Chamber005
Carbonite Member
So I've got another thread happening in the DVXuser News forum on this and was urged by a couple of people to just do the damn thing myself.
I'm only in about month 5 of learning filmmaking. I've been a writer most of my life and decided that I need to learn how to make movies instead of waiting around for someone to make them for me.
I've got a long way to go before I'm ready to start making movies myself, but I'm ready for something, right?
It's going to be a couple years before I have anything of my own to sell, so right now I'm stuck with all my real life working (non-creative) talents being sidelined until then.
Unless I can find someone here who has similar sensibilities to my own, who has a proven track record and who wants me to help raise money for them on their next project.
There are obviously some terms, so I'll get on them straight away:
A) Resonable budget. If you've secured funding for yourself before you know what reasonable is. I see people making decent indie films for 85K. Obviously someone who already owns their own equipment, has some people they've worked with would be a plus.
B) You must have a company. LLC, Inc, whatever. I can't raise money for someone if you're just an individual.
C) "Proven track record" can mean a lot of different things. Maybe you've won some awards, placements? Maybe you just have a few short films that no one voted for but that I personally think kick major ass. Ideally proven track record would indicate that you've at some point in your career actually sold a micro budget narrative flick. That would be huge.
D) The script. I have to see the script and have some kind of input regarding it. If you don't have a script then together we'd look at people here and maybe have some kind of a contest. I have scripts myself, but that's a separate thing that I'll be doing for myself down the road.
E) Apart from learning, gaining connections, etc, I want nothing to do with the making of the film myself. If you're the director I decided to get behind it's because I believe in your ability to make a movie. I'm in Chicago, and since most of you are in California there's a good chance we won't see each other much.
F) With the exception of wanting to have some input in the scripting process, I am strictly of the raising-money capacity. I would prefer someone who already has a producer (or is knowledgeable enough themselves to produce) who understands working with insured funds as well as distributors as I'd be no help whatsoever on that end.
G) Budgeting. I don't care what you spend your money on so long as there is something set aside for marketing. Marketing is cheap (especially when you're not paying for the person actually designing and implementing the marketing but only the raw materials), but it needs to be a factor in the final budget.
I work commission for a living so I have no problem with the notion of "I make money when you make money". I can't promise the specific dollar amount I can raise for you, but I can tell you that I'm no slouch when it comes to money matters.
Raise your hand if you're interested and we'll see what's what.
EDIT: Or maybe not.
Legalese:
A business plan IS NOT a Private Placement Memorandum
I'm only in about month 5 of learning filmmaking. I've been a writer most of my life and decided that I need to learn how to make movies instead of waiting around for someone to make them for me.
I've got a long way to go before I'm ready to start making movies myself, but I'm ready for something, right?
It's going to be a couple years before I have anything of my own to sell, so right now I'm stuck with all my real life working (non-creative) talents being sidelined until then.
Unless I can find someone here who has similar sensibilities to my own, who has a proven track record and who wants me to help raise money for them on their next project.
There are obviously some terms, so I'll get on them straight away:
A) Resonable budget. If you've secured funding for yourself before you know what reasonable is. I see people making decent indie films for 85K. Obviously someone who already owns their own equipment, has some people they've worked with would be a plus.
B) You must have a company. LLC, Inc, whatever. I can't raise money for someone if you're just an individual.
C) "Proven track record" can mean a lot of different things. Maybe you've won some awards, placements? Maybe you just have a few short films that no one voted for but that I personally think kick major ass. Ideally proven track record would indicate that you've at some point in your career actually sold a micro budget narrative flick. That would be huge.
D) The script. I have to see the script and have some kind of input regarding it. If you don't have a script then together we'd look at people here and maybe have some kind of a contest. I have scripts myself, but that's a separate thing that I'll be doing for myself down the road.
E) Apart from learning, gaining connections, etc, I want nothing to do with the making of the film myself. If you're the director I decided to get behind it's because I believe in your ability to make a movie. I'm in Chicago, and since most of you are in California there's a good chance we won't see each other much.
F) With the exception of wanting to have some input in the scripting process, I am strictly of the raising-money capacity. I would prefer someone who already has a producer (or is knowledgeable enough themselves to produce) who understands working with insured funds as well as distributors as I'd be no help whatsoever on that end.
G) Budgeting. I don't care what you spend your money on so long as there is something set aside for marketing. Marketing is cheap (especially when you're not paying for the person actually designing and implementing the marketing but only the raw materials), but it needs to be a factor in the final budget.
I work commission for a living so I have no problem with the notion of "I make money when you make money". I can't promise the specific dollar amount I can raise for you, but I can tell you that I'm no slouch when it comes to money matters.
Raise your hand if you're interested and we'll see what's what.
EDIT: Or maybe not.
Legalese:
The other major source of funds, equity financing, is problematic because
a securities offering memorandum (or disclosure document commonly referred to
as a "Private Placement Memorandum or PPM") is required to raise money from
investors outside of your family no matter how small the amount involved. Full
disclosure is required under the securities laws and notice filings are required by
the federal Securities and Exchange Commission (the "SEC") and by the laws of
each state in which investors reside (known as "Blue Sky Laws"). Violations of
the SEC requirements and the applicable Blue Sky Laws carry both criminal and
civil penalties.
a securities offering memorandum (or disclosure document commonly referred to
as a "Private Placement Memorandum or PPM") is required to raise money from
investors outside of your family no matter how small the amount involved. Full
disclosure is required under the securities laws and notice filings are required by
the federal Securities and Exchange Commission (the "SEC") and by the laws of
each state in which investors reside (known as "Blue Sky Laws"). Violations of
the SEC requirements and the applicable Blue Sky Laws carry both criminal and
civil penalties.
