Frequently Asked Questions
General
What are we?
Movie Investor is a ground-breaking crowdfunding platform dedicated to bringing visions and ideas to the big screen. Filmmakers looking for funding are free to submit their projects to us and investors can easily browse our ever growing library of movies. Our platform will revolutionize how movies get made, bringing together film lovers and investors with filmmakers, producers and directors.
Why MovieInvestor.com?
Movie Investor has a large and diverse database on investors from film finance houses and film finance companies to HNWIs and angel investors. All aspects of film finance, including loans, equity and first money are covered. Our highly experienced team of movie industry experts understand the difficulties of financing a film, and are on hand to make your film come to life.
Is MovieInvestor.com planning to offer crowdfunding?
We do have plans to offer donation-based crowdfunding in the future.
Does MovieInvestor.com comply with the securities regulations?
Our movie investment platform is compliant with existing and new securities regulations including longer standing 506 offerings & exemptions, Title II of the JOBS Act allowing for public fundraising (General Solicitation), various SEC No Action letters, and laws governing international securities regulations.
How does MovieInvestor.com differ from similar sites?
Movie Investor has an extensive database of investors ready to invest in projects along with established and talented filmmakers who have been involved with Hollywood blockbusters. Our platform bridges the gap between investors and filmmakers, and is ever evolving to include more of the processes involved with both investing and filmmaking. In time, our site will become more accessible to the masses, by providing donation-based crowdfunding. While other sites often provide just the platform in which to grow or invest, we also provide guidance to both filmmakers and investors. Should filmmakers require it, our industry professionals are on hand to help overcome the challenge of finding investors, securing funds, and maximise the prospect of success on all fronts.
What types of movies do we choose to exhibit?
The movie projects on our site are vetted by our team of industry experts, so only those with strong chances of success are exhibited. The projects’ producers and filmmakers have a strong background in the movie industry and have been involved with well-known titles. Investors can feel confident as all our projects are well packaged, have high quality scripts, and have or look to have established directors, producers and actors involved.
Equity Crowdfunding
What is equity crowdfunding?
Equity crowdfunding allows qualified members of the public to purchase shares or stock, which unlike regular crowdfunding, can have monetary gains. Much larger sums are involved, so the process involves lawyers and industry experts, but with our background and knowledge, we ensure it is as smooth and streamlined as possible. Regular crowdfunding is donation-based, where rewards are received per donation, depending on the size of the donation. For example, for a movie project, smaller donations could be rewarded with keychains, posters or a copy of the DVD, and larger donations with credit, small roles, or red carpet event invitations.
How popular are equity crowdfunding platforms?
From Forbes:
The World Bank estimated that crowdfunding would reach $90 billion by 2020. If the trend of doubling year over year continues, we’ll see $90 billion by 2017.
To put that in perspective, venture capital averages roughly $30 billion per year and in 2014 accounted for roughly $45 billion in investment, whereas angel capital averages roughly $20 billion per year invested.
When crowdfunding started in 2010, a reported $880 million was invested. By 2014, that figure rose to $16 billion and grew even further to $34 billion in 2015. With further Titles being passed through the JOBS Act, allowing for millions of more people to invest, there’s a clear upwards trend which shows no signs of slowing down.
Investors
How do I invest?
After making note of the films that interest you, please contact us for further details on the investment process.
Who can invest?
Both accredited and non-accredited investors can invest. As of October 2015, the SEC approved Title III of JOBS Act, allowing non-accredited investors to invest. However, investors are subjected to the following:
- A company is permitted to raise a maximum aggregate amount of $1 million through crowdfunding offerings in a 12-month period;
- Individual investors, over a 12-month period, are permitted to invest in the aggregate across all crowdfunding offerings up to:
- If either their annual income or net worth is less than $100,000, than the greater of:
- $2,000 or
- 5 percent of the lesser of their annual income or net worth.
- If both their annual income and net worth are equal to or more than $100,000, 10 percent of the lesser of their annual income or net worth; and
- If either their annual income or net worth is less than $100,000, than the greater of:
- During the 12-month period, the aggregate amount of securities sold to an investor through all crowdfunding offerings may not exceed $100,000.
What are the fees associated with film investments?
Please contact us for details.
What type of PPM / Investor documents can I use for my movie deals?
We can assist you with all Investor (PPM) documents and legal counsel. Please contact us for details.
What is an accredited investor?
In the United States, to be considered an accredited investor, one must have:
- A net worth of at least one million US dollars, excluding the value of one's primary residence, or
- Have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year
Filmmakers
How do I submit a movie?
Please contact us in order to submit your movie project. Note that we are working hard behind the scenes to provide a film submission form.
How much does it cost to list my film on MovieInvestor.com?
It is absolutely free to list your film on MovieInvestor.com.
How do I gain investor interest if I am a first time filmmaker?
There are quite a few factors that play into making the most out of your movie page. An intro video goes a long way, and a detailed investment package will help maximise investor interest. A detailed finance package is necessary as well, with similar movies, ROI and a breakdown of the numbers, which our team can help with. Lastly, a fleshed out creative package is also required, with a well-written synopsis, cast wish list, production crew and more details. We are happy to help provide examples to give you a template to work with. Angel Investors can also help with strategies and support for those just entering into the industry, and if they believe in the project enough, can endorse your movie and pass it onto their network of investor contents. Along with our database of movie investors, we also have dedicated databases consisting of Angel Investor contacts.
What are Angel Investors?
Within the film industry, there are various types of investors, one of which is the Angel Investor. An Angel Investor invests with growth in mind, often in the early stages of movie production, pre-production or in particular stages of a small project, allowing them to negotiate for more equity or interest. One good example is Quentin Tarantino’s hit film, Reservoir Dogs, which took off after one of the film’s actors, Harvey Keitel, helped raise $1.5 million. To attract the top talent, create attractive teasers or trailers, or generally create buzz for the movie at an early stage, money is essential and this is why Angel Investors are invaluable in the movie industry.
Besides pure financing, they also provide professional or business expertise, and are sometimes part of a large group of angel investors.
What are the benefits for filmmakers on Movie Investor?
Our platform allows filmmakers to show enough of their movie project to attract investors, without giving away too much information. Once an investor contacts you, a NDA can be signed before giving away further information on the film. We offer flexibility in terms of fund raising, by also allowing for development fund raising before moving onto looking for funds for the entire budget. We can also provide introductions from our network of producers or crew to help build momentum. We also have a pool of scriptwriters who can assist in script development. Looking forward, we have further great plans to expand the platform so more filmmaking and film funding processes are streamlined.
What does the Movie Investor database of investors consist of?
Through contacts and networking, we have developed our database of movie investors to around 5,000 Hedge Fund Managers, 600 Venture Capital Funds, 450 Family Asset Managers and 25,000 High Net Worth Individuals.