Music Industry · Entertainment

How do you structure a fund raising deal for a music album and tour?

Michael Green EVP Business Development and Sales at QuarterSpot

January 28th, 2016

I am working with an artist who is a member of a well know solo artists backup band. He wants to raise money to produce an album and start his own tour. I am not familiar with the structure for fundraising for this type of venture. Do they offer equity in the new band? Profit share? 

Any guidance is appreciated.

Thanks

Ronnie Phillips Economist

January 28th, 2016

If you want to use crowd funding, you should consult Amanda Palmer’s book. She raised over $1 million for an album. The Art of Asking: How I Learned to Stop Worrying and Let People Help by Amanda Palmer Ronnie J. Phillips, Ph.D. rphillip@me.com

Pete Petrin Software Engineer at Onevest

January 28th, 2016

You should also check out Patreon - interesting model.

Donna Mastropasqua Executive Director at First Artist Foundation

January 28th, 2016

i would love to know more about Chime I just met them for the first time last week

Donna Mastropasqua Executive Director at First Artist Foundation

January 28th, 2016

you should check out pledge music, with a big social following you can presale the album to raise money to produce it

Irwin Stein Very experienced (40 years) corporate,securities and real estate attorney.

January 28th, 2016

In the music business the album and tour can be separated.  The album may have value and generate revenue for many years after the tour is over.  You may be able to accomplish what you need with a royalty sharing arrangement for the album. The tour is a business like any other and can be financed as a business using either debt or equity. Like any other financing, the best answer will be based upon the particular facts. If you are thinking about crowdfunding, you should know that only about 30% of the campaigns are successful. It has been a while but I may be able to help you. Feel free to contact me. 

Meira Findel CFO at Four Success Group, Inc.

January 28th, 2016

We Share Crowd Funding allows you to keep 100% of the money you raise unlike Kickstarter who takes a % of your money. Take a look at www.WeShareCrowdFunding.com *Meira Findel* The Holistic Accountant *973-699-2122* *Total Financial Makeover * *I am on a mission to help 1000 people make their dreams come true.* *I have a resource for funding that is amazing. Who do you know that needs capital for a business or a project?* *www.WeShareCrowdFunding.com/FourSuccessGroup * [image: Image result for snoopy happy dance image]

5 * Agents for a TV Channel Franchise

January 28th, 2016

Unless You are a Well Known Come back Act,its not feasible to launch an Album or tour without a solid Record label or Record Contract backing. To do so would be akin to asking for Investment without a business plan. Like every Industry the Music Biz is structured and You have to learn how it works rather than dabble.

Martin Omansky Independent Venture Capital & Private Equity Professional

January 28th, 2016

This is a relatively straightforward, inexpensive legal process. I have been through this sort of thing hundreds of times. Difficulty does not come from structuring and organizing the entity, but comes from identifying and securing investors. Call me at (508) 507-0623. I do not practice law, but can give you guidance.

Meira Findel CFO at Four Success Group, Inc.

January 28th, 2016

Good morning Michael, Through crowd funding there is no equity or profit share. There is an

David Kostiner Managing Partner at Counsel LLP

January 28th, 2016

Hi Donna, I believe you know Mike then. He mentioned a good meeting with the folks at First Artist Bank. Best Dave Sent from my iPad