I've been promising for a while to write some threads about putting together money in a vaccumm.
Here's what I did, a technique I call "Snowballing"
1. I made some money
I got a job filming an event for Hyundai and got paid 10 grand for the shoot. Put all money in bank.
2. I count up my current applicable resources, and add them to the total
several rendering stations, 7k in sound equipment, thousands in 3d models and design templates, etc
3. I go to the first investors and say, I've got 30k into this thing, and will you throw in another 10-20k
They give me the 20k
4. I go to the second set of investors and say, I've got 50k into this thing, you want to throw in another 20-30k
5. I go to the third set of investors and say, I've got 76k into this thing, you want to throw in another 30-40k
So in this way I've gotten up to near 80k based on initial holdings of 10k. I go to another indie filmmaker and say, I have 80k, you have 80k, let's each buy half of a movie camera, knowing that neither of us will use it more than a few months a year. I'm now out actively leveraging that 160k towards raising 300k.
It's super important to note that I go to these investors with properly formatted business plans, show them how I'll repay the money, and cite my sources for them to do reference checks. I'm not running a pyramid scheme, just escalating the external perception of my scale. They have it in writing what I'll do with that money and how it will be repaid.
Another component is cold calling. At some point in your fundraising efforts, you will run out of people you know personally. At this point you'll find yourself wondering who to talk to. No one want's to be accosted by a stranger asking for large sums of money right?
You need to have something to offer them, and then strike up a conversation on their turf. I call every listing in the phone book for cameras, rentals, lenses, studios, production houses, etc. I ask immediately for the head person, and then the secretary says "what is it you want to talk to them about". I say, "I want to talk to them about bringing in 160k in equipment to your operation." That gets me through every time. They basically just want to know that you aren't a Jehovah's witness etc.
Once I'm talking to the owner/president, I make a fair an honest proposal based on the resources I do have. I try to make friends with them, really, not as manipulation. I'll ask them to grab lunch with me, chat a little about making films, etc. About one in 8 times this works, and I've started to make friends with people that can actually be of some assistance. I start doing business with them, keep things fair and don't let them down, and soon I'm developing trust. As these assets and connections build up, my chances of getting into the correct circles increase via introductions, and references. At the same time, I'm squeezing every last drop of income I can out of each piece of equipment I get, and using that income to repay the earlier lenders.
So I've gotten this far, and now have almost a complete set of hardware to begin cinema grade feature production. I'll simply keep my word with all these people, and I'm building a foundation of trust and business ethics that others hear about.
At this point we are going into the real investment search, armed with hundreds of pages of documentation, at all levels of interest. (1 sheet, 3 page, 15 page booklet, 75 page illustrated overview)
I've recruited professional salesmen and internet networking specialists to begin the process of combing the region in an outward geographic spiral, connecting to every serious investment group and known angel investor.
I'll tell you guys how it turns out.
Here's what I did, a technique I call "Snowballing"
1. I made some money
I got a job filming an event for Hyundai and got paid 10 grand for the shoot. Put all money in bank.
2. I count up my current applicable resources, and add them to the total
several rendering stations, 7k in sound equipment, thousands in 3d models and design templates, etc
3. I go to the first investors and say, I've got 30k into this thing, and will you throw in another 10-20k
They give me the 20k
4. I go to the second set of investors and say, I've got 50k into this thing, you want to throw in another 20-30k
5. I go to the third set of investors and say, I've got 76k into this thing, you want to throw in another 30-40k
So in this way I've gotten up to near 80k based on initial holdings of 10k. I go to another indie filmmaker and say, I have 80k, you have 80k, let's each buy half of a movie camera, knowing that neither of us will use it more than a few months a year. I'm now out actively leveraging that 160k towards raising 300k.
It's super important to note that I go to these investors with properly formatted business plans, show them how I'll repay the money, and cite my sources for them to do reference checks. I'm not running a pyramid scheme, just escalating the external perception of my scale. They have it in writing what I'll do with that money and how it will be repaid.
Another component is cold calling. At some point in your fundraising efforts, you will run out of people you know personally. At this point you'll find yourself wondering who to talk to. No one want's to be accosted by a stranger asking for large sums of money right?
You need to have something to offer them, and then strike up a conversation on their turf. I call every listing in the phone book for cameras, rentals, lenses, studios, production houses, etc. I ask immediately for the head person, and then the secretary says "what is it you want to talk to them about". I say, "I want to talk to them about bringing in 160k in equipment to your operation." That gets me through every time. They basically just want to know that you aren't a Jehovah's witness etc.
Once I'm talking to the owner/president, I make a fair an honest proposal based on the resources I do have. I try to make friends with them, really, not as manipulation. I'll ask them to grab lunch with me, chat a little about making films, etc. About one in 8 times this works, and I've started to make friends with people that can actually be of some assistance. I start doing business with them, keep things fair and don't let them down, and soon I'm developing trust. As these assets and connections build up, my chances of getting into the correct circles increase via introductions, and references. At the same time, I'm squeezing every last drop of income I can out of each piece of equipment I get, and using that income to repay the earlier lenders.
So I've gotten this far, and now have almost a complete set of hardware to begin cinema grade feature production. I'll simply keep my word with all these people, and I'm building a foundation of trust and business ethics that others hear about.
At this point we are going into the real investment search, armed with hundreds of pages of documentation, at all levels of interest. (1 sheet, 3 page, 15 page booklet, 75 page illustrated overview)
I've recruited professional salesmen and internet networking specialists to begin the process of combing the region in an outward geographic spiral, connecting to every serious investment group and known angel investor.
I'll tell you guys how it turns out.