Finding an investor is a good way to give your music career a good boost.
Music is a business and you ultimately have to earn yourself an income so you can sustain yourself and grow as a brand.
Before you actually start seeking out an investor it is important to understand that having someone invest in your business means you’ll be giving away a piece of your business.
The investment will come at a cost and you’ll have to assume that cost and be willing to accept it as part of the ordeal.
Therefore be sure to negotiate a good contract that has terms of service that can allow you to stay true to your art while pursuing the business side of things.
Let’s look at who can give you funding for your music and how you can find them
Angel investors don’t necessarily have to be a big company or major corporation.
An angel investor could be a family member, friend or complete stranger with good finances willing to invest in your music.
These kinds of people are usually people that know or have invested in the music business before and they may be looking to pass on their knowledge and help a start up.
A music angel investor could also be somebody that just has a passion for music and investing in your music could be a great way for them to get involved in the music industry.
Provided the musician has a solid business plan, an angel investor can easily front them with cash and a door of resources.
How to find angel investors for your music:
Close to home
The first place anyone would start is with family members.
There may be a lot of people willing to help you with resources to get your music career to the next step and them being family is an added advantage because they want to see you become successful.
Friends that can manage to help you funds for your music start up can also be a great angel investors.
So before you go off and start looking for investors try and talk to some family members and provide them with your business plan,
walk them through it and see whether they are in a position to help you or not.
Networking is another great way of meeting an angel investor.
In this case you have to network with a lot of people, especially local businesses.
The goal here is to make connections with people that are running businesses and are also active investors.
Set up meetings with these kinds of people and make sure to have your portfolio ready along with your business plan.
The good part is that business owners that are not willing to invest in your business can point you towards someone who can.
Networking is never really a loss even if you don’t get what you want because it introduces you to people who can easily become referrals and send some interested people your way.
It’s not always that angel investors will operate on their own, sometimes they have a syndicate with them.
One that allows them to not assume all the risks that come with business.
Therefore it is your job to seek out such people, meet with their syndicate, build connections and see where things go from their.
You can do some research in the area where you live on syndicates or people operating together as a network.
Once you find somebody that is part of a network, you can have a meeting with them and they can be the opening you need to meet the entire network and discuss your music business proposal.
While looking for investors physically is great, let’s not forget the power of the internet.
You can basically scour the internet for angel investors because there exist alot of websites that match investors with entrepreneurs.
Some websites you can start with are:
This is a great website and one of the go to websites for entrepreneurs who want to add some weight to their brand by linking up with investors.
Funded.com has over 6000 funding providers so you basically have a lot of options here.
Reach out to as many investors as you can and purchase your ideas.
Seed invest is a New York based equity crowd funding platform that allows access to all entrepreneurs looking to find funding and investors to help them pursue their business.
Angel list is another great platform for people looking for funding for their start up.
Venture Capitalists will invest in start ups and in already running companies that need outside funding to help them grow.
If you intend to work with a venture capitalist, it is a good idea that you do your research and look for the ones that have had some investments in the music business.
Be aware that venture capitalists look for good high risk fast cash and will do their best to work with start ups that show promise of growth in the future.
How to find venture Capitalists
Look no further than the music business
You can start looking for a Venture Capitalist to invest in your business by looking no further than the music business.
Venture Capitalists that invest in the music business will not be that much of a long list and you can basically reach out to people in the music industry for some names of the venture capitalists that have a reputation for investing in the music space.
This can be a great way to get the names of Capitalists that actually have music industry experience,
plus you can get a good idea of how they operate by looking for people that they have worked with and getting their opinion.
Do some research
It’s not uncommon to have venture Capitalists in your area or community.
Sometimes a good way go find them is simply doing your research and looking into them.
Look for the familiar brands within your community, you can do this by doing through your directory or business listings.
This can also be done via location based google search.
Once you find some venture Capitalists you can make a list of them and start working on a method of approach.
Some people prefer the cold phone call or cold email but if they are in your community then you can simply drive up to them and see if you can get a meeting.
Just as discussed with angel investors, venture capitalists can also be sort out via the internet too.
Some of the great ways to actually to scour the internet for venture capitalists is:
1. Subscribing to venture capitalist blogs can be a great way to always stay on top of things.
There are a lot of blogs run by venture Capitalists as a way of actually promoting their business and their brand awareness,
this is also a great way for them to actually meet some entrepreneurs and business owners.
2. Another great way of finding venture Capitalists online is by using social networks because they are known to use social media as a means to promote their business.
You can also work up a business plan and reach out to the arts councils for funding.
Most countries have funding bodies for the arts such as music.
Arts councils are a great way to find funding because they are known to work with businesses of all sizes,
therefore you don’t have to worry about being a small musician, they can help.
Seeking a major record label is another great way to get funding, though record deals are more partnerships than investor type deals.
The best way to go about this is building up a good track record and buzz for your brand and then reaching out to record labels.
This is the most common way that musicians get funding and a way to push their progress upward.