Finding Investors

[Anonymous]

i need advice on finding investment/venture capital. I have 3 projects I want to do that will raise $$ for charities, and 3 which are for-profit and have major national potential. Anyone have luck finding investors?

[Anonymous]

It will be hard to sell the non-profit projects as an "investment." I’d suggest going to your local visual arts association to pitch the projects and get their advice on how to locate grant funds. They would be a 501C not-for-profit organization that obtained the grant money. Then, they would turn around and "contract" with you to provide the service. This way, you’d get the money to perform the jobs but you’d have to play by whatever standard rules they have.

Regarding the "for-profit" endeavors, you’ll need to create business plans for each project that outline the project, your costs, your projected revenues and what type of deal you plan to offer the investor(s). An investor will want to know how much money they need to invest and how much equity they get in your company/project or what your exit strategy is. The bottom line is that if you can show someone on paper how you can turn their money into a profit for them, you’ll get the money. Just be careful who you choose for partners and be sure to dot your i’s and cross your t’s. Investors typically don’t have a lot of time so you’ll want your presentation to be flawless. Otherwise, they will write you off and move on to the next prospective investment.

Good Luck!

Kris Simmons
http://www.MindYourVideoBusiness.com

[Anonymous]

You could start by visiting http://www.GuideStar.org and after getting a free account, typing in the name of your city to see how many groups are listed. After studying what they say they do for the community you’d have their contact info if you wanted to go further.

Your public library "may" have a grants section, or grants online at their computer lab. Make up a proposal or "letter of inquiry to see if you are interested in this idea" and get it to prospects. Usually, it is VERY easy to get a local "community foundation" in your area to act as "fiscal sponsor" should you be fortunate enough to get someone willing to give you a grant. But you’ll have a large list of prospects from GuideStar.org to play with.

The grant funds goes to your sponsor, who you’ve negotiated a fee of up to 4% of "cash" received. Then you find someone willing to give them the grant. You’d 1st have a "memorandum of understanding" with your "fiscal sponsor" saying what will happen IF you get the grant. Getting equipment money is a similar process.

Your local yellow pages may have a section on film related or editing – wedding services. You’d contact them and ask who they know who you should talk to about investing. You "could" offer them 1% finders fee for a signed deal with their connections.

If I were you, I’d locate a non-profit and let them get some credit for your project, for working with you. Some are listed online and haven’t done anything in a while so you’d call the shots.

Write to me if you have additional questions:

[ARichards]

This first piece of advice I have to give is to NEVER use the words "inventor" or "investment" when soliciting backing unless your solicitation has been submitted and approved by the Securities and Exchanges Commission. While I no longer hold any finance licenses, I was at one time licensed and registered with the SEC. Using these terms is something the SEC frowns upon and will fine heavily as it could be considered fraud. While you aren’t selling stocks or bonds, you are soliciting an "investment opportunity," and as such, whenever you mention the words "investment" or "investor," you must at once offer an investment prospectus to the potential client at the time of contact. You might think that none of this applies to a filmmaker, but trust me, it does.

To circumvent this potential problem,simply substitute words such as "backing," "funding," or "financing" in your fundraising presentation.

[Author]

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