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What is Equity Financing?

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In this type of financing, a person or company with deep pockets will finance all or part of your film in exchange for ownership of a percentage of the film (equity). This means that from here on out, unless otherwise agreed upon, the investor will receive a certain percentage of all profits generated by the movie. The advantage of this type of financing is that you are not legally obligated to pay back the financier if the film doesn’t generate enough revenue. The down side is that, in success, a portion of your profits will belong to the financier who essentially owns part of your film. 

 

 

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