Turning yourself into a successful musician is going to cost a lot more money than you might imagine. Even if you’re the best songwriter in the world or play the guitar like nobody’s business, you’ll have to invest a nice chunk of change to get your music career off the ground.
One of the ways to fund your musical dreams might be by bringing an angel investor into the mix. They can supply you with the money you’ll need to make it big in the music world.
So, what is an angel investor? Well, they’re essentially a person with plenty of money in the bank who doesn’t mind parting ways with some of it to help you reach your goals. And they can be hugely helpful to a struggling musician looking for their big break.
Here are seven tips that you should keep in mind when considering working with angel investors.
- Start by Trying to Find Reputable Angel Investors in Your Area
There is no shortage of angel investors operating throughout the U.S. right now. According to the Angel Capital Association, there are more than 300,000 of them.
After finding out the answer to the question, “What is an angel investor?”, you should make every effort to learn more about the ones that are set up in your general area. Talk to those in the music industry around you about which angel investors might be worth your time.
Finding angel financing might take you some time to do. But you should be able to locate at least a few worthwhile angel investors in your city.
- Look for Angel Investors Who Specialize in Working With Musicians
Angel investors are known to invest their money into all kinds of different things. If they believe that they can make money off something, they won’t hesitate to put some money behind it.
That being said, you should try to focus on working with an angel investor that has a history of funding those in the music industry. The music industry is a lot different than, say, the restaurant industry, and they should have some understanding of that.
It also helps for musician investors to have a strong interest in music in general. It’ll make them more passionate about potentially putting some of their money behind you and your musical pursuits.
- Make Sure an Angel Investor Believes in You as a Musician Before Working With Them
If you’re lucky enough to find an angel investor that’s interested in the idea of funding you, you should ask them what it is about you that intrigues them the most. It’ll give you an indication of what makes them believe you could be something special.
You don’t want to work with someone who isn’t going to be your No. 1 fan. The last thing you need is for them to start questioning your judgment when it comes to your music later on.
The thing about angel investors is that they do want to see a return on their investment. So they’re going to stay on you about keeping your music career moving in the right direction.
But they shouldn’t try to take you on a path that you’re not comfortable going down. They should be content with allowing you to dictate the direction in which your career goes because they believe in what you’re doing from the beginning.
- Be Aware of the Control You’ll Be Giving Up by Working With an Angel Investor
While your angel investor should allow you to take the steps that you want to take after investing in you, they’re also going to be indirectly controlling you to some degree.
Once you take money from an angel investor, you’re going to feel at least a little pressure to grow as an artist. This might mean taking some risks in an effort to increase your commercial appeal.
Make sure you’re comfortable giving up some control of your career. If you’re not, it could lead to you and your angel investor butting heads before long.
- Get On the Same Page With an Angel Investor in Terms of a Long-Term Vision
Where do you see yourself in one year? Five years? Ten years?
It would be good to discuss both your short-term and your long-term vision with your angel investor. It’ll give them some idea of what to expect from you in the coming years.
If you want to remain independent for the rest of your career and they want you to be signed to a major record label within the next two years, it could present some problems. Getting on the same page will be important for both of you.
- Agree on What an Angel Investor Will Be Entitled to When You’re Successful
An angel investor isn’t going to give you a bunch of money out of the goodness of their heart. They’re going to do it in the hopes of making money off your successful career later.
This is all well and good. But just how much of your money are they going to be entitled to at some point down the line? That’s the question you should ask them early on in the process.
Far too often, angel investors and musicians clash over how much money the investors deserve once the musicians strike it rich. You want to have some kind of agreement in place to prevent this from happening with your angel investor.
- Prepare to Keep in Touch With an Angel Investor as You Move Forward
After an angel investor gives you the money you need to take your music career to the next level, they should get out of your hair. They’re not going to take an active interest in your day-to-day operations.
But they will expect you to keep them up to date on any progress you’re making with your career. And you should be prepared to provide them with updates early and often.
Make it a point to touch base with them every now and then to tell them what’s going on. It’ll keep them in the loop and prevent them from having to track you down.
What Is an Angel Investor? It Could Be the Key to Your Success
Now that you know the answers to the questions, “What is an angel investor?” and “What do angel investors do?”, get out there and see if you can find one.
The right angel investor could be the key to you launching a successful music career. They’ll set you up with the funds you need to make your mark on the music industry once and for all.
Read the other articles on our blog to find more great advice for musicians.