Filmmaking is definitely the most expensive and most complex form of art. In other to watch, hear, and feel the art, it takes a lot of money, manpower, equipment, and ideas just to have the final version of it. That’s why most filmmakers take some time to produce their films or distribute them for screening because they don’t have enough money to finance the whole project. That’s why most of them seek motion pictures production studios and propose to them their ideas of films to get financed. Some filmmakers, who don’t have enough clout for major studios, approach other investors to invest in their film in exchange for the rights of the film, or share of the revenue sales and control of the production. If you have a film production project that you dream of doing but don’t have enough funding to pursue it? You can look for investors and start proposing to them your film project and your plans for it. Read the article to know how to make a film investment contract.

10+ Film Investment Contract Samples

1. Film Investment Contract Template

film investment contract template

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2. Film Finance Investment Contract

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3. Film Production Investment Contract

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4. Film Investment Contract

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5. Sample Film Investment Contract

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6. Film Television Investment Contract

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7. Film Industry Investment Contract

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8. Film Project Investment Contract

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9. Film Commission Investment Contract

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10. Standard Film Investment Contract

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11. Film Investment Contract Form

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How Do Filmmakers Present Their Film To Get Funded by Investors?

For filmmakers to successfully fund their film by investors, they should the following practices:

  1. Get key crew and cast on board:  It helps you see your project on paper and, most crucially, attracts skilled staff and expertise.
  2. Package their film as a business: Now we’ll see how much your film will cost to make. A film business plan shows investors how much money is needed for development, pre-production, shooting, post-production, and distribution.
  3. Prove they can make a return on investment: The most vital aspect. You must show that your picture will pay for itself. An analysis of similar films with the same budget to get a low and high estimate on how they did at the box office.

How to Create a Film Investment Contract

Writing an investment contract professionally and methodically is advised owing to the legal implications. Examining similar samples and providing the following elements can help simplify investment contracts:

  • General investment structure
  • Investment purpose
  • Effective date agreed upon
  • Signatures of both/all parties

You as the investor must state what you will provide, how and when the investment will be activated in the contract. Whether funds will be transferred via cash, cheque, assets, or wire transfers should be specified. It is critical to include all details in the contract, no matter how little, to avoid subsequent confusion or disagreements.

When writing your investment contract, consider these steps:

  1. In the first section, list the parties and their titles.
  2.  Legal language like ‘whereas’ and ‘therefore’ should be listed when discussing the investment and asserting the parties agree.
  3.  The agreement should contain titles and sections that summarize past conversations about how the investment will be made.
  4.  After the essentials are completed, the payment terms should be written.
  5. Any applicable milestones should be listed with their due dates.
  6. An unanticipated termination provision should be discussed as well as the start and end dates of the contract.
  7. Contact information, legal jurisdiction, and signatures your concluding elements.

FAQs

What percentage do film investors get?

Depending on the agreement, usually, the film’s investor’s share is around 50% of the total net proceeds of the sales revenue of the film.

What are the different types of investment contracts?

  1. Stock Purchase Agreement: This type of contract may be simple to create and understand its terms but requires a lot of documentation since it is for investments that are not publicly traded.
  2. Non-statutory Stock Option Agreement:  This type of contract is made when investments are sought by investors or workers within a company.
  3. Statutory Stock Option Agreement: This type of contract refers to an incentive stock option agreement between investors.
  4. Convertible Debt Agreement: This type of contract allows an investor to loan money to a company and be repaid later or the company will gain ownership interest.
  5. Convertible Note: This type of contract is a short-term debt that can be converted into equity in the company they are investing in. An investor can loan money from the company in exchange for shares in the company’s assets.
  6. Royalty, Commission, or Revenue Percent: This type of contract is more for individuals who do not wish to have ownership of the company itself but would rather invest in its profits or products.

How do movies make money?

Movies earn revenue through the following methods:

  1. Ticket price revenue from theaters
  2. Sales revenue from merchandising products
  3. Sales from overseas markets
  4. Streaming, video-on-demand, television rights, and DVD sales revenues

Once you’re done drafting the agreement, make sure to review and check if there are any grammatical or spelling errors or even wrong or inaccurate information that was accidentally included. Discuss the contract first with your potential investor and be truthful and open about your film project while at the same time, persuading them to invest in your project. If you manage to convince them to invest in your film project, congratulations! Your film project will finally come to life and get seen by the public.  To help you get started making the investment contract, download our free sample templates above to use as your guide!

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