17 March 2000 - 18 April 2000
re: financing
John Cones
5:23 pm friday march 17, 2000
Mike:
Yes, you are not considering the fact that professionals in the business of funding startup or early stage ventures have for many years considered the financing of individual film projects much too risky for their money. Venture capital firms do not generally get involved in first stage financing, nor do they generally get involved in project financing. They prefer, instead to put their money into corporate structures (i.e., companies organized as corporations and that intend to be engaged in some ongoing business for a considerable length of time). A single feature film project does not fit their need, for example, of being able to sell their shares of stock in a private placement offering or a subsequent IPO (part of their exit strategy). So, it is rare indeed, to find experienced venture capitalists who are interested in putting money into the production of a single feature film project. The investors in such projects are typically family and friends or others that you and your upper level management know and who have other motives for investing in a film project in addition to the possibility of making money.
John
re: Boilerplate on the web
John Cones
5:28 pm friday march 17, 2000
Phil:
I am not currently aware of such sites. You might check around at the SEC's site, but keep in mind those are for public offerings, not private placements. My book "Film Industry Contracts" has a sample LP agreement and associated subscription agreement in it and it's available on diskette. I hope you are or have an attorney helping you. What are you doing about your SEC and state notice filing requirements? Do you have the required state legends and purchasers representations included in your disclosure document? What about financial projections?
John
Latin America
Stefan Kaspar
11:54 am sunday march 19, 2000
I am a producer/distributor working in Lima, Peru, South America. I have several independant projects on a low cost level. We film digital and make the transfer to 35mm. Do you know who could be interested in latinamerican projects in the United States?
Stefan Kaspar
Casablanca Production & Distribution
Lima, Peru
e-mail: postmast@films.com.pe
re: Latin America
John Cones
7:45 pm sunday march 19, 2000
Stefan:
No, but here's a brief list of some people in the industry I know, who, in turn may have the information you need:
Attorney Dinah Perez (LA) 310/553-1155
Attorney Michael Morales (LA)310/271-5123
Attorney Michael Rivera (LA) 323/469-0100
John
Completion financing
Danny
1:04 am monday march 20, 2000
I am currently producing a feature length film that is in the advance stages of pre-production. The film has a completed itemized budget, accurate shooting schedule, most of the cast, and enough independent financing to nearly put the project in the can. However, this being my first feature length production, I have some questions regarding investors who fund projects while they are already in production. I have heard that many people will sign on once they see some footage, to help get the film completed. Is this accurate information? Or is it easier to get funding of projects in the earlier stages of production? Our over-all budget is under $1,000,000, if that info helps?
Thanks,
Danny
re: Completion financing
John Cones
8:35 am monday march 20, 2000
Danny:
In my experience, I have come across independent feature film producers who feel that shooting a scene or two to show to prospective investors prior to raising all of the production funds is an effective tool for raising money. So is showing a sample reel of your earlier work as a filmmaker if it exists. It would most likely be even more effective to screen an earlier completed film. The industry is based on this concept (i.e., the presumption that if you've done something once, or at least shot something that looks good, you will be able to do it again). Of course, the presumption is not true. Your next film (or next scene) may or may not work. So, it is probably true, that showing a trailer or scene to prospective investors may help to persuade some of them to invest. "Many" is doubtful. Only a small percentage of people generally are willing to invest in independent film. It is extremely difficult to make a judgment about which funding raising method is "easier", since it is never easy to raise money for feature films from investors. One problem with raising part of the money, shooting some footage and then hoping to raise more to finish the film, is that the early investor money is at greater risk. You've added the risk that you might not be able to raise the completion funds and that risk needs to be disclosed in your offering memorandum. From an investor's point of view, it is less risky to invest in the first place, if the investor knows you have raised as much money as you need to complete the film and market it to distributors before you start spending investor money.
John
financing
Mike D.
