Here's A Hard Lesson: Some Investors Suck—Cut Them Loose

Save yourself the time and effort.

Mike Rekola

Oct 23, 2024

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From the Office Cubicle.

Wednesday, October 23rd

Hey Filmmaker,

Let’s get one thing straight: not all investors are created equal.

And honestly, some of them suck.

That’s right—I said it.

Some can empower your creativity, while others can stifle it, making you question your project, your vision, and even yourself.

Knowing when to walk away from a bad investor is essential, and it can save you time, money, and peace of mind.

Here’s what you need to know about spotting the red flags and finding investors who will support, not sabotage, your work.

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So There I Was…

So there I was, sitting across from an investor in a dimly lit office, hoping this was it.

I was pitching my project—a story I’d poured my heart into.

They seemed perfect: credentials, connections, and the money to get things rolling.

As I wrapped up, they started giving feedback… based solely on my logline.

They wanted script changes that would gut the soul of the story without even reading the full script.

Still, I pushed through and, against my better judgment, accepted their promise to invest.

But then came the delays and the excuses: they were “renovating their house,” or their “lawyer needed more time.”

Two years of “almost” getting funding later, I realized the hard truth—they were never going to commit.

Walking away wasn’t easy.

But when I did, I found real investors who respected my vision and wired funds the day they promised.

So, filmmaker, learn from my experience.

Don’t let bad investors drain your project’s lifeblood.

Some investors aren’t worth the time, no matter how deep their pockets seem.

Why Some Investors Aren’t Worth Your Time (and How to Spot the Red Flags)

Not every investor wants to help you succeed on your terms.

Some are more interested in controlling the project, others are indecisive, and some just don’t respect your creative direction.

These investors can jeopardize your vision, delay your project, and put you in a constant state of uncertainty.

Here are a few major red flags to watch for:

1. Constantly Questioning Your Vision

Constructive feedback is a normal part of the filmmaking process, but if an investor can’t stop pushing for changes that fundamentally alter your project, take it as a warning sign.

The right investor respects your creative decisions and believes in the story you’re trying to tell.

If they’re already demanding extensive changes without fully understanding your vision, it won’t get better over time.

Consider the 2012 film Cloud Atlas.

When directors Lana and Lilly Wachowski pitched it, they faced skeptical investors unsure about the film’s ambitious structure.

Rather than compromising the film’s complex narrative to satisfy financial backers, the Wachowskis chose to work with those who believed in their unique vision.

2. Unrealistic Demands for Control

An investor who wants excessive control over creative aspects, especially if they lack film industry experience, is a red flag.

Demanding final cut rights or control over key decisions can limit your freedom to tell the story as it’s meant to be told.

Investors should act as supporters, not micromanagers.

The Social Network director David Fincher reportedly avoided working with investors who demanded creative control over the film’s narrative, allowing him to portray the story with an unbiased lens.

Choosing creative freedom over meddlesome backers can be critical to a project’s success.

3. Slow to Commit

If an investor drags their feet on contracts, meetings, or financial arrangements, it’s often a sign that they aren’t fully on board.

A committed investor understands that time is precious in filmmaking and won’t keep you waiting around.

If they constantly come up with excuses, walk away.

Indie filmmakers often face this issue.

Instead of spending months chasing down uncertain backers, Kevin Smith self-financed Clerks by maxing out credit cards.

Though risky, this move allowed him to make the film without waiting for unreliable investors.

4. Playing Financial Games

Some investors like to nitpick budgets, demand unfeasible cuts, or backtrack on agreed-upon terms.

If an investor constantly questions the budget, it’s often a sign they’re not serious or looking to squeeze more value than they’re willing to pay for.

You want someone who values the budget as part of the project’s overall success.

In the production of Whiplash, director Damien Chazelle faced funding challenges but opted to work with investors who trusted his vision.

These investors knew the budget was tight but supported him anyway.

Finding investors who respect the project’s financial needs makes all the difference.

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How to Find Investors Who Truly Support Your Film

So how do you find those rare investors who will genuinely support your vision? Here are some steps to connect with the right people:

1. Leverage Your Network

One of the biggest assets in filmmaking is your network.

Talk to other filmmakers, producers, and actors who’ve worked with investors.

Word-of-mouth recommendations can lead you to investors who have a track record of being supportive, professional, and reliable.

2. Be Clear About What You Want

When you pitch, be upfront about your vision and what you expect from investors.

This clarity helps you set boundaries from the beginning.

Investors who appreciate your transparency are more likely to respect your creative freedom.

3. Don’t Settle

Desperation can be tempting, especially on tight deadlines.

But remember: it’s better to wait for the right investor than to compromise with someone who could derail your work.

The right investor will come with patience and persistence.

For the indie film Moonlight, director Barry Jenkins waited for the right people who believed in his vision.

He partnered with A24, a company known for supporting creative freedom.

The film went on to win the Academy Award for Best Picture.

Why It Matters: How Bad Investors Can Derail a Film Project

Choosing the wrong investor can have far-reaching consequences. Here are the major reasons why working with the right investors is critical:

Protects Creative Integrity: The wrong investor can compromise your story, while the right one respects it.
Saves Time and Energy: Committed investors will move forward without unnecessary delays.
Preserves Budget Integrity: Supportive investors respect the agreed-upon budget, allowing you to focus on production.
Ensures Mutual Trust: Good investors act as partners, making it easier to collaborate productively.
Reduces Stress: The right investor relationship means less time wasted in negotiations and more time spent on creating your film.

Final Thoughts

Filmmaking is a labor of love, passion, and dedication.

With the right investors, you can bring your vision to life without compromising your values or creativity.

But remember, some investors simply aren’t worth the hassle.

If they constantly question your choices, stall commitments, or want excessive control, it’s a signal to walk away.

Trust your instincts and choose investors who believe in both you and your story. With the right support, your project will shine the way it’s meant to.

Cheers,