Top 10 Underground Horror Movie Success Stories

Top 10 Underground Horror Movie Success Stories

Welcome to WatchMojo, and today we’re looking at ten horror movies that came about through amazing underdog stories.

#10: “Shelby Oaks” (2025)

Critics talk a big game, but very few have the guts to make their own movie. One of the greatest success stories in the history of YouTube, critic Chris Stuckmann announced in 2021 that he would be directing his first “proper” movie, a supernatural mystery called “Shelby Oaks.” Funds were largely derived from Kickstarter, and the project would later raise over $1 million. Big-time filmmakers took note of the underground story and provided Stuckmann with some valuable feedback, including David F. Sandberg and Mike Flanagan, who came on as a producer. The money was put to good use - “Shelby Oaks” was acquired by Neon and has received a positive reception from critics. We will almost certainly be seeing Mr. Stuckmann behind the camera again.

#9: “Eraserhead” (1977)

David Lynch conceived of “Eraserhead” while studying at the American Film Institute in Los Angeles, with some speculating that he was influenced by the birth of his first child, Jennifer. The AFI provided some funds, but the money quickly ran out, forcing Lynch to receive donations from his own friends, family, and cast members. Lynch himself even started delivering newspapers to raise money for the movie and often slept in the converted stable that was used for filming. And since they couldn’t afford proper crew members, Lynch took on a jack-of-all-trades approach, also working as set designer, painter, carpenter, and sound designer. Filming took an agonizing five years, but at the end they had “Eraserhead,” and Lynch’s incredible career was born.

#8: “Talk to Me” (2022)

Another great horror movie, another YouTube success story. Twin brothers Danny and Michael Philippou found popularity under the name RackaRacka, producing a number of viral videos like “Harry Potter VS Star Wars.” With an obvious talent for filmmaking, the Philippous expanded their ambitions and moved away from YouTube to produce their first movie, a supernatural horror film called “Talk to Me.” The movie was a huge hit, becoming A24’s highest grossing horror movie ever with $92 million at the box office. It was also a huge hit with critics, earning rave reviews for its original concept, virtuosic filmmaking, and practical effects. It went on to win the Saturn Award for Best Horror Film, and the Philippous found themselves a nice corner of Hollywood stardom.

#7: “The Evil Dead” (1981)

Before “Evil Dead”, there was “Within the Woods.” The short film was used as a proof-of-concept, with Raimi and his childhood buddy Bruce Campbell hoping to attract the attention of financiers and make a full-length movie. Some minor interest was generated, but Raimi and Campbell also begged friends and family for cash. Money in hand, they moved to the cabin - literally. Not only did it serve as cramped lodging, but it was also a nightmare to film in, with the cast and crew suffering its lack of plumbing and heat, and sometimes even burning furniture to stay warm. Campbell humorously called the shoot “twelve weeks of mirthless exercise in agony”, but still, he made the freaking “Evil Dead.”

#6: “Saw” (2004)

These days, everyone knows James Wan and Leigh Whannell. But that was not the case in 2003, when they were just another group of ambitious up-and-comers. The creative duo had the genius idea for “Saw,” but not the money. So Whannell put up $5,000 to make a proof-of-concept short film, which showed him stuck in the now-famous reverse bear trap. In fact, the scene is basically a shot-for-shot concept of the Amanda scene. The short attracted the attention of producers, who gave the duo $1 million to fund their movie. It ended up grossing many times that, making $104 million at the box office, spawning a gigantic franchise, and making the successful careers of both Wan and Whannell.

#5: “Paranormal Activity” (2007)

It’s amazing how much mileage you can get out of some footsteps and slamming doors. Director Oren Peli knew this, and he set out to make the ultimate ghost movie. The original production was filmed for just $15,000, with the main actors receiving $500 each and Peli shooting the movie inside his own house. He also decided to shoot the movie on a handheld camera, eliminating the need for a professional camera crew. Following some good test screenings, the movie was picked up by Paramount, and the studio gave Peli more money for reshoots and post production. “Paranormal Activity” ended up grossing nearly $200 million, making it one of - if not the - most profitable film ever made.

#4: “The Texas Chain Saw Massacre” (1974)

Tobe Hooper was inspired by the economic and political turbulence of the early 1970s, and he set out to make a gritty film that mirrored the country’s turmoil. He conceived of “The Texas Chain Saw Massacre” and co-wrote the screenplay with Kim Henkel before receiving $60,000 from his producer friend Bill Parsley to make the movie. Actors were meagerly paid, like John Larroquette, who was given pot instead of money for his opening narration. The movie was later picked up by Bryanston Distributing Company and screened as an afternoon matinée. Despite its miniscule budget, the movie was a huge hit, grossing over $30 million and helping to kickstart the slasher genre. And lest we forget Leatherface, who would quickly develop into a horror icon.

#3: “Night of the Living Dead” (1968)

How do you make one of the most influential horror movies of all time? Shoot it for pennies, do basically everything yourself, and buy lots of chocolate sauce. George A. Romero and his partners at Latent Image scrapped together $114,000 and filmed in a dilapidated farmhouse that was scheduled for demolition. Chocolate syrup was used as blood, costumes were bought at thrift stores, and organs were cheaply sourced from a local butcher. Zombies were just locals who wanted to have some fun, and Romero did mostly everything himself, including editing and shooting the movie as DP. Despite the DIY shoddiness, “Night of the Living Dead” became a massive hit, grossing millions worldwide and launching Romero’s career - not to mention the zombie genre.

#2: “Halloween” (1978)

The original “Halloween” is one of the most famous examples of doing a lot with a little. Producer Irwin Yablans asked John Carpenter to make a movie about babysitters being killed, mainly because the idea was cheap. Carpenter agreed on the condition that he’d have full creative control. The director was forced to get creative, writing the score himself, filming in an abandoned house, and renting equipment. Perhaps most famously, the now-iconic Michael Myers mask was just a Captain Kirk mask they bought from a Hollywood costume store for $1.98 and painted white. Despite the small budget of about $300,000, “Halloween” grossed $70 million and received rave reviews, with many of its iconic elements born not out of luxury but sheer budget-driven creativity.

#1: “The Blair Witch Project” (1999)

Get three young actors, throw them in the woods for a week, and you have movie magic. The actors were given a small outline of their characters’ motivations but were otherwise encouraged to improvise. They were also left to their own devices in the woods, being instructed to hike to certain checkpoints with a GPS. And filming was sheer fly-by-night - for example, the camera was supposed to capture a figure in the famous tent sequence, but it didn’t go as planned and they were forced to just go with it. Regardless, “The Blair Witch Project” was an unbelievable success (thanks in large part to a genius marketing campaign), and by grossing nearly $250 million, it became one of the most profitable movies ever made.

Do you know of any other big movies that came from low beginnings? Let us know in the comments below!