Artist Entrepreneur

What's the difference between the Artist Entrepreneur program and the Comprehensive Artist program? The Artist Entrepreneur program essentially replaces the Comprehensive Artist program but is designed to have increased flexibility for eligible activities during the program year. Funding can be applied to a suite of activities including production of sound recordings, marketing of sound recordings, domestic and international touring and showcasing, and publishing. Applicants may apply to any or all of these activities.

Who is eligible for the Artist Entrepreneur program?

This program is open to Canadian artists rated 3 and/or Platinum Album Certified artists who control their masters, copyrights, and/or touring rights, and who are making significant investments in the activities related to the rights they control. (FACTOR's definition of Platinum Certified - domestic sales of 80,000 units or more, and/or worldwide sales equaling 200,000 units or more, of any one release from the past 5 years prior to the first day of the current program year including stream-equivalent albums).

I previously hit FACTOR's artist lifetime funding maximum. Recently I've started to experience a lot of activity in Germany, which is a new market for me. I'd like to take advantage while things are still hot - but I need support to make that happen. Can I still apply?

Please contact the Artist Entrepreneur program administrator to discuss your specific situation.

What's the difference between owning and controlling rights as it applies to my eligibility in the Artist Entrepreneur program?

Funding in the Artist Entrepreneur program may only be provided to the party that controls the rights related to the activity for which funding has been requested. For example, if you are signed directly to a record label but control your touring rights you may apply for tour and showcase funding but not sound recording funding.

I own my masters, but have signed a licensing agreement with a record label, can I still apply to the Artist Entrepreneur program?

Yes, though in this circumstance, one may apply only for touring and showcase support.

Do I need to be releasing a new album to apply?

You must have an active sound recording to apply for any portion of Artist Entrepreneur funding. A recording is considered by FACTOR to be Active when it has been released within 2 years prior to the first day of the current program year or will be released within six months of the first day of the following program year. The active sound recording does not have to be a right you control, if applying for say touring and showcase, but an active sound recording still needs to be released within the timelines as an anchor to your activities.

Can I use this funding to record outside of Canada?

Eligible costs are those paid to Canadians and Canadian owned and controlled companies, for goods and services delivered in Canada. If you have a question about possible expenses occurring outside of Canada or with a non- Canadian vendor, please reach out to the program administrator.

Is video production/creation an eligible expense in this program?

Yes. Traditional stand-alone music videos, content videos, animated banners etc. are eligible and considered part of marketing and promotion.

I have already received funding from one of FACTOR's standalone project-based programs this year - Live Performance, or Video. Am I still eligible for Artist Entrepreneur funding?

Yes, any funding you received within the 2023-2024 program year will be taken into consideration when your offer is calculated.

I am currently receiving FACTOR funding; can I still apply to the Artist Entrepreneur program? Please speak to your FACTOR representative for further details.

Artist Entrepreneur 2024-25

• FACTOR Canada
• ARTIST ENTREPRENEUR
• Program Guidelines

Published April 2024

Artist Entrepreneur is a program for Top Tier artists who are significantly investing in growing their business via rights they control such as masters, copyrights, and/or live performances. It complements the Company Envelope program and is designed for increased flexibility for eligible activities and expenses during the program year - aligned with FACTOR's fiscal (April 1 - March 31). The funds in this program are awarded competitively among eligible applicants depending on the committed investment and the available budget.

Program Overview

1. Artist Entrepreneur is a program intended to assist Canadian artists who own and control their masters, copyrights, and/or touring rights, and who are making significant investments in the activities related to growing their audience.

2. Artist Entrepreneur funding is allocated once a year for recipients to undertake a suite of activities fostering the development of the artist and the promotion of their music. These activities can include expenses related to the production and marketing of their active sound recordings, domestic and international touring, including showcasing where applicable. Activities must be central to the development of the Canadian artist, the promotion of their music and the expansion of their audience. Applicant artists can only include activities for which they control the rights.

3. Business plans must separate Domestic from International activities. Markets where further growth has potential will be prioritized. i.e: An applicant may have become successful and profitable enough domestically or in specific international markets and only those markets that offer new audience to be grown will be eligible for funding.

4. Funding for this program is provided by the Individual Initiatives component of the Canada Music Fund (CMF) which aims to increase the diversity of Canadian music artists connecting with audiences worldwide, and Canada's Private Radio Broadcasters. FACTOR's contribution may be up to 50% of total eligible expenses.

