Dinner and a Movie: The New Fundraising

Posted by Patty Fantasia on Tuesday, July 27, 2010 in Writers • Patty Fantasia • (0) Comments • Permalink •

A few weeks ago I wrote about the new possibilities created by crowdfunding, yet there are still filmmakers who prefer to find investors instead of donors to help finance their projects or who want to utilize a hybrid financing model.  One way of pitching potential funders that has proven successful for many producers is organizing a meeting either over dinner or at a local hotel or office building.  These methods allow you to reach more than one individual at the same time provided you are aware of certain legalities.  There is a fine line between speaking about your project to a group of people and soliciting funds and once an “investor” is approached your legal documents must be in place.  Another consideration to keep in mind is that in order to make an event like this successful, it must be as entertaining as it is informative.  Be prepared to dazzle and generate enthusiasm with your presentation

I’ve received a few tips from producers who have successfully raised funds this way I’d like to share.  First of all, be organized so that your actions appear effortless.  If you’re sitting down to a meal, make people comfortable and put them at ease before bringing up your business plan.  Filmmaker Steve Marra, who wrote, produced and directed the independent film “Amanda”, orchestrated a meeting like this at a local restaurant in Indiana where potential investors heard his pitch and met the film’s lead actors and key production members.  The next morning Steve received two checks allowing him to greenlight the project.   Find out as much as possible about your dinner companions beforehand by doing research online and finding out about their careers, hobbies and interests. If you’re unsure how to do this, googling them is a good way to get started.  Remember, this is an opportunity for financiers to get up close and personal with you and your team, so you need to inspire confidence and establish a rapport.  If you’re sitting down to dinner, time constraints for the meeting will be dictated by the meal itself, but if you’re gathering in a conference room it’s advisable to limit your presentation to between 45 and 60 minutes.  Having an established agenda informs guests about what to expect while allowing you enough time to state your case.  Have pens, paper and any other materials you’d like to provide people with ready along with a sign in sheet, so that you can keep track of who attended.  Also, check out equipment beforehand if you’re planning a slide show or any other type of visual aids so there are no delays.  Producer Suzanne Lyons began using this approach when raising funds for her first horror film and found it so successful that she now offers an annual workshop to filmmakers interested in learning her system.

Finally, we come to what is perhaps the most important element - your paperwork. At this point you should have company documents and a business plan ready for perusal. Depending upon whether you are doing a sales presentation or actively solicing funds will determine the specifics you need. At the very least an investment package should include your LLC or corporate information and a business plan including an executive summary, sample script and budget. Other paperwork such as operating and subscription agreements and your marketing and distribution proposals outlining how you intend to repay your financiers are also recommended. One other legal document you need to be aware of is the PPM (Private Placement Memorandum). If you are planning to solicit unaccredited investors you should have an attorney draw one up for the project, so that you are operating in accordance with the law. Legally, this document must be provided to unaccredited investors to ensure that they have been informed about your film's particulars and the risk they are taking by investing in it. Accredited investors don't require such information. Last I heard individuals with an earned income of $300,000 for at least two years or one million in net assets were considered accredited and thereby exempt, but I recommend verifying these figures with an entertainment attorney.  Finally, before releasing an investor’s package to anyone at an event have that attendee sign for it, so that you know where your documentation is at all times.

After working in the executive search industry for many years,Patty  transitioned into her life-long goal and began pursuing a new career path in film and entertainment. Patty is currently co-producing an indie short, titled ACCUSED, which is now in final editing, as well as implementing the promotional campaign and film festival submission strategy for it.  In the summer of 2009, Patty launched her film blog, Filmmakers Notebook (http://www.filmmakersnotebook.com/), and it became syndicated on Openfilm.com in January 2010.  Recently, Patty also became the Marketing Director for NOMOSA (http://www.nomosa.com/), an e-commerce and social networking platform for independent artists.  Finally, Patty will be handling promotion for a new short that is scheduled to shoot in August. All of these activities dovetail perfectly with her primary interests, which are producing, marketing and distribution.