Introduction to Raising Independent Capital

“There are different ways to raise capital for your movie and sometimes the easiest place to get it is where you’d least expect it – from people with deep pockets interested in dabbling in the motion picture industry. In my new book, ‘What You Don’t Learn in Film School: A Complete Guide to (Independent) Filmmaking’ I dedicate a whole chapter to not only raising private equity but how to conduct yourself when it comes time to pitch.”

The Limitations of Film School

“In film school, they make sure to cover the basics like creative writing, camera, editing and budgeting – at least they’re supposed to – but I am yet to find one institution that has an effective course in presenting a project to potential investors. A lot of your success in raising money will be based on preexisting relationships, connections you make through life, and good luck, but once you get into the room, there are some basic dos and don’ts that are rarely covered in the lecture halls.”

The Savvy Investor and Your Presentation

“If someone is really in the position to write a check to finance a film, they’re probably pretty savvy. Trust me, they have been pitched everything from financing movies to opening night clubs, starting clothing lines and molding widgets by someone a lot slicker and more qualified than you. Investors know they hold the key to unlocking the door to the dreams that can change your life, so go deep in thought when creating a presentation because you’re pitching them on a fantasy (smoke and mirrors), not real estate or something they can look, touch or feel at the moment.”

Advice for New Filmmakers

“I always advise new filmmakers to play in an arena they’re not only passionate about but also comfortable in. As you find your legs I think it’s wise to have all the bases covered of your chosen genre, which will aid when executing creative discussions with your filmmaking team and onscreen talent, but more so when pitching your project to potential investors. They’ll appreciate your expertise on the subject and sense the passion you possess as the gibberish naturally rolls off your tongue.”

Selling Your Project

“Remember, when you pitch an investor to finance a film, you’re selling something different. You’re selling the magic and the sizzle of Hollywood and most importantly, you’re selling yourself along with the upside (or fallacy) of what their investment might return.”

What to Include in Your Film Finance Package

“What to put in your film finance package is key. I don’t think you need too much weight in the room. A simple proposal can include a summary about your film, your bio, and a distribution plan including similar films and how they did in the marketplace.”

Handling Investor Questions and Building Trust

“People with real money are presented opportunity all the time and you have to think on your feet and always be prepared for an audible. Know your presentation backward and forward and never be afraid to say, “I don’t know” when asked something you don’t know the answer to.”

Realistic Comparables for Investors

“Think outside the box and keep things in the ‘real world’ when giving investors comparables. I’ve used films with little fanfare in my presentations like Lovely and Amazing or Like Crazy; films that cost little to produce and turned respectable profits that are more realistic to obtain.”

Managing Investor Expectations

“Always keep things in perspective so that even modest returns can be seen as a victory. If your investor turns a profit and makes their money back plus 25-30%, that’s an attractive return. But if they are anticipating making back five times their money because you said they could, they will only be disappointed when things fall short.”

How to Handle Investor Rejection

“After all, people pass for so many different reasons and I promise you, I’d wear out the keys on my computer writing half of them. You never know what makes people pull the trigger on things, but life is a long time and people’s circumstances and minds are always changing.”

Building Relationships With Investors

“On the flipside, people will do business with you because they like you and feel a sense of comfort in how you conduct yourself. I once had an investor reject me after asking for a couple of weeks to consider a proposal. After I thanked him for his consideration and explained I respectfully understood his decision, he did a 180 right there on the phone and agreed to finance the project, as he only wanted to test my personality by giving me a false no.”

Preparing Your Pitch and Courtship of Investors

“You have to learn to be well versed in what the opposition is thinking. Any Army General or sports coach will tell you that’s key to a successful battle plan. There have been countless articles written to help save potential investors from getting hosed by bad investments and scams surrounding the entertainment business, especially after people like Joseph Medawar have done so much damage.”

Final Words and Author Information

“For more insight on how to prepare your pitch and get more invaluable tips to raising capital and producing your independent film, please visit www.whatyoudontlearninfilmschool.com. Shane Stanley, filmmaker and author of the popular new book, “What You Don’t Learn In Film School” is a lifelong entertainment industry insider…”

Connect on Social Media

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Twitter: @ShaneStanley
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Shane Stanley, filmmaker and author of the popular new book, “What You Don’t Learn In Film School” is a lifelong entertainment industry insider, who has worked in every aspect of the business, covering a multitude of movies, television shows and other successful projects. At 46 years old, Stanley has been a steady earner in film and television since he was in diapers with a career that started in front of the camera at 9 months old and grew into a life of an Emmy Award-winning filmmaker spanning more than three decades. To order a copy of Shane’s book and for his seminar schedule, please visit: www.whatyoudontlearninfilmschool.com

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