Black Creatives, Non-Black Investors

3 Things to Strongly Consider Before Signing on the Dotted Line

Everybody has a vision, and for most, if not all, those dreams come with a price tag. Historically, Black creatives have often found themselves on the outside when it comes to accessing the capital needed to bring their visions to life. However, recent years have shown a growing willingness among non-Black investors to take Black creatives and their work seriously.

Yet, as with many things, cultural biases exist on both sides of the racial divide. Ignoring cultural implicit bias does no one any favors—acknowledge it. They may be suspicious of you, and vice versa. Navigating the space between creatives and investors can be tricky.

More often than not, Black creatives have struggled to secure the necessary funding. So, how do we navigate this new era of interest in our productions while maintaining control and avoiding legal jeopardy? It’s a challenge, but here are three crucial considerations if you’re approached by or seeking out investors for your company or project.

1. Craft YOUR Plan Honestly

When an investor shows interest, it’s easy to get caught up in the possibilities. However, the most important piece you need to have ready is a solid business plan.

I know—it sounds daunting. But think of it simply as a “plan.”

This strategy should outline how you intend to achieve your desired outcomes for the project. It should be well-thought-out and serve as a template for how you will execute and distribute your production.

However, it’s vital to approach your plan from a realistic perspective to save yourself a world of heartache. If you don’t have a direct connection to A24, for instance, don’t include the illustrious production company in your plan.

Your plan is YOUR plan. Ensure that every part of it is something you can realistically execute within the budget you’ve outlined. Cutting corners here sets you up for failure and exposes you to risks if your presentation inaccurately depicts your capabilities, leaving you vulnerable to breaches and disenfranchised investors.

During this early stage of your production, it’s wise to include compensation for yourself. The eagerness to “get the film done” should not overshadow the need for a sensible budget that accounts for your work and time. Many of us tend to leave ourselves out of the budget in favor of others, but this isn’t the best approach. You are the most important part of the production, and you deserve to be healthy and financially secure as you accomplish your goals.

2. The Paperwork is King

Most experienced investors are well-versed in the process of constructing legal documents to formalize investments. Be clear: if you don’t have the funds to pay a lawyer to create these documents, the terms will rarely—if ever—be designed in your favor.

These documents will serve as the governing body of the business you and your investor are operating under. An experienced investor knows how to structure these documents in a way that mitigates their risk and, often, leaves you vulnerable.

What you discuss doesn’t matter. What’s on paper does.

The first thing you should do is hire—or find a pro bono attorney. If you can’t afford one or find someone competent, the responsibility falls on you. Utilizing resources like friends, AI tools, and legal libraries can be beneficial if used wisely.

A good practice is to take two highlighters of different colors and print the document. Highlight everything you understand in one color, and everything you don’t in the other. Anything that needs clarification should be re-written in formal agreement.

This is key.

Judges and juries can interpret words, but most will lean into the text as it’s written. If you encounter an investor who refuses to renegotiate in good faith or rewrite the document to match your understanding, you’re likely dealing with a predatory investor.

Once the document is fully understood and highlighted in one color, you should feel more confident about signing.

3. Trust Your Gut

On the surface, this might seem impractical, but it’s as true as anything.

Life has informed how we perceive things that are funny, joyous, and inspiring. The same can be said about danger.

If you speak with anyone who’s had a bad investment experience, they’ll almost always tell you their gut told them something wasn’t right.

However, we tend to ignore these feelings when the potential outcome is prioritized over present circumstances. But be cautious—momentary wins can have serious consequences if we ignore the natural signs of danger our gut provides.

You know the saying: All money isn’t good money.

If someone approached you for an investment once, there’s something about your work that attracted them. Trust that the right investor will come along.

You have power. Use it.