Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Paying For A Passion: Finding Investors For Your Next Entertainment Endeavor
Author: Scarinci Hollenbeck, LLC
Date: April 15, 2015
Key Contacts
Back
Recording an album, shooting a movie, publishing a book – whatever the pursuit, one of the most crucial elements is finding investors to fund it.
Finding investors, taking advantage of various funding outlets and researching available capital for entertainment deals are significant parts of working in the business, and knowing how to secure what you need is essential for success. There are a number of ways to ensure you’ve collected enough capital to fund your client’s vision. As a manager, producer, agent or anyone overseeing an entertainer’s career, making sure that the art is paid for is one of your primary concerns.
How to woo investors with an idea
Traditionally, investors are a reliable route for funding various pursuits – not just in the entertainment industry either – think start-ups or even political campaigns. Everyone is seeking someone else’s money for something. There are a few key details for finding an investor. First of all, whoever is behind the project has to show that he or she is willing to do whatever it takes to realize its completion. Investors don’t want to pour money into a project that they don’t think is worth it.
Imagine if George Lucas hadn’t been passionate about his Western set in outer space. Who would have shelled out money for such a crazy idea some 40 years ago had Lucas not been passionate about it? When it’s time to present the ideas to investors, use that passion in order to put more than a script or a few songs on display – use it to illustrate larger concepts and ideas, things that people can really latch on to and get excited about beyond the surface of the project.
One good way to do this is to illustrate the potential for indirect revenue sources regarding the project. For example, if you represent an artist seeking investors to fund the independent recording of his or her album, then mention the potential for concert T-shirt and ticket sales, live appearances at events and more as alternate sources of revenue. The ability to explain that there’s more than meets the eye in terms of return on investment will be huge when trying to attract investors for any sort of project.
Capital collected from the crowd
Another way to raise capital for a project is through crowdfunding. In recent years this method has become exponentially more popular as various musicians, movie producers, artists and just about everyone else use it to fund ideas, from Zach Braff’s Kickstarter-funded movie Wish I Was Here to tracksuits advocating Missy Elliot for president of the United States. Especially if the vision for the project is misunderstood or particularly weird, this may be the place to go, because there are people out there who will throw their money at just about anything. The work comes in reaching out to those individuals and convincing them thoroughly enough.
Legally, this could present some snags though, because generally investors offer their funds with the expectation that there will be some sort of profit in the future. Additionally, parties seeking investment are required to register those securities with state and federal governments. This presents problems, because while there is the potential for some sort of return on investment from a crowdfunding donation, ownership stakes in the company, and the type of return that you can retire off of, aren’t to be expected.
This is why when it comes to crowdfunding, the people offering the money are considered backers. In this case, there is no expectation of profit. A simple reward is enough, the project is completed, the owner maintains ownership and the backer simply knows that he or she contributed to it.
Generally to crowdfund a project, you identify a website through which you can raise capital, put together a concept to attract investors, offer rewards for investing such as credit for the final project or an evening with the artist, and get the message out there.
Whichever way you choose to raise funds for an entertainment deal or project, make sure that the passion for the idea gets across. Eventually, with planning, research and devotion, the money will come. For more on your options when it comes to funding an entertainment deal, seek legal assistance. An attorney can offer you additional information on raising money through crowdfunding, as well as searching for investors.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Paying For A Passion: Finding Investors For Your Next Entertainment Endeavor
Author: Scarinci Hollenbeck, LLC
Recording an album, shooting a movie, publishing a book – whatever the pursuit, one of the most crucial elements is finding investors to fund it.
Finding investors, taking advantage of various funding outlets and researching available capital for entertainment deals are significant parts of working in the business, and knowing how to secure what you need is essential for success. There are a number of ways to ensure you’ve collected enough capital to fund your client’s vision. As a manager, producer, agent or anyone overseeing an entertainer’s career, making sure that the art is paid for is one of your primary concerns.
How to woo investors with an idea
Traditionally, investors are a reliable route for funding various pursuits – not just in the entertainment industry either – think start-ups or even political campaigns. Everyone is seeking someone else’s money for something. There are a few key details for finding an investor. First of all, whoever is behind the project has to show that he or she is willing to do whatever it takes to realize its completion. Investors don’t want to pour money into a project that they don’t think is worth it.
Imagine if George Lucas hadn’t been passionate about his Western set in outer space. Who would have shelled out money for such a crazy idea some 40 years ago had Lucas not been passionate about it? When it’s time to present the ideas to investors, use that passion in order to put more than a script or a few songs on display – use it to illustrate larger concepts and ideas, things that people can really latch on to and get excited about beyond the surface of the project.
One good way to do this is to illustrate the potential for indirect revenue sources regarding the project. For example, if you represent an artist seeking investors to fund the independent recording of his or her album, then mention the potential for concert T-shirt and ticket sales, live appearances at events and more as alternate sources of revenue. The ability to explain that there’s more than meets the eye in terms of return on investment will be huge when trying to attract investors for any sort of project.
Capital collected from the crowd
Another way to raise capital for a project is through crowdfunding. In recent years this method has become exponentially more popular as various musicians, movie producers, artists and just about everyone else use it to fund ideas, from Zach Braff’s Kickstarter-funded movie Wish I Was Here to tracksuits advocating Missy Elliot for president of the United States. Especially if the vision for the project is misunderstood or particularly weird, this may be the place to go, because there are people out there who will throw their money at just about anything. The work comes in reaching out to those individuals and convincing them thoroughly enough.
Legally, this could present some snags though, because generally investors offer their funds with the expectation that there will be some sort of profit in the future. Additionally, parties seeking investment are required to register those securities with state and federal governments. This presents problems, because while there is the potential for some sort of return on investment from a crowdfunding donation, ownership stakes in the company, and the type of return that you can retire off of, aren’t to be expected.
This is why when it comes to crowdfunding, the people offering the money are considered backers. In this case, there is no expectation of profit. A simple reward is enough, the project is completed, the owner maintains ownership and the backer simply knows that he or she contributed to it.
Generally to crowdfund a project, you identify a website through which you can raise capital, put together a concept to attract investors, offer rewards for investing such as credit for the final project or an evening with the artist, and get the message out there.
Whichever way you choose to raise funds for an entertainment deal or project, make sure that the passion for the idea gets across. Eventually, with planning, research and devotion, the money will come. For more on your options when it comes to funding an entertainment deal, seek legal assistance. An attorney can offer you additional information on raising money through crowdfunding, as well as searching for investors.