On my last day at Cannes, May 24, I stumbled onto an area in the sprawling Palais des Festivals called "Short Film Corner." This was a one-stop shop for everything related to getting a short film made and distributed. I was lucky enough to sit in on a very informative presentation by financier Matthew Helderman of BondIt Media Capital in which he explained exactly how not just short films, but films in general are financed these days.
Helderman explained that many independent films are financed through what can be described as a pie with four equal slices:
- 25 percent private equity, which means individual investors who either outright donate or put money into a film's budget expecting a return on their investments.
- 25 percent raised through pre-sales to foreign markets.
- 25 percent in tax credits from government agencies that offer rebates to movie productions that film in their regions.
- 25 percent in "gap financing" - as in any kind of financing that will fill the void of the money that hasn't yet been raised, such as a bank loan.
Filmmakers often like to focus solely on the creative side of making movies, but the reality is that most investors are looking to turn a profit, Helderman said.
"Be prepared for zero returned phone calls until you have something that can make them money," he said. "It's becoming investment banking in the media space."
One alternative, Helderman added, is to structure your film as a 501(c)(3) nonprofit entity. That way, investors can simply write off the funds they contribute as charitable donations.
But, of course, this means that filmmakers have to make peace with the fact that they won't be able to make money off their movies.
"Not every film is a for-profit venture," Helderman said.
Helderman offered the following advice for independent filmmakers who want to do business with studios, production companies and finance companies like his:
- Before approaching a company to fund a film project, raise at least 30 percent of the film's proposed budget on your own through private investors. This will convince companies that you're serious, have the capability to get people to invest in your ideas and that you're willing to do the work and take on some of the risk yourself.
- Research films that are similar to yours, find out who produced, financed and distributed them and try to set up meetings with those people so you can pitch your idea to them.
- "Under-promise" and be transparent about what you can and can't do with everyone you deal with, including cast, crew, producers and investors.
Helderman also recommends that filmmakers do their best to distinguish themselves from the competition by coming up with unique concepts and marketing strategies.
"Your audience has a million places they can put their time," he said. "How do you differentiate yourself? You find a niche, build a brand."
For filmmakers who are looking to make a name for themselves by making short films, Helderman's company BondIt offers grants of up to $20,000. To apply and for more information, visit https://bondit.us/grant/.
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