Becoming an investor these days is easier than before. There are several ways you can invest your money, but one of the best and most unique to invest them in movies. Depending on how much you invest, you can earn back what you shelled out and even gain a good amount of profit if the movie becomes a success.
There are several ways you can approach an investment like this, so let’s break it down:
The One Thing You Need to Invest
It goes without saying you require some money when investing. When people mention investing in movies, the first though is often that it requires hundreds or thousands of dollars. Not necessarily. While bigger productions might require thousands of dollars or even millions, smaller film investments can usually offer a smaller starting investment.
Depending on what’s offered by the film production, some investment opportunities can start for as little as $100 investment. With Hollywood’s old business model being disrupted, you’ll definitely find more companies and indie filmmakers looking to use these new models to get their films made.
Things To Do Before Investing
If you’re new to film investing, it pays to research. Read up and make sure you know what you’re getting into. This is true regardless of the type of investment you’ll be joining. For equity crowdfunding, read up on our articles about it. The more informed you are, the better. For example, SEC-approved campaigns are important to ensure you are entering into a legal investment.
As an investor, it’s your job to decide what kind of film you’re backing; get to know the company as well as understand the process of production. (The latter is especially important if you’re not familiar with film production.) Like with any investment, you need to use smart judgement when investing in a film.
Read the Fine Print
Go through the offer several times and make sure you understand every single thing written on the contract or offer. Legit companies will be more than happy to answer any questions you might have about the investment setup as well as possibility of returns. They will also outline the process, why they’re raising such amount, what are the budgets, target dates, modes of distribution etc.
Aside from that, it’s also important to consider reading through the film project’s synopsis or if there’s a partial script available, also go through it. This will help you understand what kind of film you are backing. Most of the time, if the movie has a great script, it will sell.
Make Sure to Invest What You Can Afford
It’s easy to get ahead of yourself when it comes to investing especially if you see there’s a huge possibility for returns. If you can afford it, then go ahead. But generally, keep it a rule to only invest what you can afford or spare. Films take time to produce and sometimes the projected timetables can be disrupted by unforeseen events.
Be Patient and Trust the Company To Do Their Job
Part of becoming an investor is to be patient in getting back your investments. This is why you need to look through the movie project’s timeline and make sure you can wait it out. As mentioned, the timeline can be longer for films because there can be unknowns. It’s also important to understand the process of filmmaking, from pre-production to post and everything in between.
If you’re ready to invest in a film, here’s your chance! New Dawn Films is looking for investors for an exciting new thriller, An Angry Boy. Armed with a built-in-audience and experience, this is your chance to be a part of something amazing!
Click here “An Angry Boy Film” to visit our SEC-registered Start Engine campaign. If you have more questions about this unique profit-sharing model, feel free to contact us, and we’ll gladly answer your question.