9:19 pm monday march 20, 2000
I contacted you earlier about venture capital type funding of films. Thank-you for your reply.
I was actually talking about starting this type of fund and not approaching current venture capital operations. The concept would be similar to a venture capital operation in that you would raise a pool of money from investors who would want to put a small portion of their portfolios in a high risk, potentially high return, investment. The fund would then purchase/finance several projects a year. Like a venture capital fund, some of these would lose, some break even, and hopefully one or two could provide the big pay-off. Even something only fractionally as successful as a Blair Witch would be a good return on some 3-5 million dollar investments. Assuming you make a film of reasonably good quality (I know thats a sweeping statement, quality is very subjective, but please bear with the hypothetical), given the large number of outlets today, cable, video, foreign, etc, can you be assured of getting some return on your investment? Or are there lots of finished feature films in the can that never get sold to anything and never make a nickel?
I look forward to your reply. This is a good site. I haven't found many sites discussing hard business issues in what is principally an artistic business.
re: financing
John Cones
9:44 am tuesday march 21, 2000
Mike D:
Thanks for writing back and clarifying your intentions. Unfortunately, the news is not much better for a proposed venture capital fund. Even though it would be great for independent filmmakers to have such a fund, and you would certainly have lots of projects from which to choose, these factors still do not change the incredibly poor odds of being able to pick a winner from time to time to balance out the non-performing projects. Even if you do pick a winning picture, there is no certainty that the distributor will allow a fair or negotiated share to flow back to the venture capital fund. If you want to get a better handle on how much discretion distributors typically have pursuant to the terms of the distribution agreements they offer, see my book "The Feature Film Distribution Deal" published by Southern Illinois University Press.
As you have indicated, it is a good idea to spread your risk amongst a number of film projects, but as you further indicate, it would be an even better idea to spread your risk amongst other type investments.
John Cones
Foreign Financing
Peter Hupalo
3:22 pm thursday march 23, 2000
Hi,
Suppose you have a film that will largely be shot in another country.
What do you think of foreign financing in that you sell the rights to distribute the film in non-U.S. market territories to help finance the film.
Any special things to be wary of in this sort of deal?
Finally, suppose you shoot a film without having any distribution guarantee lined up in the U.S. If it is a good film but with out "big name" stars, what are the chances it will get decent distribution in U.S.?
Thank you very much for your time.
Peter Hupalo
THE VALUE OF A BUDGET
Gregg
3:50 pm friday march 24, 2000
John:
My project has been evaluated by some top line production execs (they evaluated it at $8-12 million below the line, contingent on what you attach above the line) and it's gotten exceptional coverage for an unattached project at the major agencies. It's been recommended FOR several top actresses, but the agencies won't give the script to their clients WITHOUT... an offer. And to make an offer, one must have at least partial funding.
I'm considering the wisdom of investing in a budget and a business plan as part of seeking investor support to break out of this "catch-22".
Do you have an opinion on the actual value of these documents, separately or together, when approaching investors?
Thanks for your feedback.
THE VALUE OF A BUDGET
Gregg
3:50 pm friday march 24, 2000
John:
My project has been evaluated by some top line production execs (they evaluated it at $8-12 million below the line, contingent on what you attach above the line) and it's gotten exceptional coverage for an unattached project at the major agencies. It's been recommended FOR several top actresses, but the agencies won't give the script to their clients WITHOUT... an offer. And to make an offer, one must have at least partial funding.
I'm considering the wisdom of investing in a budget and a business plan as part of seeking investor support to break out of this "catch-22".
Do you have an opinion on the actual value of these documents, separately or together, when approaching investors?
Thanks for your feedback.
re: Foreign Financing
John Cones
9:24 am monday march 27, 2000
Peter:
Thanks for writing, but I must remind you that these are not investor financing questions,which is the purpose of this site. The question you ask are discussed to some extent in my book "43 Ways to Finance Your Feature Film".
