Independent films are usually financed with a mix of sources: equity from private investors, loans against pre-sales to distributors, government tax incentives, and sometimes gap or bridge loans to cover the remaining budget.
Independent films are rarely paid for by a single source. Producers usually build a "capital stack": equity from private investors, money raised against pre-sales to distributors, government tax incentives, and sometimes gap or bridge loans to close the difference.
PitchStreet members post film, documentary and TV projects with the budget they need, and investors interested in entertainment can browse them and get in touch.
The main sources of film money
- Equity investors: private individuals or companies who own part of the film's revenue in return for their investment
- Pre-sales: distributors in different territories agree to buy the finished film, and those contracts can be used to raise loans
- Tax credits and incentives: many states, provinces and countries refund part of the money spent filming there
- Gap and bridge financing: loans against unsold territories or expected tax credits
- Crowdfunding, grants and brand partnerships, often for documentaries and smaller budgets
What film investors ask for
Investors want to understand the risk and how they get paid back. Have a finished script, a realistic budget and schedule, attached talent or key crew if you have them, comparable films and their results, the incentive you plan to use, and a clear "waterfall" showing who is paid back first from the film's income.
