How do movie investors make money?

Your film must partner with a distributor to obtain a theatrical release. Investors make their money back off the distribution “waterfall.” A waterfall is how profits flow back to the source. Usually, investors are the first to make money if there are any profits.

How do film investors get their money back?

Film industry investors are investing in the movie production; so, somewhat similarly, they receive their return when movie is sold for distribution. Like a loan, their money is against the finished product , the film, and the value of that is factored into the return of their capital.

How do I get people to invest in my movies?

How to Fund Your Film

1. Start Development with a Film Proposal. Get Key Crew and Cast On Board.
2. Present Your Film Business Plan to Investors. Package your Film as a Business.
3. Convince Investors with Film Revenue Projections. Prove you can Make a Return on Investment.

Can I invest in movies?

The biggest takeaway is that individual investors — people like you and me — could now invest in movies for returns. Prior to this, only accredited investors, those with annual income over $200,000 or a net worth greater than $1 million, could get a shot at Hollywood.

How much do investors get paid from a film’s budget?

• If the filmmakers only raised a total of $1.5M towards the Budget, the balance of the Gross Receipts (i.e. the unpaid items contained in the Budget, $500,000 ($2M minus $1.5M) is paid first. • Of the remaining $2.5M proceeds from the film, the Investors are repaid “first out,” proportionally to the amount of their investment, with interest.

How does the film industry invest in movies?

Film industry investors are investing in the movie production; so, somewhat similarly, they receive their return when movie is sold for distribution. Like the startup exiting when it gets acquired. The most important difference is that when we’re talking about movie investors, it’s more accurate to call them creditors.

What is the investor’s share in film investing?

The Investor’s Share is typically defined as 50\% of the total Net Proceeds. The other 50\% of the Net Proceeds goes to the producer (the “Producer’s Share”). This example demonstrates how, in a very low budget movie, investors see a significant ROI even with relatively modest gross receipts for the film.

What is the producer’s share of a film profit?

• Of the remaining $775,000 proceeds of the film, or the “Total Net Profits”, 50\% is paid to the producer of the film, known as the “Producer’s Share,” and 50\% is set aside for back-end pro rata payments due the Investors, known as the “Investors’ Share.”