Funding is it; money is everything
Money reigns supreme as the ultimate challenge. The wildcard of economic conditions can make or break even the most impeccably planned ventures.
The biggest challenge is money. Everything else stems from that.
You’ll hear “the money is the easy part.” They’ll say the deal is the hard part. Making the package to line up the parts and attract the talent and pull in the investors—-
STOP.
No.
Money. Money is and always is the ultimate challenge.
All those other bits—the “deal-making” stuff, is just steps toward the money. If you have the money, those steps are just normal business practices. Hiring. Setting deal terms. Making schedules. Logistics.
If you DON’T have the money, those are hurdles and/or carrying straps. They can be objectives to achieve in order to create an enticing package that investors can get behind, or they’re things you don’t have that prevent you from moving forward. Either way, they’re not the end goal.
Money is the deciding factor. It just is. It always has been. Nothing else matters.
Can you make a movie if you don’t have money? Well, yes. You can beg friends and family to give you money (directly or through a crowdfunding campaign). Or you can know a rich investor (or a few, or many) who will give you the funding. Or you can go to a bank and get a loan. Or a combination of all these and a few other ways and means (grants being one notable way).
Notice, all of these are just middle people. Instead of you having the money directly, you have to ask someone else for the money. At the end of the day, your relationships (familial, personal, business) are proxies for money.
I’ll say it again for those in the back.
ALL THESE THINGS ARE JUST PROXIES FOR HAVING MONEY YOURSELF.
The difficulty of raising money for a movie is undeniably one of the most formidable hurdles filmmakers face on their journey from script to screen. It's a multifaceted challenge that hinges on a complex interplay of factors, each capable of influencing the outcome in significant ways. Success or failure boils down to a delicate dance involving who you know, the quality of your project, the caliber of your team, the depth of your preparation, and, to a large extent, the ever-fickle economic conditions.
Firstly, the power of your network can't be overstated. In the film industry, relationships are often the currency that unlocks opportunities. Knowing the right people, whether they are potential investors, seasoned producers, or influential creatives, can open doors that would otherwise remain firmly shut. Networking isn't just about shaking hands and exchanging business cards; it's about cultivating meaningful connections that go beyond superficial exchanges. The more robust your network, the greater the likelihood of finding someone willing to invest in your cinematic vision.
Equally crucial is the quality of your project. A compelling script, a unique and marketable concept, and a clear vision can set your project apart in a crowded landscape. Investors want to back films that stand out, ones that have the potential to resonate with audiences and leave a lasting impact. A well-crafted story, combined with a solid understanding of your target audience, can be the linchpin in persuading potential backers to part with their hard-earned cash.
The team you assemble is another critical factor. A stellar cast and crew can instill confidence in investors, assuring them that their money is in capable hands. Experienced professionals bring not only their skills but also a track record of success or, at the very least, lessons learned from past projects. Conversely, a team lacking in experience or cohesion can be a red flag for potential investors, making it even more challenging to secure funding.
Preparation is the unsung hero in the battle for financial support. Thoroughly researching production costs, developing a realistic budget, and having a clear roadmap for how the funds will be utilized can instill confidence in investors. It's not just about having a great idea; it's about demonstrating that you've thought through every aspect of the filmmaking process and have a solid plan in place.
However, even with the perfect storm of a strong network, an exceptional project, a top-tier team, and meticulous preparation, success is not guaranteed. Economic conditions, the wildcard in this cinematic poker game, can either propel your project to new heights or send it crashing down. Uncertainty in the market, shifts in audience preferences, or broader economic downturns can significantly impact investors' willingness to take risks.
The film industry is not immune to the broader economic landscape. Ripples and changes in the market's response to certain types of movies can swiftly alter the funding landscape. Industry conditions, such as labor strikes or unforeseen disruptions, can hamper, delay, or even halt development, creating an atmosphere of fear and uncertainty among investors.
Hell, rising interest rates can impact how much production capital you might have available. Check out this geeky thread on this exact subject and tell me things are easier now than ever.
