Looking Beyond the Film Investor Letter of Intent to Something More Solid
Whether you’re entirely new to filmmaking, or it’s something that you’ve been heavily involved in for some time. There’s almost certainly areas that you’re not as familiar with as others. In fact, we frequently hear newbie filmmakers talking about the steps they take in seeking their investors to sign letter of intent forms. As a means of helping them to prove their film’s worth to others. But is this really applicable? Looking beyond the film investor letter of intent. Are there other, more suitable (and trusted) sources of proving your film idea is valuable?
What’s the Film Investor Letter of Intent?
A film investor letter of intent is a written document that basically reflects the intent of an investor to consider providing funds for your film project.
It’s a short, 1-2 paragraph form that essentially states the film name, the investor’s name, and the investor’s intent to invest into the film production in the future.
While it may seem like an ideal and useful form that can help you to secure the interest of other investors into your project, it’s not always as cut and dry as it may seem.
Not a Binding Contract
The film investor letter of intent is not binding. And therefore there are no guarantees that come from having an investor. Or anyone else for that matter take the time to provide you with the signed letter.
In fact, some actors, investors, and others in the industry might even consider the letter of intent a waste of time…
And yet, many newly aspiring filmmakers continue to request these letters of intents be submitted. In fact, some are quite rampant about their desire to have any and all investors that have any interest in their project sign a letter of intent – but why?
A Filmmaker’s Point of View
From the filmmaker’s point of view, when an investor or anyone else is willing to sign a letter of intent. And provide it for you it shows that they have great interest in your film. It’s like a stepping stone to getting the interest of others involved.
You might recall the old adage, nobody wants to be first? If you can get one person to sign a letter of intent, then you can show others and they’ll follow suit. Or, at least that would be what makes most sense.
However, it’s not always so simple.
Other Investors Are Not So Easily Convinced
Another situation that you’re likely to face as a filmmaker is that even with an investor letter of intent there’s little chance that other investors are actually going to care much about it.
Unless you’ve got a major investor that’s showing major interest. Or you’ve got a big name in the industry that’s willing to state that they are likely to invest in your project.
There’s very little chance that getting these investor letter of intent forms signed will have much weight on the decisions of other investors. Perhaps they did at one time, but not so much now.
So, what’s the point?
If you’re new to the industry, you’re almost certainly wasting your time going around seeking investor letter of intent forms for your production.
They’re not going to serve the purpose you want them to and many investors will think you’re wasting their time. If you can’t get a signed, true agreement? Move on! There’s plenty of other investors in the sea.
