The Boathouse
07/02/08, 09:58 PM
Hey,
This is weird. A guy came and saw a show that my band was playing. We've been getting a great response from the middle-aged crowd, as well as teenagers, younger kids, etc. We pretty much span across the age groups without much trouble. Anyway, the guy is pretty wealthy, lots of clout in this area, blah blah. He's extended an offer to function as an angel investor for us, giving us the funds to record our album, tour, get our stuff together and all that jazz. The deal would be that he'd get a 10% return on our profits. That's profit, which only exists once we've broken even, of course. I've known the fellow for many years, so I know he's an upstanding guy. It's an interesting offer to have made.
Just looking to see what people think of the scenario. Obviously, he's hoping we get famous, returning his investment and making a great deal of money on it. 10% isn't much if we make 100$, but it is if we make a million, or more, over time. I can see WHY he'd do it, despite the high risk, etc, etc. There really aren't any loopholes or fine print attached, it sort of just is what it is. It's a shot in the dark taken with a whole lot of hope and confidence on his part. If it doesn't work, the money's lost, but at least the chance was taken, is where he stands. Input?
This is weird. A guy came and saw a show that my band was playing. We've been getting a great response from the middle-aged crowd, as well as teenagers, younger kids, etc. We pretty much span across the age groups without much trouble. Anyway, the guy is pretty wealthy, lots of clout in this area, blah blah. He's extended an offer to function as an angel investor for us, giving us the funds to record our album, tour, get our stuff together and all that jazz. The deal would be that he'd get a 10% return on our profits. That's profit, which only exists once we've broken even, of course. I've known the fellow for many years, so I know he's an upstanding guy. It's an interesting offer to have made.
Just looking to see what people think of the scenario. Obviously, he's hoping we get famous, returning his investment and making a great deal of money on it. 10% isn't much if we make 100$, but it is if we make a million, or more, over time. I can see WHY he'd do it, despite the high risk, etc, etc. There really aren't any loopholes or fine print attached, it sort of just is what it is. It's a shot in the dark taken with a whole lot of hope and confidence on his part. If it doesn't work, the money's lost, but at least the chance was taken, is where he stands. Input?