Tag Archives: investment

Front Money – what it is, how it works

Front Money – what it is, how it works.

What is Front Money?

Front money, or Seed money, as it is often called, is a common first round of capital for a start-up businesses, including many independent films and theatrical projects. It gets its name from the idea that early stage financing plants the seed that enables a small business to grow.

Obtaining funding is one of the most critical aspects of getting your project on the track to production. In fact, many projects fail or are prevented from even starting due to a lack of capital. Although obtaining financing can be difficult for any small business, it is particularly hard for new entertainment ventures. Since these ventures lack a track record, potential lenders and investors are often skeptical about their prospects for success. Nonetheless, the persistent would-be producer, if armed with a sound business plan and the necessary skills, can usually obtain funding for his/her project eventually.

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Why people invest in entertainment

Every week, I speak with producers developing their film or theatrical projects who struggle with the big challenge: finding the financing. In many cases, they’ve come to me as an entertainment lawyer, thinking I have the magic solution. Sadly, I don’t. In fact, most film and theatrical attorneys steer clear of helping clients find the… Continue Reading

Crowdfunding: How to do it right

Crowdfunding: How to do it right Earlier this year, Congress passed, and President Obama signed into law, the JOBS Act, which among other things, legalizes both debt and equity based crowdfunding. Later this year, the SEC is required to promulgate new rules which will allow companies seeking investment capital to use portals similar to IndieGoGo… Continue Reading

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