How do indies get +$200K funding?

[Justin Anderson]

I'm suffering from complete ignorance here and could really use some help...

For small indie features--say $200k - $2million, where do they get that kind of money from? How do you get to the point where you can raise that kind of a budget? What kind of people/entities funds that usually?

Because as far as I understand, that's still far too low of a budget for big studios to dabble or take interest in, yet every year film festivals are full of these indies that have $100K - $4mil budgets. How are these funded?

I'm wondering because I have a full length movie script that a lot of people who've read it really like and we're thinking about jumping on board with a production company who's gained some modest interest from studios with their past projects.
But how would one go about getting just $200K for an independent film? What to people do to make that happen?

Any help appreciated. There's some things that film school really should have prepared me for, but I guess that's where the real world has to take over.

cheers,
-J

 

[Cüneyt Kaya]

fff money

friends
family
fools
....hehe

joking aside

presales
goverment fonds
investors

you just need a solid recoupment plan and a "name" actor would make things much easier

in my experience its easier to raise 2000 000 usd then 200 usd.


bigger production value
better actors
better chances to presale

find yourself a producer...give him 5-7,5 % of the total budget....and you will see how fast he will move his ass to raise more and more money
but never forget:
if i would come to you and ask for money for my movie, when would you give it to me?
if you can answer this....you have a good chance to raise the money


or...find some drugdealers who want to play in a gangstermovie..hehe

 

[michael zaletel]

Many wealthy individuals have daughters, sons, nephews, nieces or grandchildren that are aspiring actors. If your story/theme/idea is good enough and you have the skills, experience and network required to assemble the cast/crew and produce the film for under $100k or even $200k you may be able to secure funding in exchange for the lead role.

Remember that it's often easier and more reasonable to raise $10 million than it is to raise $200,000. When you are trying to raise smaller amounts, you usually have to find a hot-button, point-of-interest or central motivation for the investor. A story about deep-sea fishing or some little-known but expensive hobby might interest a wealthy benefactor. Or, as I suggested above, if you can make their little Kacey or Joey a star for less than they could do it for themselves, that may be the ticket (so to speak).

-michael zaletel
(shooter)

 

[I Bloom]

My buddy raised $300 Gs by selling around 12 shares at $26 grand a piece for his first feature. Later he split the shares and started selling half shares to get the final funding.

Some wealthy individuals:

Make that kind of money in a day.
Are looking for some place to invest it.
Like and are fascinated by movies.
Would pay just to be associated, they don't care about the return.
Would like to be a featured extra.
and/or are looking for a way to get their crazy daughter to do something with her life and/or get off oxycontin.

So in any case the first step to raising money for a film is to setup the business end so that you can solicit investments legitimately. And then start raising capital by creating relationships with people who have that kind of money.

On the flip side, if you are wealthy, remember this rule of thumb: Never invest in someone's movie. What a terrible idea. Only thing worse is letting a movie production shoot in your house.

IBloom

 

[jpp]

There's one notorious case of a director who boasted in public that his actors paid for their parts, but he was already well established in the indie world, so that course probably isn't recommended.

Assuming you're in the U.S.:

Limited Partnerships and Limited Liability Partnerships. You sell shares to investors, who have no control over the project and no liability beyond their investment, and who typically know nothing about the movie business (otherwise, they'd never invest). Could be friends, family, associates of family, rich people you may happen to know, your dentist, your aunt's dentist, or bona fide investors.

Successful real estate investors during boom times tend to be the best bet, because they're the stupidest. Innovators and industrialists are usually too smart for film investments, unless they've got so much money it doesn't matter, or they're interested in the medium or expect to sleep with the starlet. Trust fund brats are also good prospects. The investment per person could be as little as a few hundred dollars, to tens or hundreds of thousands.

Celebrity attachments. You convince one or more stars to appear in the movie and on that basis raise money or hire an established producer who knows how to go about raising money. A genuinely famous actor, someone the average moviegoer will know, usually will bring up to $1-2 million on an indie project. Somebody lesser known will help, but the help may not be decisive. I know of two instances where the writers gave the script to the actor in a coffee shop and the film got made based strictly on those associations. So if you're in NY or LA, drink lots of espresso and carry the script at all times.

Get a short into the Sundance Film Festival, suck up to the staff and get yourself invited by Sundance to develop your feature script in their writing and directing workshops. At that point, the project may attract some producer interest, based on the association with Sundance. A number of films have gotten made this way, at 6 and 7 figure budgets, though Sundance is less help than it used to be. Of course, you need Sundance-type material if you expect to play ball.

