Financing / Crowdfunding : Ask Me Anything (AMA) 1/28 to 1/29 by Viviana Zarragoitia

Excited for your AMA this weekend, Viviana!

Excited about this!

Thrilled to have you here Viviana and thank you for all you do for the Stage 32 community! My question is now that streamers are responsible for the majority of films, how does financing work for a film if a streamer winds up picking it up - what happens to the traditional waterfall?

Wowza! Amanda with a great question! I would love to know that!

Thanks for doing this AMA Viviana! What was your favorite part of Sundance this year? Do you think films that screen in front of a live audience with buyers in attendance (such as at Sundance) tend to sell for more than when buyers receive a link to the film (virtual Sundance)?

What are some avenues I should pursue to obtain financing for my scripts? I have some that likely would be between five and thirty million and some well over fifty million. I have been working on attaching a producer.

Thanks for having an AMA, Viviana Zarragoitia. What are some tips for crowdfunding?

Hi Viviana! Do you have a sample / template of any financial document for film funding you can share?

Hi Viviana, Working on putting a package together now for a horror, what are the top 5 things a producer should know when it comes to talking to the banks for financing? Also, how much money should a producer raise independently before approaching a bank? Last but not least, what qualifications should a producer have before approaching a bank (ie. credit score, etc.) for a loan?

I produce low-budget indies for $500K. I know some states will give tax incentives for films with this low budget, how would you propose the best way to approach funding and loans?

Great questions, everyone! Thanks for the enthusiasm. I'll try to answer in the order received...

Amanda Toney - Great question, and one I have been working with a lot in the past two years. Essentially, when a streamer buys a film, they pay the MG ("minimum guarantee") and it's rare to find overages. The MG goes to repay the senior lender (if there is one) and/or the equity financier. After that, it's hard to see any overages beyond that that would go towards other financiers/participants in the waterfall.

Sam Mannetti - Interestingly enough, I asked buyers the same question this year at Sundance and opinion is split. Some think it makes a difference, others don't. I think it does, as the theatrical experience is irreplaceable, but at the end of the day, a good movie is a good movie is a good movie.

@Lisa Weiss - Considering you're aiming for high budget ranges, I would begin by partnering up with a producer that has made movies in the budget range, as that person will have relationships with studios/distributors/financiers who can come on board your film for that level of investment. You also want someone that has experience producing (and recouping investors' financing) at each of those levels.

@Maurice Vaughn - Crowdfunding is manageable if you have a plan and lots of people to help. The campaigns I have seen be successful have the following: lots of people to consistently post across all social media 24/7, have some financiers lined up before launching the campaign so once it goes live, they donate and the campaign shoots to #1 to create momentum, and a very targeted audience/marking plan. Good luck!

@David Santo - I don't unfortunately, sorry!

@Sasha Thomas - When approaching a bank/lender for film financing, their loan has to be secured by tax incentives, distribution agreements, or sales estimates, so you should have one or all 3 of those items readily available for the bank to review. In addition, lenders only come on board projects once they know the rest of the financing adding up to the budget, less the loan they are being asked to provide, is raised and in the production account. In addition, lenders want to know the ATL attachments on projects, as well as who the main producers are along with their experience. Experience and reputation is more important than a credit score in the film business. Loans for tax incentives at that level are hard to come by, as the margins are quite small, so I would see if an equity investor wants to loan on the credit as part of their investment.

Thanks for the great tips, Viviana Zarragoitia! I haven't heard those things about crowdfunding before. Really helpful!

Viviana Zarragoitia Thank you so much for answering theses questions. Appreciate it!

Thanks, Viviana. I meant other than querying or contests to attach a producer. I can't attend live events at this time due to my health. I am doing my best to network online.

Hi Viviana Zarragoitia - what fantastic insight! Thank you!

Thanks Viviana Zarragoitia! Really enjoyed reading your answers!

Thank you Viviana - appreciate your insight!

Thank you. This is informative.

Thank you for sharing your expertise Viviana!