When artists seek outside investment, properly structuring the investment agreement is crucial to protect all parties. Key elements to consider include defining the investment amount, payment schedule, investor rights, exit strategy, and handling of intellectual property. With multiple examples of artist investment deals available, both artists and investors can better understand standard terms to achieve a fair, sustainable partnership.
Specifying clear investment amount and payment timing
The investment agreement should clearly state the specific dollar amount being invested by the outside party into the artist’s work or project. It is also important to outline an expected schedule for repayment of the investment or a revenue share structure…
Granting limited rights to investors
Investment agreements give certain rights, decision-making abilities, or claims on revenue to the investing party. However artists should limit these rights to only what is necessary so they maintain creative control…
Well-structured artist investment agreements protect both artists and investors by defining the financial relationship and responsibilities each party takes on. Key elements cover the investment amount, payment terms, investor rights, intellectual property considerations, and exit strategy.