Best wishes,
John Cones
re: THE VALUE OF A BUDGET
John Cones
9:33 am monday march 27, 2000
Greg:
One of the ways independent producers sometimes avoid this classic "catch-22" is to conduct a securities private placement LLC or LP offering (not a business plan) raising money from a large group of passive investors for purposes of using the money to obtain firm commitments from recognizable actors, actresses and/or a director (with a non-refundable deposit, that is, just a percentage of their full compensation, not a full pay-or-play deal). In order to get some idea what kind of money you will need to get those commitments, you should be talking to casting directors, the people who are in the business of regularly negotiating with talent representation. I don't think a business plan is going to do you much good in your situation, unless you think you can raise the amount of money needed from one or two active investors. Yes, such "development/packaging" deals are risky for investors, but so is a production money investor financed offering. At least the development/packaging deal offers the investors the opportunity to exit fairly quickly.
John Cones
Film Finacing
Sean
6:35 pm monday march 27, 2000
My partner and I, both of whom have studio backgrounds, have recently formed a small indie production company. We have one project that is in final script development stages. We have a known director attached, and are working on talent attachments.
The budget is in the 3 million range. We have no investment money as of now, but we may have two outside investors interested in coming in at the 500,000 to one million mark. (We do have an investor package by the way.)
What is the best way to work with outside investors (non-industry), and have them feel secure with their investment? We have not dealt with this large of an amount before on our own, but are very familiar with much larger studio budgets...
Any insight would be fantastic. Thank you.
re: Film Finacing
John Cones
9:03 am tuesday march 28, 2000
Sean:
Without seeing your so-called "investor package" and knowing whether it is a producer's package, a business plan, a private placement offering memorandum or a prospectus (all of which are different and used for different purposes), I cannot know what you have done so far to provide some level of assurance to your investors. By the way, making "them feel secure" may be an impossibility, not because of anything you may or may not be able to do, but because of the long history of poor results for investors in the film industry.
In any case, you will want to put together a team of individuals who, at least on paper, have the kind of backgrounds that provide some assurance to your investors that they will be able to produce a quality film when funded. You will want to provide a synopsis of the script and some analysis of why this film (in your opinion) is likely to be well received by its target audience. Also, define that audience. Provide your anticipated MPAA rating, production information like how many weeks in pre- production, principal photography and post-production. Discuss your planned locations. Discuss the ownership rights to the screenplay and how those will be transferred to the investment vehicle once funded. Explain when the investment vehicle will be organized. You may want to obtain letters of intent/interest from your director and top talent (recognizing that such letters are not likely to be firm commitments). You may also want to obtain letters of intent/interest from one or more prospective distributors who are familiar with your project and who may be willing to express their interest in distributing, or taking a second look at the project after it is completed. You will probably want to provide selected box office comparables for films of a similar genre and budget (include both good performers and poor performers). You will want to provide some credible financial projections based on reasonable and written assumptions. Assuming, these investors will be passive investors and therefore the interests in whatever investment vehicle you have chosen are securities, you must provide a thorough discussion of the risk factors involved. These will not make the investors more secure, but will let them know that you understand your legal obligations and have properly met them. You will have to choose the specific investment vehicle (limited partnership, corporation or limited liability company), determine the amount of money you need (including offering expenses) and establish the unit size and minimum investment requirement. If, as you say, these investors are from outside the film industry you will have to provide them with a "Film Industry Overview". You will have to provide them with an "Estimated Use of Proceeds" (i.e., a summary of how you intend to use their money). This is similar to your budget topsheet, plus an explanation of how much money will be used to cover offering expenses. At this funding level, it may be necessary to provide them with a tax discussion and tax opinion. You will want to provide them with a subscription agreement for them to sign and complete. You will want to set up a segregated, interest-bearing interest account to hold their funds until you reach the offering minimum. You will want to promise to pay them interest on those funds regardless of whether the production goes forward or not. Disclose to the investors where there is any litigation pending that may involve the investment vehicle or its owners. Disclose all compensation to be paid to the managers and owners of the investment vehicle and at what stage. Discuss your plan for deferments. Include a discussion of how you plan to market the investment units to prospective investors.
