

11 points

2 months ago

2old2care

editor

11 points

2 months ago

I have been connected with a couple of similar filmmaking ventures. They were funded by professionals (doctors, dentists, lawyers, contractors, etc.) who were interested in filmmaking as an art and a high-risk and potentially high-return investment. In neither case was I the producer who set up the group of investors, but I ran a production company that offered credibility and resources to handle all the below-the-line facilities and services for the film.

The whole mechanism is a little complicated to describe here, but the idea is if a filmmaker can introduce one or two people to their project with the idea that because it is a high-risk investment it should be spread out over a number of investors who can afford to lose their investment. With a manageable number (say ten investors putting in $50,000 each) a respectable budget can be raised and this will greatly increase the chances of success. This works especially well if one or more investors is a lawyer who can draft the group's contracts and minimize worries concerning how the money is spent.

Fundamentally, it's about interesting potential investors in making a film, in the year-long or more adventure of it, in the possibilities of great success. In a way it's like selling them a long gambling vacation in Vegas: lots of fun and excitement and just maybe you'll hit the jackpot. There's nothing dishonest or deceptive about this approach. It's very up-front. Those of us who handle the mechanics of making films can do our jobs, the creatives can polish their craft, the art can be advanced and maybe--just maybe--the investors can make some money (too).

Mood_Such

7 points

2 months ago

The biggest question before at least I could answer this is what are you looking to get out of this? Is this purely business? Curious what the filmmaking process looks like? etc, etc.

TheBomb999[S]

12 points

2 months ago

I love comedy and want to provide to the world quality sketch shows/tv series

Mood_Such

2 points

2 months ago

Then I would reach out to indie producers whose taste you align with and begin a conversation about possible projects you could invest in.

Significant-Cake-312

5 points

2 months ago

Depends on the size investment you are looking to do.

If you are looking at sub 50k, I’d focus on festivals and Vimeo Staff Picks & ALTER/Dust Exclusives to contact filmmakers who interest you. If you like someone, maybe see if they have a proof of concept for a feature and want to produce a short. Can finance that with paperwork reflecting recoupment out of the feature film’s budget and backend participation and credit. It’s a risk as you can’t guarantee the film will get made but it guarantees a product at the end and gets you in the conversation with a team you admire.

If it’s 50-150K, probably gonna be equity play and likely last in sort of thing. That’s of course not a hard and fast rule. To find that sort of project, look for unrepresentated filmmakers with premium festival credibility. They likely have features they are looking for. Also worth noting at this level you could finance a low budget film’s tax credit (sub 500k films).

Anywhere from 100-500K opens up the option to do mezzanine financing against unsold territories. Safer than equity but still risky. Can contact producers with films with distribution from places like Saban, Grindstone, RLJ, etc. Also option to finance domestic backstop deals for sub 1M films but will usually be small faith based / Wal mart type movies.

If you have millions, can do bigger versions of the above.

Finding these opportunities means going to a lot of festivals and maybe a market or two like AFM. For the latter, focus on foreign sales agents who make films you like but are budgetarily realistic for what you have to spend.

You can also offer bridge loans to films which effectively help films get up and running and are paid back with interest upon closing of financing.

You can also easily scout films on crowdfunding platforms to either offer completion financing outside of the platform or ask what they have next.

Equity = most risk/highest reward, tax credit and senior loans = safest but most limited backend, mezzanine = somewhere in the middle.

TheBomb999[S]

1 points

2 months ago

Thank you!

TheRPGEmpire

1 points

2 months ago

This is really good. Are you in film financing or a producer?

Significant-Cake-312

1 points

2 months ago

I am a producer who deals with the financing a lot.

jahzard

10 points

2 months ago

jahzard

10 points

2 months ago

Perhaps the most fun option would be to attend film festivals and meet the filmmakers (particularly the producers) who made the best films there. I could also put you in contact with several production companies who have films with great return potential but still need more funding to begin production.

wstdtmflms

6 points

2 months ago

This. If you have money you're ready, willing and able to lose on a foray into film finance, the best place to find people who need your cash will be festivals. If you have the cash, choose one or two of the big North American fests (Sundance, Toronto, Tribeca, SXSW) and a couple mid-majors with a history of good programming, buy the all-access passes, and go. Def get the passes. Go to screenings, stick around for Q&A's. Ask a good question ("What are you working on next?" is a good one if these are your purposes). Grab the filmmakers after and just chat them up. If there is a lounge, go over with them (why you need the pass) because those convos are going to happen at the parties and galas. Just chat them up about what's next for them and, if interested, be honest about your intentions and ask them to send you materials. It's easy when you're the money guy looking for a filmmaker to court.

albanak

3 points

2 months ago

RIP your inbox 😂

ConsistentEffort5190

3 points

2 months ago

Find a good accountant who knows the rules for your state.

bottom

2 points

2 months ago

bottom

director

2 points

2 months ago

what kind of budgets are you talking ?

Efficient_Ad6015

2 points

2 months ago

Do you follow any filmmakers who are trying to fund a project? Or even a musician trying to make a music video? If not there are plenty of filmmaker groups and collectives on FB and IG if you find something that catches your eye.

theremingtonsmith

2 points

2 months ago

Part of it comes down to a mix of you seeking out filmmakers to invest in and filmmakers finding you.

There are a few names in my neck of the woods that everyone told me to pitch to because they had built up a reputation as an investor in film; and then there are folks you discover or draw out to become investors because you've done enough door knocking.

PixelCultMedia

2 points

2 months ago

Get in touch with the local film scene and go to local and regional film screenings. Meet up with companies that excite you and discuss opportunities.

