How much do investors usually get back?

Most investors take a percentage of ownership in your company in exchange for providing capital. Angel investors typically want from 20 to 25 percent return on the money they invest in your company.

How does an investor get their money back?

More commonly investors will be paid back in relation to their equity in the company, or the amount of the business that they own based on their investment. This can be repaid strictly based on the amount that they own, or it can be done by what is referred to as preferred payments.

What kind of return do investors want?

Most investors would view an average annual rate of return of 10\% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average. Some years will deliver lower returns — perhaps even negative returns. Other years will generate significantly higher returns.

Do equity investors receive recoupment from pre-sale financing?

In addition, typically, the equity investors do not receive recoupment from the territories and markets that are subject to pre-sale financing, especially if the Minimum Guarantee (MG) was used to secure a production loan. Therefore, be careful how you do all rights deals.

How does a capital recovery company make money?

Upon obtaining payment and remitting it to the company to which it is owed, the capital recovery company earns a fee for its services. Capital recovery refers primarily to recovering initial funds put into an investment through returns from that investment, making it a break-even measure.

Do experienced investors put all their money in one film?

Experienced investors usually don’t put all their money into one film. They and their financial advisors know that when they diversify, it is possible to reduce their risks somewhat.

Why is there no room at first position for investors?

Since the order of priority of payments is negotiated in advance, if the producers had already negotiated with talent for first position, there may be no room left at that tier for the investor, or in the case of an earlier investor, no room at first position for a later investor.