And the old standbys:

- Rich parents.

- Get a real job and finance the project yourself.

- Credit cards.

- forget raising $200K and make movies with what resources you have to find out 1) if you really want to make movies, and 2) if you have the slightest trace of talent, creativity or cinematic intelligence. The odds are against you (and everyone) in all categories, whether you went to film school or have a Ph.D. in quantum mechanics, and it doesn't take $200K to find out.

 

[Eric S.]

"Filmmakers and Financing" by Louise Levison. Recommended to me by a former state film commissioner who's also an indy producer. Build a solid business plan and you should be able to find investors.

http://www.amazon.com/Filmmakers-Fi...=sr_1_1?ie=UTF8&s=books&qid=1239124909&sr=8-1

Eric

 

[Jaime Vallés]

There's one notorious case of a director who boasted in public that his actors paid for their parts, but he was already well established in the indie world, so that course probably isn't recommended.

Assuming you're in the U.S.:

Limited Partnerships and Limited Liability Partnerships. You sell shares to investors, who have no control over the project and no liability beyond their investment, and who typically know nothing about the movie business (otherwise, they'd never invest). Could be friends, family, associates of family, rich people you may happen to know, your dentist, your aunt's dentist, or bona fide investors.

Successful real estate investors during boom times tend to be the best bet, because they're the stupidest. Innovators and industrialists are usually too smart for film investments, unless they've got so much money it doesn't matter, or they're interested in the medium or expect to sleep with the starlet. Trust fund brats are also good prospects. The investment per person could be as little as a few hundred dollars, to tens or hundreds of thousands.

Celebrity attachments. You convince one or more stars to appear in the movie and on that basis raise money or hire an established producer who knows how to go about raising money. A genuinely famous actor, someone the average moviegoer will know, usually will bring up to $1-2 million on an indie project. Somebody lesser known will help, but the help may not be decisive. I know of two instances where the writers gave the script to the actor in a coffee shop and the film got made based strictly on those associations. So if you're in NY or LA, drink lots of espresso and carry the script at all times.

Get a short into the Sundance Film Festival, suck up to the staff and get yourself invited by Sundance to develop your feature script in their writing and directing workshops. At that point, the project may attract some producer interest, based on the association with Sundance. A number of films have gotten made this way, at 6 and 7 figure budgets, though Sundance is less help than it used to be. Of course, you need Sundance-type material if you expect to play ball.

And the old standbys:

- Rich parents.

- Get a real job and finance the project yourself.

- Credit cards.

- forget raising $200K and make movies with what resources you have to find out 1) if you really want to make movies, and 2) if you have the slightest trace of talent, creativity or cinematic intelligence. The odds are against you (and everyone) in all categories, whether you went to film school or have a Ph.D. in quantum mechanics, and it doesn't take $200K to find out.

Great post, JPP. :thumbsup::beer:

 

[Kholi Hicks]

Work for a few years and build contacts, build properties that people like, accumulate favors.

Then spend those favors at the right time. They'll equal about 200K+

I wouldnt' spend that much money on a feature, I'd listen to JPP's very last tip and just shoot. But make sure you have a halfway decent script.

 

[Kingslea Bueltel]

What the hell? I've gotta give it a shot -

I have completed script for a commercial, clever horror film. It's a sorority slasher (think 'Scream' meets 'Mean Girls') - anybody wanna pony up $1.5 M so I can make it? For all of the supporting roles, I'm hoping to cast Hooters girls and strippers - you guys can cut any sorta side deal with them you want.

Planning to shoot on RED, naturellement. PM me when you're ready to wire the money to my, um, production account. ; p

 

[Ketch Rossi]

I'm suffering from complete ignorance here and could really use some help...

For small indie features--say $200k - $2million, where do they get that kind of money from? How do you get to the point where you can raise that kind of a budget? What kind of people/entities funds that usually?

Because as far as I understand, that's still far too low of a budget for big studios to dabble or take interest in, yet every year film festivals are full of these indies that have $100K - $4mil budgets. How are these funded?

I'm wondering because I have a full length movie script that a lot of people who've read it really like and we're thinking about jumping on board with a production company who's gained some modest interest from studios with their past projects.
But how would one go about getting just $200K for an independent film? What to people do to make that happen?

