Where can you find equity investors for your next film or TV show?
Investors come in all shapes and sizes, from all walks of life. I could write an entire book just filled with crazy stories of how investors came to fund some of the projects that my colleagues and I have been involved in!
Equity investors fall into two different categories:
Investors from within the industry
Investors from outside the industry
How you approach them can vary greatly depending on their past experience of investing in productions, so make sure that you prepare and adapt your pitch for either scenario.
Investors From Within The Industry
Examples of investors from within the industry that you can contact include:
Established entertainment investors
Producers or production companies with financing
Dedicated film or TV funds
Established investors from within the industry are not hard to find. You can usually look on the IMDB or any other database and find investors via their previous credits. Even a simple internet search can produce a decent list of investors and funds who are eager to promote themselves to as many people as possible.
These established industry investors are actively looking for new projects in which to invest and new filmmakers with whom they can work. They know how to make money out of the business so they need to find new content and should be happy to hear from you.
They will often attend pitchfests or other industry events to meet filmmakers and source new projects in which to invest, so filmmakers should always be aware of these and try to participate, either online or in person.
These investors are invariably easier to approach than those with no industry experience. As they are already familiar with how the business functions, they usually don’t need to be educated on the risks of investing in a film or TV show, nor of the benefits. They will be able to make their own informed decisions based on the artistic and/or commercial merits of your project and its package.
However, bear in mind that these established investors will also be in high demand from other filmmakers, and when you are approaching them you will face a lot of competition. Everyone is looking for finance, and these established investors will be able to pick and choose from the best projects out there.
This means that, while it may be easier to convince them of the overall benefits of investing in a production, it might prove more challenging to get them to invest in yours specifically unless you have an impressive package.
These established investors are also likely to be very knowledgeable about distribution and other aspects of the industry. So, you won’t be able to rely on the glamor of the entertainment industry to convince them like you might with non-industry investors.
You’ll probably have to have some substance – including a good business plan and some numbers – to convince them that their investment will be handled responsibly and show that they have a good chance of making some money.
Investors From Outside The Industry
Literally anyone you meet could be an investor in your next project. Failing that, they may know someone – or know someone who knows someone – who would be a perfect fit.
As we discussed in our previous post, the glamor and excitement of the entertainment industry can be very enticing, and people are often fascinated by the chance of investing in a film or TV show and seeing their name in the credits. It is something that all filmmakers should use to their advantage when approaching potential investors.
Investors from outside the industry include:
People within your direct network, such as friends and family
People within your extended network, who are introductions to other people made by friends and family on your behalf
Chance encounters, either in a business setting, or at a party or another event
People from within your network are probably backing you as much as they are backing the project. When first starting out, you need people to like you and believe in you. They will often be more interested in backing your career than any specific project that you are working on.
They may also be a little less detail-oriented when it comes to studying your distribution strategy and other parts of your package. For a lot of newer investors in the industry, it is very much about investing in a dream, and then learning the details as they go.
This doesn’t mean that you can take advantage of them, or expect them to make stupid investments without any hope of making their money back. But you will find that many investors from outside the industry will be very attracted by the perks and benefits that you can offer them, which can offset some of the risk of investing in a production.
However, unlike established entertainment investors, it can be much more difficult to convince certain individuals to invest in your next film or TV show. Investments such as these do have a reputation for being risky and, although the rewards can be huge, some individuals who are unfamiliar with the industry will simply not want to try their hand at investing in production.
That’s life, and it’s the same with any business.
Because of this, you may find yourself spending a lot of time trying – and failing – to convince wealthy businesspeople to take a chance on your next project. Some might seem initially excited about the prospect but ultimately just can’t be convinced to take the plunge. Others will simply not be interested.
If this happens, try not to take it personally, or to get too dejected. When you do finally find someone that is interested in investing in a film or TV project for the first time, you will probably find that they are very enthusiastic indeed!
And sometimes, it just takes one investor to say “yes” to make all the difference.
This post has been adapted from our book HOW THE HELL… Do I Get My Film Financed: Book Three: Equity Financing by Ricky Margolis. To learn more about Equity Financing, and how to raise, invest, spend and return it, check out this book and other books in this series on film and TV financing and production by clicking here.
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