5. The minimum investment commitment for this program is $30,000.

6. The maximum funding level per individual artist applicant is up to $75,000, which would require a minimum investment of $150,000 to reach the maximum. Please note that there is no guarantee that any applicant will receive the maximum annual offer.

7. Detailed review of applications will take up to eight weeks from the application deadline.

Application Deadline

8. May 30, 2024, at 5:00p.m. Eastern Time for activities taking place from April 1, 2024 - March 31, 2025.

Artist Entrepreneur 2024-25

20. To apply, applicants must email all of the following documents to: Artist [email protected] a) Completed Application Form (the Excel template is available here for download).

b) Artist Profile - Provide the most up-to-date information for all mandatory sections of the Artist Profile (including Audience and Demographic information) as of the date of application.

c) Marketing Plan and Investment Strategy (PDF) - See detailed instructions on the Application Form.

d) Live Performance applicants are required to submit a tour budget, by territory, as supporting documentation for the total Live Performance investment estimate.

e) Financial statements for the past three fiscal years (PDFs) - Financial statements must be prepared by a Chartered Accountant. FACTOR will accept audited financial statements, review engagement reports, or notice-to-reader/compilation engagement reports.

21. All Applicants should read FACTOR's Business Policies before starting an application.

How Applications are Assessed

22. The funds in this program are awarded competitively among eligible applicants depending on the available budget in the fiscal year (April 1 - March 31) who demonstrate financial need and growth potential.

23. Applicants will be assessed on the following criteria:

The artist's ability to reach and grow audiences, based on both previous investment and current success measured by revenue, artist's proposed investment strategy, relevance and scope of proposed activities, feasibility of the investment strategy (funding history, organizational and financial capacity, feasibility regarding planned expenses, risk, etc.) and expected results.

24. The Artist Entrepreneur program provides financial support for artists' annual investment strategy; the majority of the budget is allocated by its assessment. The budget is divided across the three assessment steps as follows: 20% on revenue, 20% on recent investments and 60% for planned investments.

Assessment Steps:

a) Revenues (20% of the total Artist Entrepreneur budget): the portion of the contribution for this step is allocated based on each artist's eligible net revenues (i.e. net of royalties and fees due to profit sharing partners) in the last three years as a percentage of the total eligible net revenue in the last three years of ALL artists in the program applicant pool.

As an example, if an artist has $50,000 in eligible revenues (net of any amounts owed to profit sharing partners), and the total pool of eligible revenue across all applicants in the program is $4M, that artist would receive 1.25% ($50K/$4M) of the Artist Entrepreneur budget allocated to this step. If the Artist Entrepreneur budget for the program year is $1M, $200K would be allocated for revenue in the program year and as result the artist would be awarded $2,500 or 1.25% of 200k in this step. b) Recent investments (20% of the total Artist Entrepreneur budget): the portion of the contribution for this step is allocated based on each artists' total investments in eligible activities from the most recently completed program year (April to March) Each recipient's amount is based on their portion of total eligible investments of all recipients.

c) Investment Strategy (60% of the total Artist Entrepreneur budget): Amounts in this section are determined by an assessment of each applicant's investment strategy. The investment strategy must provide detail for each activity. These elements will be assessed according to the following elements: Applicability of the proposed activities to the objectives of the Individual Initiatives Component, including international investments in support of the CMF's objective to develop audiences for Canadian artists outside of Canada.

iii.

Relevance and scope of the proposed activities.

Feasibility of the investment strategy (funding history, organizational and financial capacity, feasibility regarding planned expenses, risk, etc.)

Expected results.

Artist Entrepreneur 2024-25

34. Schedule of payments for 2024-2025: After the funding offer is accepted by the applicant, FACTOR will issue 50% of the contribution amount as an advance payment. The next installment of up to 40% of the contribution amount will be issued when the Mid-year Cashflow Report has been received, reviewed, and accepted by FACTOR. The remainder of the funding is paid out when the completion has been received, reviewed, and accepted by FACTOR.

35. To receive FACTOR funding, recipients must submit banking information for direct deposit. The bank account name must appear on the void cheque/Direct Deposit/pre-authorized payment form, and this must match the Applicant name associated with the recipient's file.

Eligible Expenses

36. Eligible expenses are those related to Canadian artists for eligible activities undertaken between April 1 and March 31. The following lists of eligible expenses are demonstrative and are not exhaustive. If you have any planned expenses that are not listed below, please contact the Program Administrator before submitting your application.

