Film Financing: You Have An Investor, Now What?
June 4, 2024

Film Financing

You Have an Investor, Now What?

Welcome to the Film Financing Series, where we dive into a comprehensive overview of all things film financing and the regulatory landscape surrounding that world. In this introductory post, we break down the various topics we will be covering throughout the series.

Pitching While Protecting Your Ideas

We will discuss strategies for safeguarding your intellectual property and screenplay during investor presentations, ensuring that your creative vision remains protected.

Debt vs. Equity Financing

We will explore the differences between debt and equity financing in films, providing insights into when each option may be suitable and the contractual implications for both filmmakers and investors.

Essential Investment Documents

We will break down key offering documentation such as Private Placement Memorandums (PPMs), Subscription Agreements, and Copyright Mortgages, their purposes, and how they facilitate the investment process.

Understanding Regulation D and Rules 504, 506(b), and 506(c)

Regulation D is a set of rules established by the Securities and Exchange Commission (SEC) that governs private offerings of securities. For filmmakers, Regulation D provides a framework for raising capital from investors without the need for full SEC registration, offering financial flexibility and administrative efficiency in fundraising efforts. We will break down the nuances of the most notable exemption rules—Rules 504, 506(b), and 506(c), highlighting each rule’s unique requirements, benefits, and the considerations filmmakers must take when seeking to utilize one of these exemption rules.

Navigating Blue Sky Laws

We will then take a look at blue sky laws—state regulations that act as an additional regulatory layer governing the offer and sale of securities. Understanding these regulations is crucial for ensuring full securities law compliance while avoiding legal pitfalls in private offerings conducted with investors residing in your state and elsewhere.

Understanding Investor Perspectives

Finally, we will look into the minds of investors and learn how they assess viable investment opportunities in the film industry. By understanding their motivations and expectations, you can tailor your offering to attract accredited investment.

Be sure to check out each post in the series to learn the specifics and more helpful tips about how to get a film funded. We also have more information coming soon relating to even more topics within entertainment law. And remember, while you can do a lot yourself, it never hurts to have an entertainment attorney on your side. They can save you valuable time and energy when tackling these issues.

Reach out to Ameri Law PC serving Beverly Hills, CA; Orange County, CA; Hollywood, CA; and other geographical locations.