Investor Financing Agreement

Although investors have several options, parties and financial institutions must be considered and represented in each financing and investment agreement. Any agreement should aim to protect investors and creators when they unite for a company in which a project goes from scene to scene or screen. The establishment of a financing and investor agreement for this type of financing or investment must guarantee the protection of both parties. With only one promise of the completed project and the intellectual property associated with it as collateral, the playwright/filmmaker could be looking for the project for the full amount of an unpaid loan. In television, stage or film projects, there are several possibilities for investors who want to contribute. For example, financing and investment agreements are developed and negotiated with an emphasis on protecting an investor`s assets, the investment itself and the borrower`s intellectual property if both parties commit to undertaking a project. Whether it`s a stage program, a TV show, a film or some other creative enterprise, a strong, detailed and cohesive agreement is essential to move forward. Bridge financing, often in the form of loans, comes after regular funding has already taken place. Essentially, these types of loans are used to bridge the gap between what has already been granted or contracted for the project and the total cost. If this is the type of investment, the financing and investor agreement should focus on these three issues to ensure that the investor is aware of the risk/reward of the project and to see how he will report his investment. The entertainment industry is unique, as big risks can pay off in the form of larger rewards.

Financing a creative enterprise can be a major risk if it is independent. For example, an independent film can represent an amazing story, have excellent post-production quality and still have difficulty penetrating mainstream light. This means that all this work, time and money from investors can be recovered in the form of experience and credit, but not in dollars and cents. Experience in this industry is valuable, but if you`re trying to impress investors, it`s often not enough. Contact Hummingbird Law`s Entertainment Law team to help you develop and negotiate your financing and investment agreement. It is essential to ensure that your intellectual property is protected as a creator and that your finances are returned as an investor. If both parties are on one side, each project can proceed smoothly.

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