3 Ways to Finance Your Film

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Through the years, the Hollywood and independent cinema scene has drastically changed because of the new and emerging technologies that have revolutionized the filmmaking process. Gone are the days when private placement memorandums along with hundreds of film financing distribution with the help of other production partners invest in indie films. Nowadays, what you need is the support of any willing investor.
In the past years, there are several areas in the independent filmmaking process that have been influence by these changes. There are now online schools where aspiring filmmakers can get training and learn more about the filmmaking process. Also, most of the traditional and well-known fundraising methods to secure a film distribution are fast becoming obsolete with all the newer funding opportunities that filmmakers can take advantage of.
Nowadays, technology has not only changed how people do film but also altered how they are being distributed to a wide audience. Most internet connections all over the world are gradually improving and this will enable people all over the globe to watch movies in the comforts of their own home. Hence, indie filmmakers will need little help from large distributors.
In the near future, such things will change and will provide more opportunities to independent filmmakers who aspire to receive proper funding for their projects. According to the latest trends, companies online usually help filmmakers by matching them with the right distributor or investor. These type of services can be great help to aspiring indie filmmakers.
Good reviews will also help indie filmmakers when they are seeking for investors. Good reviews from credible critics for their past projects will come along way and can have substantial impact to the indie filmmaker’s goals. Here are some of the ways where you can fund your own independent film:

Equity refers to any hard cash investments offered to you by only a single investor or a group of investor and any form of personal investment from family and colleagues, in this form of investment, investors will have a stake in the film and must be paid back. This return usually included the principal investment and an additional 20% on top. This is before the filmmaker sees his profit.

Tax Incentives

Each state and country has their own legislation that enables filmmakers or producers to subsidize their production cost. This type of funding will require a filmmaker to hire a certain number of crew locally then also rent from local vendors. You will then have to run a payroll through local tax service. This process can be very tedious and usually takes 12 – 18 months to accomplish.

Crowdfunding and Deferred Agreement

Crowdfunding has been fairly popular in the past years. Filmmakers can gain donations from willing sponsors online to fund a project. Websites like IndieGoGo and Kickstarter are just some of the most popular crowdfunding sites. Deferred agreement can also be used to start a film project. However, this will require the crew, vendors, location, cast and service all rendered up front at no cost. The problem is that experienced crew and cast are unwilling to do such work scheme since they will only be paid once the project generates money which could be very financially risky.

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