Real Talk About Financing
+ what you can do about the challenges you're facing
Hello everyone and I hope you had a wonderful weekend!
In my last post I addressed whether Industry Events are still relevant or not and since then we’ve had SXSW - a big industry event covering music, film, and tech. Honestly it’s one of the most fun film festivals I’ve ever attended and had the good fortune of premiering one of my films there back in 2017.
Then I read this morning that in an ‘end of an era’ move SXSW decided to reduce the music festival component for 2026. I’m telling you - it’s a sign of the times friends.
But hey - at least the film festival portion was strong! And I always enjoy listening to the replays of SXSW panels from the conference - for those of you who attended, what were some of your favorite panels?
Speaking of film festival panels….
I listened to the replay of one from the Berlinale last month on Film Financing. My issue with these panels sometimes is that they the speakers participate on films at such a high level that there’s often a disconnect between what they are promoting and what’s realistic for smaller films (and most of us).
I will hand it to them though - they really did sincerely try to be of service to those in the room but in most cases, the funds and forms of financing they represent aren’t available to most of us.
When I was first starting out I made the mistake of thinking all these fancy funds and debt vehicles and complex financing instruments were available to me. In fact, they were not. What was available to me was rolling up my sleeves and doing the hard work of raising funds from individuals and developing a network on which to build momentum.
In most cases, these panel discussions represent the upper strata of budgets, packages, and talent when most of us are just trying to cobble together $500K or a couple million and get streaming-level talent attached (and can’t tap into gap financing because we don’t have enough in unsold territories to act as collateral. Just sayin’!) 🤷🏻♀️
One question brought this into sharp focus….
When one frustrated audience member asked whether anyone’s films up there have actually been profitable there was crickets then awkward laughter. Followed by an explanation that film financing is a portfolio business and between sales agent fees, distributor fees, CAMA fees, and the ol’ waterfall none of us will ever see any backend fees so better get paid up front.
Allow me to add a positive spin though….
Keeping Things Small (but mighty) is the answer. 💪
If you adjust your thinking for the time being to keeping things small(er) and doing more yourself vs. introducing multiple middlemen and complexities in the process and staying disciplined in your approach - I actually think you can build a healthy business for yourself going forward.
And over time as you build, you can introduce bigger budgets, more people and partners and yes even middlemen if they make sense. But don’t overcomplicate from the beginning! It will hinder getting off the ground in the first place.
I’m working with clients on rewriting their roadmap.
Delving into alllll the alternative funding models and how to project revenue properly and communicate that effectively to potential stakeholders.
If you’re interested in rewriting your own roadmap for getting a project or series of projects off the ground, email me at stacey@filmspecific.com.
And watch this space as I plan to break down some other financing truisms in upcoming newsletters - addressing everything from the truth about Gap financing to the downsides of stacking too many tax incentives in one project, when bond companies can be helpful, and developing a bullet proof distribution strategy so you can project revenue properly and communicate that to your investors (hint: it does NOT include pie in the sky box office numbers!)
OK over to you - what are some of the financing truisms that have resonated with you recently and what questions do you have?
Let’s discuss down in the comments!
Or take my three question survey and I can respond to you privately :)
Alright everyone, I’ll leave you with that to ponder for today. I hope you have a fabulous day ahead and I’ll speak to you again soon.
//Stacey
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Stacey, Once again, your insights and observations are spot on.
This line from your post - "When one frustrated audience member asked whether anyone’s films up there have actually been profitable there was crickets then awkward laughter." That is the elephant in the room that few experts or panelists ever want to get near.
I tell my indie filmmaking friends, to stop looking for INVESTORS!
You went on further to say, "What was available to me was rolling up my sleeves and doing the hard work of raising funds from individuals"...YES. From individuals!...people who want to help you make your film. Friends, family, your dentist, your neighbor, even strangers. They're buying into YOU, the passionate person who has a story to tell. And pitch your story to everyone everywhere, at all times. And above all, hang out where the money is...casinos, high end bars, wine tastings and culinary events, medical/legal conventions, charity galas and fundraisers. Stop hanging out at filmmaker panel discussions events with other broke-ass and/or unprofitable filmmakers.
I wished there was a handbook with dollar amounts connected to talent that could tell me the value of my film in such and such genre with said actor. Who decides this, knows this? ( I hear it's the distributor or the sales agent, but they won't tell you these things until you do a deal with them) I'm wondering if these "values" are in flux given the current state of the business?