Any help appreciated. There's some things that film school really should have prepared me for, but I guess that's where the real world has to take over.

cheers,
-J

Hey Justin,

I have found money easier then any one could have imagined, unfortunately some time this easy money come with way too many attachments, some times you might just be able to deal with it, others you might not, in my case as I have too much personal involvement in the project I have been rising funds for it , it gets more difficult to come to an agreement with the investors.

But I'm doing it nonetheless, and now have some funds already for my first Feature film :Rape of a Beauty".

First and most important thing is approach it as a business man, even if this is for an art film for which you are trying to get money form any one that has some to trow it away and wishes to do so with you, still there is the need for a Business plan and proper execution of Shares, with contracts to fallow.

An LLC. company is the most commonly used, I have two, once you have your company, establish the number of shares and dollar amount for each to get the total funds needed for your project.

Interest rate to be offered to this investors is in the Upwards of 25%, high risk investment has to have the promise of high return, but most often this means very little, as for a first timers like us, there is absolutely no guarantee to make any money, so to pay them back, never mind the interest or any profits.

BUt if your project is a good one, well executed, well cast, and you are relentlessly passionate about it, and don't ever stop to nothing in order to see it made, then you will find your money, one way or an other.

One requirement by law, in order to avoid any secondary issues, is that you look for money from Professional individuals and not rich individuals, as there is a very big difference from the two.

Professionals, such Real Estate agents, Brokers, Lawyers, Doctors, especially Dentist, are in such category, and more so likely to put some money in your film then others, so look close by home and start your offerings to this individuals.

As far as offering your film as an investment to Rich individual, it is also very plausible, but it will require a much in depth paper work which will protect you in case of NO profits from your film, or for that matter nNO money at all not even to refund the investment without any interest or profits.

All the above answers have much to give, and there is really not a single way to approach this that is the perfect one, as every situation and or project differs from the other, but the basics apply to all.


Good luck with it.


ciao

 

[Noah Kadner]

Friends, family and ponzi schemes if all else fails.

Noah

 

[Joyfool]

just shot a 200k ultra low budget sag flick. Some things to keep in mind:

First off - I never imagined i would pony up that kind of dough for a movie (ever). You're never supposed to spend your own money, right?....but as you'd have it, in general, movies don't make money (especially indies) and real investors don't see it as an investment as much as a favor. To get those kinds of favors you need good, rather great, contacts. In the end the only option was to work a day job for 4 years & save every dime. We shot an urban dance film in 20 days in two cities, 30 locations and 40 speaking parts. It was nuts but we did it and brought it in under budget (all on 2 RED cameras)

Was our production worth the money?

45k went to talent
60k went to crew (including preproduction)
40k went to Rentals, locations, extras
20k travel, lodging, food and misc.

O/T FOOD FOR THOUGHT:
If you're going to stretch to make your film the 2 positions you should most definitely spend on are Line Producer and First Assistant Director. These 2 jobs are critical beyond belief. If they come highly recommended than pay them what they want - they will more than recoup their salaries in savings to the production. If you use an inexperienced (just starting out) crew be ready to hemorrhage. Inexperienced crews tend to recommend their inexperienced friends so before long you can have a ton of people on set with good intentions but no foresight. Good LPs and ADs will have a slew of quality contacts for all crew positions - their jobs depend on that. In fact be wary of taking on crew recommendations that don't come from either LP/AD. Often times department heads build a little regime that starts to answer to them and not the production - things can quickly get ugly.

Your first AD will make your movie. No joke. Their only job is to make sure everyone on set is doing there job within the time alloted. Not everyone has the tools or courage for the job so don't just put a friend in the post (and never put a producer in that job). First AD's are a special breed of filmmakers who literally never take a break. If your first AD can't wait for the next setup so they can chit chat with the Second or take a cigarette break? Your screwed. He or She must constantly check in with all production heads even when they're on schedule to get status and keep the pressure up. You'd be amazed at how people relax and chill when they think they have time - before long they end up falling behind. You're First, with stopwatch in hand, is the only one who'll keep them running along.

Likewise your LP will treat money like your first AD treats time. Both positions are paramount.

to UNION or NOT?

We went with SAG talent because after going through 5000 submission of non-union people it was absolutely dreadful trying to get actors who had an inkling...we went with non-union for small parts but all our leads ended up being SAG hence the ULB contract.


