Financing / Crowdfunding : Who bankrolls movies? by Willem Elzenga 2

Who bankrolls movies?

Here’s the field guide to the strange species of film investors that you'll end up begging, charming or dodging

Film money comes from a circus of characters, each with their own motives, delusions and fine print. Some want glory, some want ROI and some just want their nephew to play “Guy 3 at the bar.”

Angel Investors

- Usually wealthy individuals who like the glamour of “being in the movies.”

- Often more interested in being invited to the premiere than making a profit.

- Great for passion projects, but beware: they’ll want their nephew in a cameo.

Private Equity Investors

- High net worth people or groups who see film as a high-risk, high-reward business.

- Expect serious returns and proper accounting. They will ask about your “exit strategy.”

- Translation: less romance, more spreadsheets.

Production Companies

- Already in the business, know the risks and may invest cash or in-kind services (gear, crew, post).

- They’ll want creative control, credits and a say in casting.

Studios (Major or Mini-Major)

- Bring the money, distribution pipeline and global marketing muscle.

- But they’ll also sandpaper your script into something “four-quadrant” (i.e. bland enough for everyone). Some studios are more artist friendly than others.

Distributors / Sales Agents

- May put in financing if they think they can sell the film in advance.

- Typically tied to pre-sales: they’ll leverage future distribution rights (foreign, streaming, TV) to raise cash upfront.

Government Funds & Film Commissions

- Grants, tax credits, rebates.

- Usually no repayment, but lots of paperwork — and sometimes cultural requirements (e.g. must shoot locally, use national talent).

- Often won't fund the entire project

Crowdfunding Backers

- The internet mob who chip in 10 - 100 euro each.

- You don’t owe them money back, just merch, shout-outs and the illusion they’re “part of the journey.”

Brands & Product Placement Partners

- Not strictly “investors,” but they’ll pony up cash or resources to get their car, drink or clothes featured. Brenda tie-ins with companies that share the same ideals as the story are becoming more commonplace.

- Can feel gross - but free money is free money.

Gap Financing / Banks

- Financial institutions that’ll loan against future revenue (pre-sales, tax rebates, distribution contracts).

- Risky: if your movie tanks you’re personally on the hook.

Friends & Family

- The oldest and most dangerous investor pool.

- The risk isn’t financial ruin - every Christmas dinner for the rest of your life they’ll ask “So what happened with that movie we funded?”

(by Jeremy Curl)

Kenneth George

Willem Elzenga 2 Each of the sources you listed have pros and cons. You probably forgot the mob (as in Ozark). They usually just need somewhere to park a few million in what looks like a legitimate enterprise. Just have a good escape plan to disappear if the film bombs. They'll usually send an enforcer to come looking for not just you but anyone connected to you. They dont quite care about the disclosed risk factors in the prospectus or ppm.

Jon Shallit

Sandpaper your script into something “four-quadrant” (i.e. bland enough for everyone. Love that comment.

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