First understand that there are basically five types of financing in the film industry. This includes: Superangels, banks that specialize in film financing, pre-sales, negative pick up deals, and studio development production deals. Each source has its own purpose and function and depending on your needs can be helpful. If we take a quick look at each type you will better understand what you options are:
.: A superangel is an investor that is able to invest large sums of money. They are considered superangels because they have the ability to invest anywhere from $500K to millions of dollars for your film.
.: Banks that specialize in the film industry are those that loan money based on the size of the studio producing the film. At times you can even find insurance companies that will also invest in film financing.
.: A pre-sale is a deal where the rights to the film are sold prior to production. The basis of the sale is the script and the cast.
.: Negative pick up deals are deals in which a studio will purchase a movie from the producer at a set time at a set date for set sum. Up until that point the producer is financing the film. In this case a bank loan can be obtained because a studio has already agreed to purchase the film.
.: The studio development production deals involve the studio owning most of the rights to your film. If you choose to go this route hire an attorney to make sure that you are protected.
With this information you at least have an idea of where to go. The next big part is how to go after the investor to secure financing. This is something that many people overlook, do not have the misconception that the investor needs you in order to make money. They are approached everyday by many different people wanting their money. You need to sell them on you and your idea.
In order to be taken seriously by any investor you will want to make sure that you have some experience in the film industry. You canít flip burgers and one day go, ďHey I am going to make a movie and you should finance me!Ē Get some experience; this will also help you present your film idea better. To attract potential investors you will want to put together a mini screening of the film a pitch film so to speak. If you donít have enough money to be able to produce one then make sure that you have a completed screen play and know who your target audience is so that you can present a solid marketing program for you film. All investors want to be able to see that they will be able to get their money back.
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