5 Rules for Finding Film Investors

One of the most common questions I get is where to find investors for a feature film.  Inherent in that question is simply where to find investors.  While I may not have a specific answer for you regarding exactly where to find them, I do have a set of rules for figuring out where you might be able to find them in your local community.  This is meant to be applicable outside of the major hubs in the US, and as such it’s not going to have to be more of a framework than a simple answer.

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1. ​Go where the money is.

Think about where people in your community who have money congregate.  In San Francisco, the money comes from tech.  In Colorado, the money came from oil, gas, and tourism, but has recently grown to include legal recreational marijuana.  In many communities, some of the most affluent are the doctors and medical professionals.  In most communities, the local lawyers tend to have money, but you’ll have to make sure you come prepared.  Figure out what industries drive your local economy and then extrapolate from that who might have enough spare income to invest in your project. 

If you know what these people do, then you can start to figure out where they go when it’s after working hours.  If you know where they go after hours, you can go get a drink and start to work your way to making a new friend in this investor. 

All that being said, Be careful not to solicit too early, as that can actually be illegal.  #NotALawyer.​

2. Figure out a place where you can find something in common

Any investment as inherently risky and a-typical as the film industry relies heavily on your relationship with your investor.  As such, finding something you have in common is a great way to start the relationship right. 

RELATED: 7 Reasons Courting an Investor is Like Dating

As an example of what I mean, I’ve met investors while singing karaoke at Gay bars in San Francisco.  I’ve met others at industry events, and I’ve even met a few by going to some famous silicon valley hot spots where investors and Venture Capitalists are known to congregate.  If you know where all the doctors go to drink after work, and if there’s a regular activity at one of the bars that can facilitate meeting them, it might not be a bad idea to go and try to establish some connections in that community.  This segues us nicely to…

3. ​Understand that moneyed people tend to have their own community

Generally, wealthy individuals know other wealthy individuals.  If you develop a relationship with someone within that community, it means that even if that investor you ended up establishing a relationship with won’t invest, they may talk to a friend about it who might. 

The reverse of this notion is also true.  If you get a bad reputation in the Wealthy community then you’re likely to find it very hard to raise funds for your next film.

4. Understand that most people with money will have other investment options.

As stated above, film investment is highly volatile and inherently risky.  If these investors took on every potential project that comes asking for their money, they would not be rich for very long.  As such, you’re going to have lots of competition when it comes to raising funds for your film.  This competition will not only come from other films, but also from stocks and bonds, other startups and small businesses, and even the notion that if they’re going to spend 100k they never get back, why not just buy a new Mercedes?

5. Find a not entirely monetary way to close the deal.

So to bring the last point home, you have to find other reasons that aren’t solely based on return on investment to get people to consider investing in your independent film. This can be the tax incentives, the moral argument to support culture, the fact that investing in a film is an inherently interesting thing to do, or a few other potential things. The blog below explores this in much more detail than I have the time or the word count to do here today.

Related: Why Don't Rich Tech People Invest in Film Part 5: Diversification and Soft Incentives

If you still need help financing your film, you should check out my free indiefilm business resource package. It’s got lots of tools and templates to to help you talk to distributors and investors, as well as a free-ebook so you can know what you need to know to wow them when you do. Additionally, you’ll get a monthly content digest to help you stay up to date on the ins and outs of the film industry, as well as be the first to know about new offerings and releases from Guerrilla Rep Media. Get it for free below.