One of the many struggles of becoming an independent musician is not getting enough funds to establish your music career. This is true especially when you are still not generating enough income for the needed expenses - rehearsal space, outfits, travel expenses, publicists, graphic designers, upgraded equipment, and the list just goes on. Everything just seemed to have a price. And as much as you would like to juggle multiple jobs at a time while working on improving your craft, that as we know, is hardly possible. So what are the other ways to get your music funded aside from getting a job, applying for a loan, crowdfunding, and sponsorships?
This is when investors would come to the picture.
Investors take risks in providing you funds because they believe you have great potential so it is important that you prove to them that you are that person. Just like investing in any other business, they expect a Return of Investment.
What are the types of investments that you as an independent musician should know?
Check these out:
Angel Investors
Also known as private investors or Seed investors, they are individuals that provide financial support to startups most of the time, with their own money. They can be family members or friends, wealthy individuals, groups, or even crowdfunding. Angel Investors can be considered as one of the choices that you can consider in getting your funds as their focus is on you taking your first steps. They usually provide one time investments to help kick start your career. These people are willing to take risks and are experienced in the business. They, however, play a great role in making business decisions.
This means, taking your chance to have complete control over your career.
Venture Capital
One way for musicians to get music funding is called Venture Capital. They are private equity investors that provide funds to companies including starting musicians who exhibit great potential in exchange for an equity stake. Venture Capitals are willing to put up investment believing a significant return of return in case you as musicians will succeed in the future.
Advantages:
- A lot of Capital
- Publicity and Exposure
- Building your Team
- Connections
Disadvantages:
- Control of your music
- Ownership
Major Record Label
A record label can help establish a musician’s career by providing him a team of experts who they think would be best for the artist. This is probably why a lot of artists are wanting to get signed. But before you decide to put that in your musician’s bucket list, let’s take a look at the pros and cons of getting signed by a record label.
Advantages:
- Wider access to Promotional Outlets
- Production Costs
- Reputation and Influence
- Implemented marketing Strategy
Disadvantages:
- Less profit
- Limited Creative Control
- Transfer of copyright ownership
Art Councils
Art Councils are government or private non- profit organizations that promote arts by providing funds, organizing events and other means to support the artist. They are great sources for music funds as they’re willing to support just about anyone and sometimes would provide grants instead of loans so you don’t need to worry about paying the money back.