These are some of the things we normally include in an investor disclosure document, and all of them provide some level of assurance to the investors, at least reassuring them that you know what you are doing when it comes to investor financing of a film project.
John Cones
re: Film Finacing
Sean
5:56 pm tuesday march 28, 2000
John,
Thank you for your informative response. To clarify, it is a "Producer's Package" we have put together. Some revisions or additions might be in order now. Once we complete the revised document, perhaps we could send it to you.
industry trends
steve
12:04 pm wednesday march 29, 2000
what is a good way to research industry investment trends? do you know of any websites that would have info on returns to an investor? Budget versus domestic returns, net profits, international returns.
I basically need to get an idea of what an investor would expect to get back on a decent film investment.
re: industry trends
John Cones
8:58 am thursday march 30, 2000
Steve:
I don't think you'll find any websites or other sources of information relating to "returns to investors" particularly if you are talking about investment in a single, independnetly produced feature film. There is just no organization that exists for that purpose (i.e., no independent producer association), and the academic community does not offer that sort of research. Even if someone wanted to conduct that research, it would be very difficult to track down the producers of hundreds of feature films and expect them to provide reliable information about such returns, even if they had calculated them. Some of the best available information about domestic and international box office grosses exists online at the following sites (some of which are proprietary):
www.boxofficeguru.com/intl.htm
www.the-movie-times.com/thrsdir/top100world.html
www.entdata.com
If you assume a reasonable worldwide gross for the film, assume that about 50% or so gets back to the distributor from exhibitors and other end users, deduct about 33% for the distributor's fees, assume another reasonable deduction for the distributor's expenses, then assume that a certain negotiated percentage of those net profits (or net proceeds) are divided with the film production entity, that the entity itself deducts ongoing maintenance expenses and financing from other sources, calculate investor recoupment based on the deal the investor has with the production entity, subtract deferments, if any (and assuming deferments are deducted at this stage), then calculate the remaining revenue sharing ratio as between the investor group and the management/producer group, then divide that pool of money on a pro rata basis among the individual investors and do this for several different worldwide gross performance levels, you might develop a pretty good feel for what a film might return to an indvidual investor.
John Cones
FEATURE FILM 85% COMPLETE- Need Completi
Reflection Films Inc
9:49 am thursday march 30, 2000
Reflection Films Inc. is currently seeking completion funds for our feature length indie,"Harlem's Beauty". It is a story of love, friendship, and betrayal between three teens in Harlem, New York. We currently have 85% of production completed. We offer a generous 15% finders fee to any individual who assists us in securing investments.
Could anyone point me in the the right direction? Serious referrals? Contacts?
For more info. on our Company or projects, please visit our website at:
www.reflection-films.bigstep.com
or call:
1-888-570-4843
Love, Life and Progress.........
Chris Morton
Production Partner
kamilyun99@yahoo.com
re: Aspiring movie investor
Reflection Films Inc
9:55 am thursday march 30, 2000
Tony:
Read your request to Mr. Cones. Perhaps you'll be interested in the info below:
Reflection Films Inc. is currently seeking completion funds for our feature length indie,"Harlem's Beauty". One unit (1%) in the film costs %2400. It is a story of love, friendship, and betrayal between three teens in Harlem, New York. We currently have 85% of production completed. We offer a generous 15% finders fee to any individual who assists us in securing investments.
For more info. on our Company or projects, please visit our website at:
www.reflection-films.bigstep.com
or call:
1-888-570-4843
Love, Life and Progress.........
