Sample Music Project

Sample Music Album LLC
Burbank, CA, United States

The Pitch

Here is a sample deal for a music project. Many of our artists are looking to raise capital for their next EP or full music album. This is the opportunity for you to partner with your favorite music artists and potentially see a financial return. For each offering, we conduct due diligence on the artist and the project. However, this does not guarantee that the project will be successful and will return a profit.

Check Out Artist’s Spotify

Term Sheet

Fundraising Description

Round type: Regulation CF
Investor Ownership: Depends on the artist’s historical numbers and project raise size
Typical Round Size: $25,000 - $100,000+
Type of Security:
Royalties A royalty is a contractual right to receive a percentage of revenue, such as a percentage of total sales of a product or overall revenue of the project or company. A royalty can be based upon net or gross sales, contain a cap on the total amount you receive back as a return on your investment or be subject to certain liens. It is very important that you understand the terms of the royalty before investing. There is no guarantee that you will receive a royalty payment and the royalty may expire without any investment return or result in the complete loss of your investment. An investor who receives a royalty is not a shareholder and therefore has no voting rights or other rights of a shareholder. Transfer restrictions may prevent you from assigning or selling your royalty to a third-party and there is no guarantee that a market will ever develop for you to sell your royalty interest.
Duration of Investment: 3 - 5 Years
Minimum Investment: $10.00

Payout Structure

Investors will recoup their initial investment first. All remaining royalties will be we split between investors, the artist, and other parties pro-rata (according to shares owned). After the length of the deal is over, investor royalty rights are returned back to the artist.

Investor Perks

Timeline

Deal FAQs

How do you determine the total royalty percentage listed in the offering?

The total royalty percentage being offered depends on, but is not limited to the artists’ historical streaming numbers, the size of the raise amount, and where they are in their career. Emerging artists may offer more royalty percentages to reward investors with more potential upside than more established artists.

Why does the duration of my investment only last 3-5 years?

Typically, most albums and EPs’ digital streaming and download royalties come within the first few years. Additionally, there are financial costs each time payments are made to investors. To maximize investor returns and minimize financial costs, we limit the time length of the deal.

How does the project make money?

For most deals, you are investing in the digital mastering rights for a given music project. The major digital platforms include Spotify, Apple Music, YouTube, etc. Typically, these platforms pay the master holders $3-$7 per 1000 plays. As an investor, you are getting a portion of these royalties based on your ownership stake pro-rata (according to shares owned).

What am I actually investing in?

You are investing in the royalty rights for a project. A royalty is a contractual right to receive a percentage of the overall revenue of the project. For music deals, you will be earning a portion of the project’s overall revenues.

When/ how do I get paid?

When the creator’s project earns revenue, you will receive an annual royalty payout starting a year after the release date of the project. You will typically hold these royalty rights for 3-5 years depending on the specific terms of the deal. This distribution will be sent directly to the bank account you added to your Stampede Live account.

What due diligence does Stampede Live conduct on potential offerings?

Stampede Live vets ALL of our offerings to make sure that:
1. No creators are bad actors (bad actors are people who have committed anti-money laundering or violated Reg CF requirements). All of our creators will attempt to produce their projects to the best of their ability.
2. Creators have experience developing projects in their field, increasing the odds of their next project’s success.
3. Creators have a business plan with a path to profit.

What payment system do I use to invest?

All payments will be made through your bank account. During the investment process, you will enter your bank account information (bank account number, routing number). If your transaction is approved, your investment amount will be subtracted from your bank account balance.

Meet The Musician

default user image

Artist Name

Music Artist

This is the artist’s bio

$0.00

Raised Of $25,000.00 Goal

Days 194
Hours 04
Mins 47
Coming soon
Royalties Security Type
N/A Type of Security