At least I think it is. I'm looking at the different ways to finance a feature film and I want to see if I have the facts straight.
Production Loans - Good source of funding, but often (always?) require a distribution deal be in place, which often (always?) requires name talent be attached to the project.
Passive investors - Asking rich people for money. Great if you know some people with money. My issue is that it seems to an SEC violation to pursue passive investors without a security offering, which is pretty expensive to set up properly (improperly is as bad as not setting one up at all, maybe worse).
Active investors - Getting money from people actively involved with the project (or personal friends of someone actively involved in the production of the film) i.e. Someone with an Exec. Producer credit. Problem here is that the person has to be involved in more that just the raising of funds; they have to be an active participant in making decisions regarding the film.
Personal Funds - Obvious problem is not being independently wealthy
What have I missed? Is there anything that I have misunderstood? I'm not asking where to find money, but rather what are the LEGAL ways to go about raising money. I've consulted a lawyer about these questions, but I'm hoping to get some additional insight from people with first hand experience.
Production Loans - Good source of funding, but often (always?) require a distribution deal be in place, which often (always?) requires name talent be attached to the project.
Passive investors - Asking rich people for money. Great if you know some people with money. My issue is that it seems to an SEC violation to pursue passive investors without a security offering, which is pretty expensive to set up properly (improperly is as bad as not setting one up at all, maybe worse).
Active investors - Getting money from people actively involved with the project (or personal friends of someone actively involved in the production of the film) i.e. Someone with an Exec. Producer credit. Problem here is that the person has to be involved in more that just the raising of funds; they have to be an active participant in making decisions regarding the film.
Personal Funds - Obvious problem is not being independently wealthy
What have I missed? Is there anything that I have misunderstood? I'm not asking where to find money, but rather what are the LEGAL ways to go about raising money. I've consulted a lawyer about these questions, but I'm hoping to get some additional insight from people with first hand experience.
