Indie funding, short for independent financing, refers to the financial support or resources that independent individuals or small groups seek to offer self-produced or published projects. Our work uses the term to describe independent artists, musicians and music artists, filmmakers, game developers, and writers not backed by major corporations or traditional funding sources.
Indie funding is challenging but can truly pay off. Many creators compete for the available funding, but there are also many avenues to get that funding. We can help you decide what indie funding methods to pursue and how to design the most compelling pitch. But first, it’s essential to know a little about the possible sources of indie funding.
Common Sources of Indie Funding
These are the more common types of indie funding. We can help with all these, sometimes just providing you with information and steering you in the right direction, which is a free service.
Indie Funding Through Bootstrapping
Self-sufficient bootstrapping is when individuals use their savings or resources to finance their projects. It’s a common approach for indie creators, especially when starting small. Bootstrapping often includes getting money from friends and family. While riskier, Loans and personal financing is an avenue some independent creators might take to fund their projects when their funding or friends and family are unavailable.
Indie Funding through the Crowd
Crowdfunding platforms allow creators to raise money directly from their audience or supporters. They often offer rewards or incentives in return for financial contributions. Crowdfunding can also involve giving away some equity in the project or taking out debt you pay back to the crowd. The wonderful thing about crowdfunding as a method of indie funding is that the crowd becomes a large group of supporters who might mention you on social media and to their friends.
Grants, Sponsorships and Brand Partnerships
Some independent artists and creators apply for grants from government agencies, nonprofit organizations, or private foundations. These grants can provide funding for specific projects or ongoing work. Sometimes, creators can also secure sponsorships or partnerships with brands or companies that align with their content or audience. In some cases, indie funding can involve product placement, where you feature a larger company’s product at your concert, in your work, or as part of your game.
Angel Investors and Venture Capital
Independent creators may seek out angel investors willing to invest in early-stage projects in exchange for equity or a share of future revenue. One drawback to using angel investors is that the creator may lose some control of the project, but the amount that some angel investors can put in is often quite significant. While less common for indie projects, some startups and tech-focused indie ventures do secure venture capital funding, although this often involves giving up equity.
Less Common Sources of Indie Funding
The following are some less common but still potentially fruitful sources of indie funding. Many of these types need to be combined together or with the indie funding sources listed above. 
Self-Publishing and Sales
For authors, musicians, and game developers, self-publishing and selling their work directly to consumers through platforms like Amazon site, Bandcamp website, or Steam store can generate income. In fact, sometimes self-publishing at first can lead to going toward one of the more traditional routes above – self-publishing builds a small audience who decide they want to provide more support. It also gives the creator examples they can use to attract more significant funding.
Pre-sales and Pre-orders
Creators may offer pre-sales or pre-orders of their work to fund its development. This is common in the gaming industry, where developers provide early access to their games in exchange for upfront payments. It can also work in music as well. Some indie creators also sell merchandise related to their work, such as T-shirts, posters, or limited-edition items, to generate additional income.
Revenue Sharing Indie Funding
For example, in mobile app development or web content creation, creators may share revenue with platform providers, like app stores or content hosting websites. Revenue sharing can also work with arts, where the funders receive some percentage of the creators’ revenue. This is often similar to debt funding in that the investors get paid a certain percentage until they receive a certain amount of total return.
These additional means of getting the indie funding you need can often augment your main funding source. This can be attractive to investors who like the idea that new investors will not dilute their own investment.
Indie Funding Tips
Here are some tips to give yourself a better chance at getting the indie funding listed above. This is, of course, not a comprehensive listing, but these are some of the primary tips and tricks we often share:
Indie Funding Tip 1: Build a Strong Online Presence
A compelling online presence can attract attention and support. Utilize social media, blogs, and other platforms to showcase your work, connect with your audience, and potentially attract investors. Ask family and friends to do the same, and as you get initial investors, they may agree to do this as well. It can be helpful to make a specific pitch to others about how to do this – what to say and how to say it – so the message is uniform and powerful.
Indie Funding Tip 2: Combine Income Streams
Consider multiple revenue streams to support your project. You may need to combine the approaches above to get the funding you need and to develop the best strategy.
Indie Funding Tip 3: Diversify Income Streams
There are some ways to attract funding that is not directly related to your project. This might include selling merchandise in past projects, licensing your work, or offering workshops related to your creative field. Podcasts and other forms of media may bring income as well. Of course, you must balance the choices of different funding opportunities with the time they may take away from the current project.
Indie Funding Tip 4: Budget Wisely
Develop a detailed budget for your project, outlining all expenses, and then look for creative ways to save on those expenses. This is where we and other consultants may be able to help by identifying opportunities you may not be aware of.
Indie Funding Tip 5: Stay Persistent
Securing funding can be challenging, especially for indie projects. Be persistent, stay motivated, and be willing to adapt your approach based on feedback and changing circumstances. Refer back to this and other lists for a backup plan if you do not initially get the funding you need. Remember, combining multiple funding sources can often be more effective than relying on a single method. Each project is unique, so tailor your funding strategy to your specific goals and audience.
Conclusions and How We Can Help
It’s essential for indie creators to carefully consider their funding options and choose the one that best aligns with their goals, audience, and resources. The choice of funding method can significantly impact the creative freedom and long-term success of their projects. In many cases, the sources of indie funding listed above are combined or used in succession to make sure that the project gets the funding it needs.
We can help! Our services are designed to help indie artists get the funding they deserve, and many of our services and our initial consultation are free. Contact us any time.
