Investors approaching me. What to do when someone wants to invest in my film

Afolayan Dammy · January 5, 2016

I have shot quite a number of shortfilm which have gotten positive reviews from many people who watched it ranging from my picture quality to set design to other aspects of the production. However like 2 to 3 people have come around to ask me they would like to invest in my productions. I am new to the idea of "an investor wanting to invest you". I know investors want something in return and I don't want to tell them I have no idea about it works. Are there any books or materials you can direct me to read on this matter. I have tried searching online but all I keep seeing is advice on how to get investors to invest in your work. This time around, I am not the one looking for them, they are the one looking for me. I need cogent information about this before I jump blindly into this offer..... Besides I am not sure I am very ready for big projects yet, I still want to make more short films before considering something bigger although some of them have told me they want to invest in my short films as well which I consider good for me, but I don't want to jump into this without knowing much about the subject matter of "investing in film", before I have myself to blame later. Any materials? Any advice from you? What and what do I need to know? Are there books on this strictly talking about film business not just any business investmnt. Thanks

Tyler Purcell · January 5, 2016

Well, anyone wanting to invest in short films (which have little to no resale value) probably doesn't care about a return on investment, or doesn't understand how things work. So the first thing is to learn about resale value of films and then educate your potential investors.

Then, you need to read about producing and line producing.

You will need to learn about contracts and legal documents. Of course, to accept any investment you need to protect yourself, so having a business (LLC) and insurance is critical.

Finally, I highly suggest finding a seasoned producer to help guide you through this process. Books are great and they will help, but there are many steps to doing this right and if you miss one of them, you could be screwed down the road.

Adrian Sierkowski · January 5, 2016

I'd suggest a really good entertainment lawyer.

Jon Kline · January 18, 2016

If they want to be involved in short films, it's probably better to call them a "patron" than investor. The number of short films that were made at a profit could probably be counted on one hand.

Bill DiPietra · January 18, 2016

This time around, I am not the one looking for them, they are the one looking for me. I need cogent information about this before I jump blindly into this offer.....

That's wise. Vigilance is definitely called for. May I ask how they heard about your films (festivals, YouTube, Vimeo, etc.)?...