37. Sound recording expenses.

a) Artist, musician and backing vocals fees b) Arrangements c) Cover art d) Equipment Rental e) Manufacturing expenses f) Mixing and Mastering g) Producer fees h) Studio fees i) Travel expenses for recording within Canada.

38. Marketing and Promotion, including video expenses.

a) Album release performance expenses b) Digital ads c) Media (advertising and press)

d) Music video and visualizer production e) Posters and graphic design f) Press and other promotional photography g) Radio tracking h) Stylists i) Travel related to promotional performances.

• 39. Music Publishing expenses.
• a) Song Promotion/Plugging/Sync
• 40. Touring and showcasing expenses.

a) Artist, musician, and technician fees b) Visas to perform internationally where applicable c) Backline and other equipment and rigging rentals d) Promotion expenses e) Third-party artist management fees and commissions up to 20% of verified performance income. A statement, invoice or settlement sheet showing commission payable must be provided at Completion to claim this cost f) Third-party booking agency fees and commissions up to 20% of negotiated and verified performance income. A statement, invoice or settlement sheet showing commission payable must be provided at Completion to claim this cost g) Travel expenses (transportation, accommodation, per diems, etc.) Please contact the Program Administrator for specific details.

Artist Entrepreneur 2024-25

G1. 2SLGBTQIA+: A person who identifies as part of the 2SLGBTQIA+ community is someone who identifies as Two- Spirit, lesbian, gay, bisexual, transgender, queer and/or questioning, intersex, asexual or other.

G2. Active Sound Recording: A sound recording is considered by FACTOR to be Active when it has been released within two years prior to the first day of the current program year or will be released within six months of the first day of the following program year.

G3. Canadian: A citizen within the meaning of the Citizenship Act or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act.

G4. Canadian artist: A citizen within the meaning of the Citizenship Act or a permanent resident of Canada within the meaning of the Immigration and Refugee Protection Act.

The term "Artist" refers to an artist solo performer, a musical group or collective. In the case of music publishing activities, an "artist" refers to a songwriter or composer. A group or a musical collective is considered Canadian if at least 50% of its members including the lead singer are Canadians. In the case of an orchestra featuring no principal artist, the orchestra must be based in Canada.

G5. Canadian-owned and controlled company: A company a) that is a sole proprietorship, partnership, cooperative, or corporation established under the laws of Canada or a province or territory;

b) whose activities are based primarily in Canada;

c) whose company headquarters is based in Canada; and d) whose chairperson or presiding officer and at least 50 per cent plus one of whose executives, directors and other similar officers of its Board are Canadian or permanent residents within the meaning of the Immigration and Refugee Protection Act (hereinafter called "Canadians"). Any sub- group of the Board of Directors with decision-making powers (i.e. Executive Committees) that act on behalf of the Board must also consist of at least 50 per cent plus one Canadians. Companies employing employees located abroad must ensure that decision-making and control remain in Canada.

Corporation with share capital: Canadians beneficially own or control, other than by way of shares held only as security, directly or indirectly, in the aggregate at least 50 per cent plus one of all the issued and outstanding votes.

Corporation without share capital: Canadians beneficially own or control, directly or indirectly, interests representing in monetary value at least 50 per cent plus one of the total value of the assets. Partnership, trust or joint venture: a Canadian or Canadian corporation or any combination of the two, beneficially own or control, directly or indirectly, interests representing in value at least 50 per cent plus one of the total value of the assets of the partnership, trust or joint venture, as the case may be, and at least 50 per cent plus one of the executives, directors, or other similar officers are Canadian.

If at any time one or more persons that are not Canadian have any direct or indirect influence through a trust, an agreement, an arrangement or otherwise that, if exercised, would result in control in fact of the firm, the company is deemed not to be Canadian-owned-and-controlled.

G6. Disability: A person with a disability has any impairment whether permanent, temporary, or episodic in nature, or evident or not, that, in interaction with a barrier, hinders a person's full and equal participation in society.

G7. Eligible Canadian sound recording: To meet Canadian content requirements, any recording of an individual track (i.e. a song) or a collection of tracks (i.e. an EP or an album), must meet the following requirements: a) Be performed by a Canadian artist.

b) Have at least 50% of the music and lyrics written by Canadians.

c) Exception for music "repertoire": The music and lyrics criterion does not apply to the repertoire of classical music, traditional jazz, world music, or traditional music. The sound recording must, however, be performed by Canadian artists.

Artist Entrepreneur 2024-25