What are Film Angel Investors?
Financing a film production is the number one challenge that filmmakers face when it comes time to advance their script or screenplay to the next stage of the filmmaking process. Fortunately, several opportunities exist when it comes to finding investors that will support your production. From corporate sponsors to angel investors, securing capital for a film production is really all about reaching out to the right avenues for support. But what are film angel investors?
What are Film Angel Investors?
An angel investor is an independent investor. Who provides start-up funding with their own financial backing from a high-net worth. In the case of film angel investors, they generally have a background either in film or in another profitable industry.
And are willing to invest their own money into a film production. Generally because of their genuine love of the industry.
Independently Wealthy
Angel investors provide a unique source of capital for a film project. And because they are independently wealthy. They can set their own standards for their investment.
Generally, film angel investors will provide capital in exchange for partial ownership in the film. Or for shares of the LLC or corporation that is created for the purpose of the production.
Stakes
As such, film angel investors may have some say in how the production moves forward. And they earn revenue from their investment generally based on the future profit of the film.
Most of the time, film angel investors will take between 15 and 30% stake in the film business. In exchange for their investment into the company.
Who are Film Angel Investors?
Who are these investors? And why do they invest into film projects? Generally, film angel investors are retired business owners that did well. And have substantial funds to invest into their own future ventures.
They likely have expertise in running a business. Which makes them ideal for the support of a production. As they can provide guidance on many of the aspects of the business side of the production.
Film angel investors bring with them a level of expertise and entrepreneurialism that provides unique value to the film producers. Additionally, they often choose stock as art of the investment agreement. Which they ultimately gain dividends from.
Seeking a Film Angel Investor
As you can see, film angel investors bring a unique value to a film production providing more than just capital to get the project off the ground.
However, if you’re considering the support of a film angel investor? You must be prepared to provide the agreed upon shares or ownership that they ask for. In exchange for their capital investment into your production.
This is important for you to carefully consider prior to making any final agreements. Because regardless of how great it might appear to have a capital investment into your project.
You must think long term about what it will be like for an investor to have 15-30% ownership in your production.
The Takeaway
As most film angel investors have a strong business background, be prepared not only to work closely with them on the business aspects of the production. But also to provide them with regular updates about what is going on with the film on a regular basis.
Film angel investors can provide a significant support and infusion of capital into your production, but as with any investment opportunity it’s important to consider all of the details before making a final agreement.
