DallasPA Posted March 4, 2004 Share Posted March 4, 2004 Vesper, I wish you luck. just be smart and grow eyes in the back of your head. I've been the pointman in 3 start-up labels in the last 15 years, and every time either the investors or my close business partners screwed me. The last label was such a mess I just threw my hands up in the air and walked out, while the artist was getting radio air play, and product was shipping to the distributor. Lastly, find someone you can trust to oversee the artist, producers, and studio on a day to day basis. You will definitely have your hands full dealing with business end. Last thing you want to do is be the one getting calls when an artist gets kicked out of their apartment, or can't pay they're electricity !!!!! Good Luck Dallas http://TrilogySound.com Reading, PA Link to comment Share on other sites More sharing options...
Duddits Posted March 4, 2004 Share Posted March 4, 2004 Originally posted by vesper: Why do you think I should take the deal?First, you're talking about VC not a record deal (as in Puffy's case), and you would not only not be precluded from developing Puffy-like distribution and promotion deals with the majors, but encouraged. The additional capitol would enhance your likelihood of making these additional and important relationships happen. Second, 50% of a profitable business is better than 100% of an unprofitable one. Third, I know I'm just a cat, but I don't believe this is a sincere thread. I don't believe it, no I don't! I don't I don't I don't. If anything, my guess is that you are conducting some sort of focus group or experiment of your own, and from the "other side." You are more likely a consultant or investor than a producer or engineer. I must tell you, however, that as a cat, I tend to be wrong about most things (the longterm effects of catnip, you know), and am probably way off base. Certainly, if you've invested $350K in a studio, you have a website. Please provide the link and prove me wrong. A link would also help us provide more useful advice. Mmmmmmeeeeeeeeooooooow. Dooby Dooby Doo Link to comment Share on other sites More sharing options...
DallasPA Posted March 4, 2004 Share Posted March 4, 2004 Hmmmmm, A cat thats an Alien, I loved Dreamcatcher and Duddits. I realized that he is doing a VC deal, and I definitely wasn't advising Vesper to or not to take the deal. Just wanted to give him some things to think about since the music business is still the music business. Mr. Gray go Away, I duddits!!!!!! Great Movie-but i do like offbeat stuff Dallas http://TrilogySound.com Reading, PA Link to comment Share on other sites More sharing options...
Duddits Posted March 4, 2004 Share Posted March 4, 2004 If you liked the movie, you'll love the book. It's really way better. Dooby Dooby Doo Link to comment Share on other sites More sharing options...
vesper_dup1 Posted March 5, 2004 Author Share Posted March 5, 2004 Originally posted by Duddits: Second, 50% of a profitable business is better than 100% of an unprofitable one. I've considered that position greatly. Third, I know I'm just a cat, but I don't believe this is a sincere thread. I don't believe it, no I don't! I don't I don't I don't. If anything, my guess is that you are conducting some sort of focus group or experiment of your own, and from the "other side." You are more likely a consultant or investor than a producer or engineer. Believe Me, THE DEAL IS REAL, and it's gonna happen, too. Not at 50/50 but it's gonna happen. I've met with the key players in the group six times in two weeks. Just finished a meeting about 30 minutes ago, and the financial resources offered just increased. Plus, they are willing to negotiate the key terms. I have found out that protectyion of the investment is more important than the percentage of ownership for these guys. Capitalists? Yes they are. Greedy? No. Therefore, we are negotiating the strength of their position on the Board of Directors as well as specific financial transaction policy. Not Just Busy, But About The Business Link to comment Share on other sites More sharing options...
Duddits Posted March 5, 2004 Share Posted March 5, 2004 Then I was right the first time -- you have already decided to do the deal. I know I may just be a cat, but I believe that VC interest in record companies is often as much for prestige as it is for profits. Dooby Dooby Doo Link to comment Share on other sites More sharing options...
vesper_dup1 Posted March 5, 2004 Author Share Posted March 5, 2004 Originally posted by Duddits: Then I was right the first time -- you have already decided to do the deal. Actually, I hadn't decided to do the deal. I had decided that it was wise to investigate the opportunity further, and to exercise due dilegence by assessing their true interest level by testing to see whether a modification in terms was even possible. Not Just Busy, But About The Business Link to comment Share on other sites More sharing options...
Duddits Posted March 5, 2004 Share Posted March 5, 2004 Well good luck. And do what your gut tells you. Dooby Dooby Doo Link to comment Share on other sites More sharing options...
Groovepusher Sly Posted March 5, 2004 Share Posted March 5, 2004 Vesper, Your most valuable asset is you, and to me it sounds like you've undervalued yourself. Up to now you have stated your value as $0.00. Your STUDIO, EQUIPMENT, and ARTISTS are worth approx. $350K, but your value and your products potential should be worth at least 5 times that much ($1,750,000.00). This may explain why your investors want 50%, or your company. Their initial $750 will instantly go to $1,625,000!!!! And they will own half of your ass. Maybe as a LLC you could state their percentage of profits, and keep them out of your hair while you do what you do best. You built the whole thing, and evidently did an execellent job of it. That's why they want to invest WITH you. Take the money, do right by them, but don't UNDERVALUE yourself. Adjust the percentage of ownership they want (down), by the percentage you increase your companies value. Just a thought. Sly Whasineva ehaiz, ehissgot ta be Funky! Link to comment Share on other sites More sharing options...
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