Best of luck

 

[Kholi Hicks]

just shot a 200k ultra low budget sag flick. Some things to keep in mind:

First off - I never imagined i would pony up that kind of dough for a movie (ever). You're never supposed to spend your own money, right?....but as you'd have it, in general, movies don't make money (especially indies) and real investors don't see it as an investment as much as a favor. To get those kinds of favors you need good, rather great, contacts. In the end the only option was to work a day job for 4 years & save every dime. We shot an urban dance film in 20 days in two cities, 30 locations and 40 speaking parts. It was nuts but we did it and brought it in under budget (all on 2 RED cameras)

Was our production worth the money?

45k went to talent
60k went to crew (including preproduction)
40k went to Rentals, locations, extras
20k travel, lodging, food and misc.

O/T FOOD FOR THOUGHT:
If you're going to stretch to make your film the 2 positions you should most definitely spend on are Line Producer and First Assistant Director. These 2 jobs are critical beyond belief. If they come highly recommended than pay them what they want - they will more than recoup their salaries in savings to the production. If you use an inexperienced (just starting out) crew be ready to hemorrhage. Inexperienced crews tend to recommend their inexperienced friends so before long you can have a ton of people on set with good intentions but no foresight. Good LPs and ADs will have a slew of quality contacts for all crew positions - their jobs depend on that. In fact be wary of taking on crew recommendations that don't come from either LP/AD. Often times department heads build a little regime that starts to answer to them and not the production - things can quickly get ugly.

Your first AD will make your movie. No joke. Their only job is to make sure everyone on set is doing there job within the time alloted. Not everyone has the tools or courage for the job so don't just put a friend in the post (and never put a producer in that job). First AD's are a special breed of filmmakers who literally never take a break. If your first AD can't wait for the next setup so they can chit chat with the Second or take a cigarette break? Your screwed. He or She must constantly check in with all production heads even when they're on schedule to get status and keep the pressure up. You'd be amazed at how people relax and chill when they think they have time - before long they end up falling behind. You're First, with stopwatch in hand, is the only one who'll keep them running along.

Likewise your LP will treat money like your first AD treats time. Both positions are paramount.

to UNION or NOT?

We went with SAG talent because after going through 5000 submission of non-union people it was absolutely dreadful trying to get actors who had an inkling...we went with non-union for small parts but all our leads ended up being SAG hence the ULB contract.


Best of luck

Great ADvice, man. What's the ULB contract sing like? What kind of minimums are you talking for ULB?

I'm afraid of casting non-union on my project but the budget is so low I probably won't have a choice.

 

[Joel Kaye]

I'm afraid of casting non-union on my project but the budget is so low I probably won't have a choice.

This might help you:
http://www.sag.org/new-media-contract

 

[Zakaree Sandberg]

start your own film school.. tell the students it will cost them 10-20 grand.. throw them in a position.. BOOM movie.. and they get on set experience

 

[Roberto B]

fff money

friends
family
fools
....hehe




or...find some drugdealers who want to play in a gangstermovie..hehe

where do you think the gang buy the red cameras?.. :sifone:

 

[Joyfool]

Great ADvice, man. What's the ULB contract sing like? What kind of minimums are you talking for ULB?

I'm afraid of casting non-union on my project but the budget is so low I probably won't have a choice.

The rates are $100/day + pension health contributions (14.8%) + meals + wardrobe + time 1/2 for up 12 hours. Those 14 hour days can be a killer ($280 per day inc. pension/health)

On average you'll spend around 200 per day per actor. Also most agents will demand a 10% bump for themselves (common practice in lala land).

If you think you want to distribute your film for profit make sure to open the ULB agreement. If your film gets picked up you won't have to renegotiate with talent. The short film contract prevents you from making any money so you'll need to resign everyone to a new contract after the fact which can be very expensive...

Check out the SAG indie site for more info: http://sagindie.com/resources/contracts/

 

[Joyfool]

Great ADvice, man. What's the ULB contract sing like? What kind of minimums are you talking for ULB?

I'm afraid of casting non-union on my project but the budget is so low I probably won't have a choice.

Don't sell yourself short. There are many many many many ......many out of work SAG actors who would jump through fire for a chance to act on you film. Once you get your financing together put ads out on Breakdown Services, Backstage West, Craigslist, Mandy.com, Actors access. They will find you!!!! Right now recognizable TV actors are trolling all those sites looking for work and a way to expand their network. If you have a good script you'll get good and maybe great actors. Don't settle for less.

 

[Noah Kadner]

start your own film school.. tell the students it will cost them 10-20 grand.. throw them in a position.. BOOM movie.. and they get on set experience

I think that's being done already...

-Noah

 

[Kholi Hicks]

Freakin' awesome advice from everyone. Thanks! I just bookmarked this thread.