Artist Investment Agreement

One more thing. If the investor pays for your album budget, try to include the legal fees of someone who can design or verify the investment agreement. A shameless catch. I just received my first angel investment (much smaller than 25k, but still a great start). I wonder where to find other investors. In general, when the investment is made in the next album, the investor will likely be specifically compensated for the album. When an investment is made in the entire artist, the compensation due to the investor can be much larger. In this final piece on MusicThinkTank, Brian Pascoe looks at eight types of music investment agreements and the implications behind them. I am an artist from South Africa who is looking for an investor to help with my music career [email protected] A music investment agreement contains the details of the agreement between an investor who pays money and a musician who receives the money. Steve Gordon is an entertainment lawyer with over 20 years of experience in the entertainment industry, including 10 years as a business director for Sony Music, a lawyer at a law firm representing Atlantic and Elektra Records, and an in-house music advisor for a Hollywood studio. Current and newer clients include entertainment companies such as MTV, Music Choice, Time Life Films and Soul Train Holdings; record labels such as Smithsonian Folkways and Shout Factory; television services such as PBS, Maryland and Louisiana Public Broadcasting; and established and emerging artists, producers, independent labels and managers. Most investors aspire to both repayment and profit.

Generally speaking, this is done in the following way: the investor receives a percentage of the money earned by the artist, minus expenses such as registration fees. This percentage or “return” varies from case to case. However, the level of investment is an important factor in calculating a fair return. At the beginning of their careers, many artists were faced with the decision to take the plunge and quit their daily jobs. But without the constant income to cover hospitality and other expenses, stopping can be a difficult decision. This is especially the case when the artist has no other source of income. Thus, an artist may choose to turn to family members or others to invest money in his career. The investor`s potential overall return is usually limited in one of two ways. First, the return can be limited to an amount equal to several times the investment, usually from 100% to 250%. For example, if an investor invests $25,000, the cap can be several times higher than 100% (for example. B $50,000).

In this model, the artist is free from the obligation to continue paying the investor after the investor has made a profit of 100%. . . .