PITCHING TO INVESTORS

Pitching to Investors
Written by Jeff Carney
My secret wealth formula is: very Long hours, many months of work spread over 2 years, Countless meetings/phone calls, cancelled meetings/rescheduled meetings/ with weeks and in some cases months of waiting, networking, lots of patience and a never say die attitude. A lot of people don't get to the last part.
Also having a good package available for investors to look at - eye catching package art, breakdown on how you are going to make the movie, breakdown of a investment plan for their money, Good bio of yourself, who you are with video clips or in some cases a copy of a movie you made to show what you have done in the past, Good actors.......Finally not as important but it can draw extra attention from investors - good equipment to show that you can actually make the movie and do it all without going to outside rental companys etc..(saves money on the budget that way from not renting equipment - investors like that since it saves them money).
Even for someone starting out (without a lot of background or equipment in making movies) I would say a good package with eye catching art and a breakdown of how you are going to make the movie and a plan for their investment in your project - could be enough in with some investors. I had some investors in the past tell me that they want to invest not to make money but it sounds cool and something they can brag to their friends on the golf course about - Playing golf and their friends start talking about stocks and the investor can start talking about the movie he is financing. He said it opened their eyes wide. Wouldn't it be great if all investors were like that - those types are rare and are the exception but they are out there. He was a dentist. Doctors/lawyers/business owners etc.. are all potential leads. I just asked around and found connections here and there among people which sent me on a interesting and ultimately rewarding journey.
My attitude is that even investors who don't invest can be useful - ask them if they can suggest anyone they know. Networking is a key. Your Aunt Agnes probably doesn't have the money to invest but she may know a friend who is best friends with the son of a brother who has a sister-in-law who has a daughter and is married to the town investment banker or cpa or doctor or...I've found some that way. Worse thing you can do is be shy about it or not make a call to a potential investor (even one who you don't think will invest) as you never know where that call may lead.
Financing is the worse part of any project - takes the most time regardless of how much or how little money you need (god aweful amount of time) and is probably the part I enjoy the least. But necessary......
I've got a larger project that I've been trying to finance for 2003 and had 17 out of 25 investors. Not enough to finance it but just came across (through dumb luck and a chance talk with a old friend) a single investor interested in financing the whole project but have to wait to talk details to the gentleman later this year. I've learned that "the details" mean A LOT..So have to wait and see on that one and see if details means that he wants his two headed daughter in the movie in a starring role or if I can cast whoever in it..Sometimes you do get strange requests from investors and then you have to decide if it is worth taking or not.
Nice thing about investors is that sometimes it only takes 1 of them believing in you and your project for it to get financed.
The main thing to remember in putting it together and pitching investors is that you are really selling an idea (the movie). Selling an abstract product is very tough. So the more you have to show the investors (actual physical things) the better off you are. If the person putting together the investor kit has experience in filmmaking hit on that, if you don't then try to get some actors cast who have independent movie experience or theater/stage background from your area. Then you can talk in the Investor package about their experience.
Artwork is a major key. I always make a professional looking video and dvd case so the investors can see what the art on the box would like sitting in a store and that is something they can hold in their hand. It helps make this abstract concept of movie making a bit more of a reality. Probably most of the investors you approach will never have thought it was possible to be involved in a movie before (which most people will tell you is bad because you then have to then sell them on the idea of making movies which they are not familiar with. But I've found that most people/investors want to talk to you out of curiousity - and that is great because all you need is one open door to get in. Anyone on this list knows the hard work and the very unglamorous world that is filmmaking. A lot of investors don't - they see it as glamorous. Hey - if that helps them come board your project then great it is a glamorous business.
You basically want 1) artwork 2) one page synopsis (with mention of a script available upon request) 3) details on how the investment will work (50/50 split with the production company, which is you the filmmaker, or possibly with 100% going to the investors until they make their money back and then a 50/50 split.). Explain to them how video distribution works (most investors won't have a clue so you need to educate them. A lot of investors won't realize that the movie you make will be sold online, in stores, for rental..and tell them you make money from sales not rentals because they won't understand this usually)...4) details on the video industry/sales figures of the video sales in the genre you are doing, Mention films that succeeded.. 5) bios of yourself, any cast, any crew (good crew bios can help too), 6) photos/resumes of actresses/actors with the name of the part they will be playing underneath their headshot 7) Stress the plus sides to investing (not only financial but the bragging rights they can have around their friends/business associates by being involved with a movie, let them visit the set with the family/friends..If you have some sort of name actor/actress involved - let them them meet the star during shooting.. 8) and stress the risks involved - that movies make money and they can also not make their money back. If you have ever seen a real investment plan for a business it is scary as almost every other page talks about not making money and losing money and the negative aspects which is legally what they have to do for large businesses. 9) check to see what the legal requirements are for # of investors in your area. Where I am at you have to keep it under 25 investors on a project and it probably varies from state to state. 10) list potential distributors - show them there are a lot of distributors to market your movie to. When in doubt consult an attorney.
These investment packages can be a short as 10 pages or as long as 40. I try to have everything summarized (my bio/cast/investment/synopsis) in the first four pages (for those with short attention spans) and then go into depth/details/longer resumes in the back of the package/examples both positive (selling a lot, selling break even point, and negative ( not selling many copies but also not selling any) of how payments would work/etc.. during the rest of the package. Be fair, be balanced - consider what you would want to know/be told about if you were investing.
If you have some interesting locations - take pictures and include those...The more you can show on your movie before you shoot the better of you will be. My attitude is, and I had it happen once, that the investor says "if you can do all of this without any money, I wonder what you could with money."
Check please..
Jeff
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