Having just come off the 144-day WGA strike and with the 118-day SAG strike ending on a tentative deal (not yet ratified), we’ve just come out of a nearly half a year of roiling uncertainty, which shut down the industry itself but also sent tendrils of fear out to satellite operators (financiers being one of those). Lending in an environment of fear, uncertainty, and doubt is fraught with danger, even if underlying foundational principles (such as business planning) hasn’t changed.
Fewer investors are willing to take risks on a risky project partially or completely financed by debt at these interest rates when they could park their money in a 5.00% money market or index fund for the same amount of time (or less) than their money would be tied up in your film, and they’re guaranteed a return.
Ultimately, while filmmakers can control many aspects of their projects, economic conditions remain largely outside their grasp. This external factor can be a deciding force, determining whether a meticulously planned and brilliantly executed project secures the necessary funding or languishes in the depths of financial uncertainty.
Look, this is an extremely tumultuous industry, where creativity meets commerce. The ability to navigate and adapt to these economic currents is as crucial as any other skill in the filmmaker's toolkit. And, sadly, it’s not been something I’ve done well at. During the strikes, I kept my head down and worked on other projects and invested in myself in the form of a writing retreat, but on the Lucid front, it’s been virtually zero movement forward.
I’ve always known this was a long game and I need to remind myself once again that this is what I signed up for. I haven’t given up, but I definitely took myself out of the race a bit. I stopped by the beer tent and now I’m back and it’s sluggish and the finish line feels further away than ever.
Success requires not only a compelling story and a talented team but also a keen awareness of the economic conditions that drive decisions. Now that we’re heading back into an era where actors and writers can work again, I’m jumping back into Lucid, especially on the financing side.
I’ve joined a Discord that is all about film financing and was started by a veteran EP (the same guy who tweeted the thread above) who has a stated personal mission of helping 50 filmmakers sell their film next year. It’s a great way to connect with other creatives who are trying to learn the business, and potentially connect with some financing partners as well. Strengthening the web.
On the script side, I have to undertake a few revisions after a discussion with one of our other potential producers, who had some notes on the relationship between the protagonist and his father, notes that I believe are spot-on and will give the script even more connective tissue in the thematic department while deepening our understanding of these characters’ inner motivations.
So, things are moving again, if very slowly. It’s inching toward winter, and the time to stay inside and work on creative problems is here. I am excited to see what awaits us in 2024.
I recently read a post by a producer who just came back from AFM (American Film Market) and this person had some interesting thoughts on the future of film financing.
They talk about how the future of film production lies in being flexible and adapting to changes in the industry. Traditional indie film financing is becoming more difficult (as discussed above), so producers need to think outside the box to get projects made. They told a story of a producer colleague finding alternative funding sources since their traditional financing fell through.
It got me to thinking: what are those "side door" funding models that aren’t traditional and aren’t your usual PE or crowdfunding methods? Here are a few I came up with, but I’d be interested in hearing any not mentioned here and what success you might have had with them:
Investment from tech companies or startups looking to get into entertainment
Sponsorship or brand integration deals
Product placement within the film
Pre-selling international distribution rights territory by territory
Securing soft money grants from arts councils or film commissions
Tax incentives from filming in other countries
Co-production treaties with other countries to pool resources
NFT sales built around the IP before filming
The future of film production will likely rely on leveraging lower cost locations, international tax incentives, alternative funding sources, and rethinking profitability timelines. More cooperation between parties will be key, and the biggest one in my opinion will be partnerships to share resources and risks.
Sales agents also may need to be more flexible on talent attachments required. Overall, the industry must adapt to contracting markets, high interest rates, and inflation.
Guys, this industry is terrifyingly complicated at times. As a producer for Lucid, I often feel lost, and that’s knowing how much I know about how all this stuff works. I cannot imagine what it might feel like if you’re in the weeds and just starting to learn about all this stuff.
Hit me up if you need advice or encouragement.
That’s all for this week. Thanks for taking the time to read!
As much as I don’t really care for discord/the internet in general I’d be interested in what the community has to offer insofar as insight for funding indie projects. Is there a link to this server available for the public or is it subscription based? Thanks for this great post.