Chris Morton
Production Partner
kamilyun99@yahoo.com
re: FEATURE FILM 85% COMPLETE- Need Comp
John Cones
3:35 pm thursday march 30, 2000
Chris:
Why don't you try Surview.com. Also, be careful that you bring this last investor in as an active investor, or you may have problems with securities regulatory authorties for paying transaction-related remuneration to persons not licensed as securities broker/dealers or registered representatives. That's not allowed in private placement securities offerings.
John Cones
Writer/distribution pitfalls
Vic Kakavas
4:20 pm thursday march 30, 2000
What's the best deal for a writer when working with independents? Do I take a fee upfront, or do I hold out for some form of distribution deal? If so, what kind of deal?
re: Classified Ads
Anthony Stephens
6:41 pm thursday march 30, 2000
:Classified ads can only be legitimately used to solicit investor :funds if you are seeking a very small number of active investors, :or if you are conducting a public/registered offering. In any :case, I'm not aware of much success using this approach. There :are several sites on the Internet that allow you (for a fee) to :list your offering (even a private placement offering) and then :the site allows their pre-screened accredited investors to review :it.
I am aware that this would be OK in the case of the investor being a General Partner. I'm wondering if it would still be OK if the investor were a member of a member-managed LLC (i.e., still active in the business, but protected from full liability by the insulation of the LLC)?
I had this exact problem about 2 years ago - the investor didn't want the exposure of being a GP...
re: Writer/distribution pitfalls
John Cones
8:17 am friday march 31, 2000
Vic:
Your question does not directly relate to investor financing, but assuming your independent producer was being financed by investors, you have to balance the need to raise investor financing of the production cost against the odds of getting distribution and a revenue stream returning from the distributor from which to pay deferments. It is not uncommon for writers, directors, actors, actresses and producers to defer some or all of their compensation on such projects, to be paid following investor recoupment. After all the project would (in many cases) never be produced without the investor money, and paying the deferments before investor recoupment or out of the film's production budget would tend to make it more difficult or impossible to raise the money from investors. On the other hand, we all have to be aware that the odds of completing a quality film that is picked up by a distributor and released with favorable financial results, thereby reaching those post investor recoupment deferments is a long shot at best. With that in mind, it is probably wise to attempt to obtain a reduced portion of your compensation up front and defer whatever is necessary in order to help make the deal attractive to investors. It is a judgment call on the part of all of the potential creative deferees. Other factors may and usually are involved. For example, if it's your first script and your first opportunity to get a screenplay produced, that might also argue for letting the project go forward on a deferred basis. Your own financial circumstances would also be a factor.
John Cones
Finders fee
Vincent
4:39 pm friday march 31, 2000
I would like to know what the industry standard is for finding an investor to contribute money to a film project. And how should that be handled.
re: Finders fee
John Cones
9:45 pm friday march 31, 2000
Vincent:
No regulatory authority has jurisdiction over the fees charged by finders, thus it would not be accurate to suggest that there is an industry standard. However, you do see sliding fee scales from time to time ranging from 3% to 6% depending on the amount of money raised, usually, the more money being raised, the lower the percentage. Keep in mind however, that finders are generally prohibited from receiving transaction-related remuneration (a percentage of the money raised) in securities offerings. As a general rule, finders fees are ok for non-securities fund raising (active investor solicitations), but not passive investor (securities offerings). On the other hand, there is a way to compensate executive producers who raise money for a feature film offered as in a privately placed securities offering, but there is a set of rules (the issuer sales rules) that must be complied with. Also, note that licensed securities broker/dealer firms will generally charge up to 10.5 percent on a public/registered offering, while individual registered reps will only be paid a portion of that. Commissions paid to broker/dealers for a private placement may go higher, although some stages imposed limits (e.g., 15%) of overall offering expenses including commissions to licensed broker/dealers.
