EQ

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How does the deal work?

At EQ we believe in deals that support a creative's growth. Our deals are simple, fair, and all share the same basic principles:

  • We invest money in creatives on a gross revenue share basis
  • We have no ownership or influence over an artist's music or output
  • All of our deals are contractually limited by time and amount

Our Deal Philosophy:

Creatives get to decide the right deal terms for them. This means that as a creative you choose the revenue streams that we will be investing in. It also means that you choose the percentage of revenue share that is right for you.

If you do well, we do well.

Our Deal Terms:

The length of our deal together and the minimum hurdle-rate return (explained below) are calculated based on a combination of your annual revenue, the size of the investment you are looking for and the percentage of revenue that you are willing to share in return every year.

Deal Calculator

$100,000
$1,000 $200,000
24%
5% 100%

Term Length of Agreement

the number of years that the deal will be in place for

5 Years

Hurdle Rate

the amount of money paid back to investors that will end the deal if not met within terms

$140,000

An example of how the deal might play out

You have an annual revenue of $100,000. You need an $100,000 investment to record and market your third album. Looking at your returns and budget, you feel that you can afford a 24% revenue share for this deal.

With these selected inputs the deal you chose is:

Investment $100,000
Annual Gross Revenue Share 24%
Term Length 5
Hurdle Rate $140,000

Scenario 1 - Fast Success for You

If after those 5 years, we have made back our original investment of $100,000 + $40,000 or more through the annual revenue share deal that you chose, we will finish our contract together, and you will be invited to approach us for a new investment.

Scenario 2 - A Slower Burn for You

We understand that sometimes it can take time to build up creative revenues. If after 5 years (deal term length) we did not make our minimum return hurdle rate of $140,000 through the annual revenue share, then our deal contract simply continues until we do. It could take a couple more years to get there together but that's okay. We don't believe in pressuring an artist to pay us back at the end of the deal term. We know artists have bills and lives to lead. We want to work with an artist, win together, and this means being patient as they grow.