There are many ways to fund a film nowadays. One thing is for certain, it costs money to produce a film, and without the money the film wont exist. Before looking for funding, it is important to create a reasonable budget on the film that is being made, and to create that reasonable budget you have to learn the different ways to finance the movie. What are some ways to get funding for a movie?
Equity is when you have investments that require the investor to own a stake in the ﬁlm and must be paid back before proﬁt is seen on the side of the filmmakers. A private equity firm, a venture capital firm or an angel investor will generally make a Private Equity investment. Each of these categories of investor has its own set of goals, preferences and investment strategies.
Deferred agreements state that the crew, cast, vendors, locations, and services are all rendered up front at no cost until the ﬁlm generates money upon release.
Pre-Sales agreements are pre-arranged and executed contracts made with distributors before the ﬁlm is produced. These agreements are based on the strength of the project’s marketability and sales potential in each given territory.
Music and film are closely associated, and films will usually use the music in their films to enhance the audience. By doing this, films could use a known musician to create a soundtrack for the film and use their name to promote the film.
Product placement is another way to fund for a film. When a film adds a big company product onto their set, they will be getting money for including their product into the film. The product exposure has a far greater value than the cost of the product placement and is generally seen to be cheaper than comparative advertising on TV or print. Brands will always want to know what the marketing strategy of the film is before they invest in, or even allow their products to be used.
In the past few years there has been a huge surge in crowdfunding feature length films. Top actors, writers, and producers have connected directly with their biggest fans to receive the funding to produce their film, rather than having a studio provide the funding. Crowdfunding also gives incentives for fans to become more interactive with the film throughout the production process.