John Cones
Letters of Intent
Steve
9:56 am tuesday april 4, 2000
Is there a standard in writing a letter of intent for investors, for purposes of getting talent interest, or a director, or another investor? What should it say? Is there a sample to look at somewhe
re: Letters of Intent
John Cones
1:18 pm tuesday april 4, 2000
There are three sample letters of intent in the book "Film Industry Contracts" available at Samuel French Bookshop or online at Amazon.com or Barnes and Noble online. The three are "Letter of Intent to Acquire Literary Property", "Actor's Letter of Intent" (which can easily be modified for a director or other creative personnel) and an investor's letter of intent. The "Actor's Letter of Intent" basically says the actor has read the script and been asked to play the role of such and such, and he or she expresses his or her interest in play said role subject to the contengencies, production funding is in place, written agreement for services is executed including an agreement with respect to compensation, no other existing contractual commitments that would conflict and that the actor's participation does not conflict with any guild rules.
John Cones
Product placement
David
12:24 pm wednesday april 5, 2000
With respect to product placement as a form of financing... Is this something that may attract further investors? Should effort be made to obtain financing this way in a film? Do companies raise a substantial amount of money this way - say 100k or more.
re: Product placement
John Cones
1:32 pm wednesday april 5, 2000
David:
Anything you can do to reduce the cash amount required from investors is always helpful. So, to the extent that you can negotiate cash payments from providers of products that will appear in your film prior to production, that reduces the amount of money you will need from other sources, like investors. However, independent film producers cannot provide any assurances to providers of products that their film will ever get distribution, so it is difficult to negotiate product placements under those circumstances, or attach much value to such appearances. You may want to check with the firms in LA that specialize in product placement, but as a general rule, it is not likely that you will be able to raise a significant percentage of your budget in that manner (at least for an independent film).
John
Character Rights
Kathryn
3:19 pm wednesday april 5, 2000
I have several questions but I'll start with this one. I am working on a script that is based on a true story and I have managed to track down most of the original characters involved. Most have already signed nondisclosure agreements and are talking with me. Now, what kind of waiver or release form do I need to use a person's name and character in a film? This story is something that is on public record. It is something that was reported in news and media and has been documented in books. What are my rights here? Do I need to obtain story rights? Sorry I can't give more details, I am not comfortable discussing the nature of the script in a public forum. If someone involved in the story says "I don't want you using me in your film" can I supersede them if their involvement in the story has already been documented in print literature and media, especially if they are a crucial character to the story? I may have missed a few questions along the line also so please share your thoughts based on your experience.
Thank You, Kathryn
re: Character Rights
John Cones
3:46 pm wednesday april 5, 2000
Kathryn:
When we exchanged E-mails, I suggested that you could ask your investor financing questions at this site. It is limited to questions relating to investor financing of entertainment projects. Your questions relate to the acquisition of rights, all falling in the more general area of entertainment law. Call me at 310/477-6842 and I'll give the names and phone numbers of several entertainment attorneys in the LA area who can help you with those questions. In the meantime, if you have any questions relating to financing your film by raising money from investors, feel free to post those questions here.
John Cones
video project financing.
cliff jordan
12:33 pm monday april 10, 2000
I am putting together a serious of videos that are aimed at helping inner city teens deal with real life problems.
I need help in finding various avenues for funding for the complete 6 part series.
Any help that you can provide will be greatly appreciated.
re: video project financing.
John Cones
1:29 pm monday april 10, 2000
Cliff:
I generally work with independent producers who are seeking to raise financing for the project or projects through investor financing. If you intend to raise your financing for your videos in this manner, I may be able to help you, but for purposes of this Q&A site, you will need to ask rather specific questions. If you want to have a more general discussion, call me at 310/477- 6842.
John Cones
international trading
Jameil Player
7:39 am tuesday april 11, 2000
I know this is kind of off the topic, but I since you are a entertainment lawyer I tought maybe you can answer my question. I am a local(Richmond, VA) record label owner, and I am interested in selling my product( cassette single ) internationally. How do I go about doing this? I was told that some lawyers have like package deals for something of this nature. Is this true, and if not how do I go about accomplishing my goal?