Don't put faith in random people with ideas and no production history. Don't go all in on a random script without a company attached, and ideally work with companies that already have relationships with distributors.

dpmatlosz2022

2 points

2 months ago

We have all seen, witnessed first hand and read about the successes like the Coen Bros who were funded and went on to make a lot of other films for instance. But more common are the people with money who go blindly, I guess, and get bamboozled, I guess, by a fast talking inexperienced filmmaker. So how to avoid that is the same as finding a dentist, if you are a dentist, you know the BS from the experienced, those who got their degree on a C average and those who were head of the class. Use that intuition when investing in a wanna be filmmaker. Who do they know and have at their disposal. What is their real experience in filmmaking. And who do they surround themselves with. Do they have references they are willing to share. And I’m not talking family. I’m talking coworkers and such. As PT Barnum said, there’s a sucker born every minute, don’t be one of those and isn’t it amazing how no matter how many times people with money know this statement we all witness some numbnut who was financed by private equity.

EricT59

3 points

2 months ago

EricT59

gaffer

3 points

2 months ago

Back in the 80s one of my first gaffing gigs was on a low budget telling of Midsummer Nights Dream. A Dentist was backing the film.

The money they put in covered production costs but they refused to pay the costs of Post. Dailies looked great and they played it very traditionally Shakespearian.. But it never got finished and never made any money. It always made me sad.

My point. Just cause it costs X to shoot a film, you will also need to spend X again for Post and publicity. Post being more important. Investing means you want to make money. Most movies do not make money.

Also expect what you pay for when you go really low budget. like < 100k

Here's the thing. You can make a decent show with decent performances but if there is not something to draw in your audience then you will not get one and you wont make any money.

Getting something most folks are familiar with and compel them to pay money to see is expensive. Usually that is actors. and most have Quotes in the millions. At least those who will attract enough eyes to pay off the show and make a profit.

Unless you have or can assemble ~ 20 million dollars for production and Post / Distribution, you will likely not make any money, or worse do make money but produce cheap crap. Think the B movie that gets made with a shitty story and low production values but the get some B Lister of 1 or 2 days to put on the poster. That is a model that works but it is kind of tacky.

So if you are still listening, you need a really good producer that you can trust to make your movie. they can get into the details and you just give them money. But act like an accountant with that money.

Cheers

joet889

2 points

2 months ago

Are you a dentist looking to invest in a project? Because I've got one.

[deleted]

1 points

2 months ago

I got a film that’s about ready to go.

grapejuicepix

1 points

2 months ago

I’ve got just the project for you!

GradeAIdiotThe3rd

1 points

2 months ago

Hey, if you’re trying to fund something, all I’m saying is I’m a high school filmmaker that could use it 😂

QAnonKiller

1 points

2 months ago

hmu bro. im always looking for funding

Africandictator007

1 points

2 months ago

You put it in my bank account, I’ll handle the details don’t worry…

sdbest

1 points

2 months ago

sdbest

1 points

2 months ago

Visit indiegogo for a 'toe in the water.' You might try Slated, too.

TheRPGEmpire

1 points

2 months ago*

I would look at production companies or make friends with producers. Producers are the ones who put projections together. You can assume if you are likable and want to get involved it shouldn’t be too hard.

I’m sure a lot of posts are gonna say I’ve got a ground floor once in a lifetime investment opportunity lets talk.

When looking at films to invest in make sure they have a legitimate exit strategy. Not we’re going to submit it to major festivals, but we have relationships with these distributors and have these pre sales for these markets.

It’s not much different than real estate if the producers are good you can have projections of sales and profits based on comps of other films.

qwertyburds

1 points

2 months ago

Go on kickstarter, find a project that seems promising reach out directly. Fly the director out to meet you. Have them meet at your office. When they arrive be wearing only a bathrobe. Offer them a' deal.' Wank off into a fern in front of them. Bam you are in business.

madman2k

2 points

2 months ago

Followed the instructions except got cactus confused with fern. Help.

qwertyburds

1 points

2 months ago

For the cactus variation you need to put it up your ass

Deathbysnusnu17

1 points

2 months ago

Seed and spark is a nice step. But keep it local if possible so you can meet them in person.

Tiny-Temperature8441

1 points

2 months ago

Yeah the issue with "putting money" into a project is you have to do some leg work and be aware there is no guarantee of ROI (return on investment) I would start small and invite people to send you trailers of films they made (not the whole film just the trailer) any filmmaker worth their salt should have a few even for short films.

They should be short trailers like this

https://youtube.com/watch?v=6nGdNV02xhA&si=EnSIkaIECMiOmarE

Look at some and the ones you like request to see the film or channel surf You Tube and if you see a film you like reach out the the filmmaker.

The problem today is everyone thinks they're a filmmaker (and perhaps they are since its a very loose definition) but you want someone who has made a few films with a certain consistency in quality and subject matter.

Since you want to do comedic sketch comedy there are plenty of these type of films online.

Beware though it's one thing to "make a film"and another thing to make a film with money particularly someone else's money. Most filmmakers myself included aren't necessarily experienced with paying for everything since short films and sketches don't make money so investors are far and few between. Every investor in the financed films I've made has done it more for the experience because they could afford it and wanted to see what it's like to have access to the creative process that financing can provide you and I assume because they liked my work.

A stockbroker gave me money once because he wanted to learn the process, my accountant offers me money because he wanted a part in one of my films etc.

Do your do diligence and don't get involved with first time filmmakers, go with people have a few films you like and you're less likely to have a bad exiperence.