Raising capital in Music, where to start?

If you’re an artist, management group, label, or festival you may or may not have experience taking on investment. The good news is, there’s a plethora of resources to get you started.

Below are short form examples of several different deal structures that are commonly used by private companies to raise funds that were created by Counsel LLP to facilitate the conversations and transactions applicable to prospective investments. Note that each document applies to the specific corporate structure of the underlying entity, as well as whether the investment is “passive” (only receiving an income stream) or whether the investor is purchasing a share of the target entity and any copyrights or other assets owned thereby.

The following documents are for general informational purposes only and are not intended to constitute, and should not be construed as, Chime or Counsel LLP giving any advice to you or your counterparty — whether legal, accounting, tax, strategic or otherwise. You are not required to use these documents in order to be listed on the Chime platform, and these documents will need to be supplemented by standard formation documents determined by the state of formation, and “long form” versions of the agreements provided that should be drafted with a licensed attorney. Further, you may decide to include only some of the artist’s income streams in the relevant investment vehicle, which may affect some of the language in the disclosure applicable to such streams. We strongly urge you to develop your own investment offering documents in close consultation with your legal counsel. If you need counsel to assist in preparing your offering, please let us know at: support@joinchime.com or info@counselllp.com.

If you’re a management group, label, festival, or artist that uses an LLC or Corp structure:

Corp. Investment Template

LLC Investment Template

Operating Agreement for LLC

Offering Memo + Disclosures

If you’re seeking debt (loan):

Promissory Note

If you’re seeking a profit sharing/passive structure:

Profit Sharing Template