Thank You,
Jameil Player
re: international trading
John Cones
7:47 am tuesday april 11, 2000
Jameil:
I hold myself out as a securities/entertainment attorney in the sense that I am primarily involved with securities offerings for entertainment projects. I do not have the expertise you are seeking. Why don't you call Dinah Perez at 310/553-1155. She's an entertainment attorney and does some music work. It's just a question of whether she's comfortable with the international aspect of your project. If not, she's probably in a better position than I am for referring you to the right attorney. Good luck.
John Cones
movie rights
Frank
5:04 pm sunday april 16, 2000
Hello,
I would basically like to know how it is possible to purchase movie rights from the major studios for distribution and what are the financial implications that go with it. Who are the people we should contact in each studio?
thanks in advance,
Frank
re: movie rights
John Cones
8:27 am monday april 17, 2000
Frank:
Your question is clearly outside the bounds of the topic for this site. It has nothing to do with investor financing of feature films or other entertainment projects. You need to get in touch with an entertainment attorney who deals with questions relating to movie rights (copyright law or intellectual property). You can call the Beverly Hills Bar Association for their referrals or join the IFP/West and use their listings of entertainment attorneys. Another list appears in the back of one of the issues of the Loyola Entertainment Law Journal each year.
Good luck,
John Cones
financing
anson
10:03 am tuesday april 18, 2000
For a few months now, I have been working for a friend who is a writer/director. He is a good friend and extremely talented. We have been totally unlucky on finding financing or simply selling his screenplay. Neither know any venture capitalists who may be able to help. How would you suggest we go about getting this movie made.
re: Aspiring movie investor
anson
10:09 am tuesday april 18, 2000
Tony,
I am an aspiring producer of independent films. My whole life I have been friends with talented writers. I always knew that we would work together in film. Today we are seriously trying to get a couple screenplays financed. It has been extremely difficult since neither of us know any venture capitalists. You did not say what type of movies you want to see made, but if you are seriously interested I could send a synopsis or two of my friends. He is only 27 years old and has already written 4 screenplays. In my opinion, that is quite prolific. In the past few weeks, I have convinced to stop writing and concentrate and getting his words on film. If you are interested in reading his work please contact me.
until then,
I remain,
anson avellar
re: financing
John Cones
10:52 am tuesday april 18, 2000
Anson:
If it makes you feel any better, many filmmakers spend years trying to get their film financed. First, I think you have to take a close look at your primary objectives. If this film is being created as a vehicle to allow a first time director to direct, or a writer who has not yet sold a script to get his script on the screen, and/or it is important that you maintain creative control over the project throughout its production, and it can be produced as a low budget film, then you may want to consider investor financing. If the budget requires something in the $5 to $10 million range (give or take a few million on either side), you are probably only going to have success by seeking lender financing, and that will require a package (i.e., completed script with recognizable names attached). That, in turn, generally requires some money, which you may want to raise through a so-called investor financed development/packaging offering, while looking for production-money financing from entertainment lenders, after you have obtained a distribution agreement and guarantee, along with a completion bond. If your budget is significantly higher, you probably will have to go to the studios, and that exercise should be your focus. If you do not have access to the studios, focus on finding and partnering with someone who does. Also, be willing to let go of creative control. My book "43 Ways to Finance Your Feature Film" explores the advantates and disadvantages of a number of different methods for financing your film. You might want to take a look at it. It might give you a sense of direction.
John Cones
| Film Industry Reform Movement | Books by John Cones |
| Matrixx Entertainment | Movie Publications |
| Bookstore | Professional Services | Useful Information |
| Employment | In-Development | Script Submissions |
| Script Reading | Website Development | Non-Linear Editing |
| Film Distribution | Discussion Den | Contact MEC |
| Lee Garmes Cinema Institute |