A business plan IS NOT a Private Placement Memorandum
. A business
plan and a securities offering memo serve very different functions. A business
plan is a marketing document created from a selling point of view, which
necessarily contains optimistic information, forward-looking statements, hopes
necessarily contains optimistic information, forward-looking statements, hopes
and dreams, and possibly financial projections. A securities offering memo, on
the other hand, is a full disclosure document, which must contain all the bad
news, risks, and must list and comment upon all possibilities that could go wrong.
In order to safely comply with these laws, a producer should work with an
attorney who is familiar with both entertainment and securities regulation. This is
not a “do-it-yourself” type of project nor is it wise to "cut and paste" portions of
other PPM documents that you find on the web because the producer, without
help of securities counsel, has very little notion of what provisions and
information are needed.
the other hand, is a full disclosure document, which must contain all the bad
news, risks, and must list and comment upon all possibilities that could go wrong.
In order to safely comply with these laws, a producer should work with an
attorney who is familiar with both entertainment and securities regulation. This is
not a “do-it-yourself” type of project nor is it wise to "cut and paste" portions of
other PPM documents that you find on the web because the producer, without
help of securities counsel, has very little notion of what provisions and
information are needed.
The following is a summary of some of issues that arise when preparing a
private placement investment offering under this exemption:2
1. No General Solicitation. The producer may not engage in
1. No General Solicitation. The producer may not engage in
any “general solicitation.” This basically means that investors are limited
to people that the producer actually knows, such as business associates,
friends and family. The producer may not advertise for investors in a
newspaper, or use a general mailing list or any other means of mass
communication. There are specific rules regarding general solicitation,
and an attorney can help to clarify exactly what a producer may and may
not do when approaching potential investors.
2. Accredited investor requirements. All investors must be
“accredited investors.” An “accredited investor” is a person of high net
worth, or certain kinds of banks or corporations. There are exact
numbers and specific requirements that a person, bank, or corporation
must meet in order to be considered “accredited.” These rules are
complex and change from time to time as the laws are updated. When
making an initial pitch, a producer can target people or corporations who
probably have high net worth. However, before finalizing the deal, the
producer must coordinate with an attorney, and review the investor’s
financial statements, in order to make sure the investor is indeed
“accredited.”
3. Disclosure requirements. A producer should present
potential investors with a “private placement memorandum” or a “PPM.”
The PPM is a document that discusses the business plan, the nature
and structure of the investment, and the potential risks involved. While
securities laws do not specifically require the PPM, it is nonetheless a
critical document. By communicating with investors through a PPM, a
producer can significantly reduce the possibility of lawsuits or criminal
charges down the road. A PPM is more than just a business plan; it is a
carefully drafted legal document and should be prepared by an attorney.
4. Filings. There are certain documents that the producer must
file with the state and Federal governmental authorities when issuing
securities. Securities laws require these filings, and the filings act to
alert the relevant governing bodies that the producer is conducting an
exempt securities offering.
to people that the producer actually knows, such as business associates,
friends and family. The producer may not advertise for investors in a
newspaper, or use a general mailing list or any other means of mass
communication. There are specific rules regarding general solicitation,
and an attorney can help to clarify exactly what a producer may and may
not do when approaching potential investors.
2. Accredited investor requirements. All investors must be
“accredited investors.” An “accredited investor” is a person of high net
worth, or certain kinds of banks or corporations. There are exact
numbers and specific requirements that a person, bank, or corporation
must meet in order to be considered “accredited.” These rules are
complex and change from time to time as the laws are updated. When
making an initial pitch, a producer can target people or corporations who
probably have high net worth. However, before finalizing the deal, the
producer must coordinate with an attorney, and review the investor’s
financial statements, in order to make sure the investor is indeed
“accredited.”
3. Disclosure requirements. A producer should present
potential investors with a “private placement memorandum” or a “PPM.”
The PPM is a document that discusses the business plan, the nature
and structure of the investment, and the potential risks involved. While
securities laws do not specifically require the PPM, it is nonetheless a
critical document. By communicating with investors through a PPM, a
producer can significantly reduce the possibility of lawsuits or criminal
charges down the road. A PPM is more than just a business plan; it is a
carefully drafted legal document and should be prepared by an attorney.
4. Filings. There are certain documents that the producer must
file with the state and Federal governmental authorities when issuing
securities. Securities laws require these filings, and the filings act to
alert the relevant governing bodies that the producer is conducting an
exempt securities offering.
:::whistles:::
So the thing that really cripples me is the whole "general" solicitation thing. The other legal matters would be handled by whomever's company I was raising the money for, but being unable to cold sell people severely inhibits my ability to raise funds, and if you add onto that the fact that I can't raise money from anyone who isn't an "accredited investor"...
Wowza.
I guess the only way around it is to essentially give someone a producer credit, right? Is that how people get around this bizarre law? If someone gives you 10,000 dollars for a producer credit and sign on accordingly, then they're no longer an investor, they're a producer, right?
Still, kind of a bummer. I was all excited.
Maybe just meet me over in the DVXnews thread under "Should DVXuser start a production company". Maybe enough of us can get together and get behind a director here and call ourselves producers. 
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