10 Things Investors Look for in a Film Project

Investing in a film can be both exhilarating and risky. For filmmakers seeking funding, it's vital to understand what professional and private investors scrutinize before committing their money.

From my experience at First Flights, I've learned that investor expectations vary dramatically depending on the type of project. With shorts, investors are really investing in the filmmaker since these projects don't typically generate revenue. The only exception is when an investor is cash flowing a tax credit, where they focus on whether the filmmaker can competently handle accounts and administration so the credit gets filed correctly. For features, it's different. Investors want to see how and when they're going to get a return, not just trust the filmmaker.

Here's an expert breakdown of the top 10 things investors look for in a film project, followed by real-world insights, FAQs, and a real example.

1. A Compelling Script and Concept

The script is king. Investors almost always request a finished, professionally written script—this is the project's foundation and must showcase marketable potential, originality, and strong emotional or commercial hooks.

2. Experienced Production Team

Investors check who is behind the film. They look for a team with successful credits, as in proven producers, directors, and crew, to ensure the project is in reliable hands and can be executed within scope and budget.

When we've cash flowed tax credits at First Flights, we've had to do careful due diligence on the filmmaker and producer, making sure all paperwork is in order before moving forward. This experience showed me how differently investors treat shorts versus features, but in both cases, the competence of the team is paramount.

3. Marketable Talent Attached

Name actors or reputable directors greatly increase a project's credibility and potential return. Talent attachment signals to investors that the industry believes in the film, reducing risk and boosting market appeal.

However, if it's a genre film such as action, horror, or sci-fi, named actors are not quite as important as the concept can carry the film. Genre audiences often prioritize compelling concepts and execution over star power.

4. Realistic and Detailed Budget

A thorough and professional budget is essential. Investors need to see transparent cost breakdowns, prepared by seasoned line producers. Have a one sheet ready with above and below the line costs, as well as a link ready to share to a comprehensive budget. Anything less than a comprehensive budget (often 25–60 pages) raises red flags.

5. Clear Revenue Model and Distribution Strategy

How will the film make money? Investors want concrete distribution plans, whether for theatrical, streaming, digital, or festival circuits, and must be convinced there's a path to revenue and a plan for recoupment.

This is where the biggest difference between shorts and features becomes apparent. Features require detailed waterfall structures that show exactly when investors will be repaid once money starts flowing in. Investors scrutinize these waterfalls carefully to understand their position in the recoupment chain.

6. Legal Chain of Title and Rights

You must own or otherwise control the rights to your script and all involved materials. No investor will commit to a project with murky intellectual property rights or potential legal disputes.

7. Attractive Investor Deal Structure

Investors want to know how returns are handled. A common practice is the "120 and 50" model: investors first get 120% of their principal back, then split 50% of all future profits. Some projects use different splits, but the takeaway is that the deal must reward investors adequately and transparently.

8. Evidence of Comparable Success

Potential backers want precedents. Film decks often include comparable titles—movies with similar budget, genre, or cast—and their box office or streaming results to demonstrate commercial potential.

9. Risk Management and Tax Incentives

Investors look for ways risks have been reduced: completion bonds, insurance, government tax credits (like UK SEIS/EIS), or pre-sales. These protections make for a safer investment vehicle.

10. Professional Marketing and Packaging

A well-prepared pitch deck, business plan, and marketing materials (sizzle reel, poster, synopsis) show professionalism. Quality packaging indicates a serious producer committed to transparency and success.

The biggest advice I'd give filmmakers is to tailor their pitch deck with the investor's perspective in mind. That means presenting a clear budget, a realistic distribution plan, and showing exactly how and when the investor will see their money returned. Filmmakers often pitch passion and story, which matters, but for investors the money piece has to be front and center.

Real-World Example: "Love Sarah" (2020)

Filmmaker Rajita Shah famously attached sought-after talent to her independent project "Love Sarah" by writing personalized letters and constructing a compelling package, which included market comparisons, transparent budgeting, and a strong distribution plan. This helped secure both actors and investors, proving the efficacy of professional packaging and focused investor materials.

Common Questions & Answers

Q1: Do I need an actor or director attached before seeking investment? A: While not always mandatory, having marketable talent attached greatly increases your project's appeal and likelihood of funding.

Q2: Is a business plan necessary for film investors? A: Absolutely. A detailed business plan, outlining the budget, revenue strategy, distribution plan, deal structure, and market comps, is essential.

Q3: Can I find investors without finished legal paperwork? A: No reputable investor will risk money on a project lacking chain of title, option agreements, and all necessary legal clearances.

Q4: What's the typical profit split for film investors? A: The industry norm is the "120 and 50" model: 120% recoupment, then 50% profit share, although this varies by project.

Q5: How long before investors see a return? A: Most deals anticipate at least 3–5 years before returns are possible, sometimes longer for independent or festival-driven films.

These criteria may seem exhaustive, but they reflect the realities of a highly competitive, risk-prone business. The more you anticipate and address these investor concerns, the better your chances of securing the crucial funding to bring your story to the screen.