A Beginner's Roadmap to Raising Private Finance
Usually, no.
If you are primarily a writer, your first useful relationship is more likely to be with a producer who knows how films at your budget level are financed.
An investor is unlikely to ask only whether the screenplay is good. They may ask: How much does the film cost? Who owns the rights? Who is producing it? What other finance is attached? How will I get my money back? Who will sell the film?
If those answers do not yet exist, you are probably too early for private investment.
Look at films similar to yours in genre, budget and scale. Find out who produced them. Search national film bodies, regional film agencies, producer associations, markets and industry databases. You are looking for someone who has actually moved a film from screenplay to financing and production.
You do not need a 100-page investment dossier. You do need enough information to answer sensible questions confidently.
At minimum, prepare:
Search specifically for film finance lawyer, entertainment solicitor, private film investment or the equivalent in your country. General corporate experience is useful, but private film financing has its own contracts, rights issues and commercial practices.
Ask prospective lawyers three questions before appointing them:
Also ask for a written estimate of fees.
There is no useful universal price because a straightforward domestic investment is very different from a multi-country raise involving several investors. Ask whether the work can be quoted as a fixed fee or capped fee and what would cause additional charges.
Keep the first approach simple.
"I am producing a €1.5 million feature. We currently have €900,000 from other sources and are seeking €600,000 in private finance. I thought the project might be relevant to you. May I send you the film and finance information?"
You are opening a conversation. You are not promising a return.
Avoid claims such as "you will double your money", "Netflix will buy this" or "there is virtually no risk". Unless something is contractually secured, describe it for what it is: an estimate, discussion, target or possibility.
A serious investor will usually respect caution more than extravagant forecasting.
Introductions often come through producers, executive producers, lawyers, accountants, entrepreneurs, business networks, family offices and existing investors.
Then there are people who describe themselves as financiers, introducers, brokers or fundraisers.
Before appointing one, ask:
The final question matters particularly when someone wants a percentage of money raised.
In the US, receiving payment linked to completed investment transactions can be one indication that someone is carrying on broker activity requiring registration.
Do not assume you can.
In the UK, an invitation to invest may amount to a financial promotion. That can include websites, emails and social media. There are exemptions for certain professional, high-net-worth and sophisticated investors, but conditions apply.
In the US, Rule 506(b) does not permit general public solicitation. Rule 506(c) permits broader promotion, but everyone who invests must be an accredited investor and their status must be reasonably verified.
Across the EU, investment and lending crowdfunding can fall under the European Crowdfunding Service Provider regime. Authorised providers can operate under common EU rules; covered offers are limited to €5 million per project owner over 12 months.
Before posting 'Invest in my film' publicly, ask your lawyer whether you are allowed to make that particular offer in that particular way.
Be particularly cautious when somebody wants:
Also read the investor agreement carefully.
If an investor is receiving a share of "profits", ask exactly how profit is calculated. Which expenses come out first? Who is repaid before them? Are distribution fees deducted? Is interest charged? Does the investor receive approval over casting, budget, sale or final cut?
Later than many first-time filmmakers think.
Private investors become much easier to approach when you can say:
"The film costs €2 million. €1.3 million is already identified. We are raising the remaining €700,000. Here is the budget, finance plan, production team, rights position and proposed investor terms."
That is a very different conversation from: "I have a great screenplay and need €2 million."
Investor readiness is partly about reducing unanswered questions.
The order is roughly:
Some stages will overlap. Grants, tax incentives, broadcasters, distributors, sales agents, co-producers and private investment may all contribute to the same film.
This article provides general information rather than legal, financial or investment advice. Requirements depend on the country, the investment being offered and the people being approached.
Written by Rosalind McKenna for Solaire PitchUp.