How to Find Music Investors. Finding people to invest in your music may not be as challenging as you might think. Once you've proven your passion for your music and played for your friends a few times, finding investors can be as easy as asking fans and friends to donate toward your upcoming CD project. Explaining to others what's in it for them and offering incentives down the road is always helpful.
Play your music in a public location. Look for any venue that will take you on as a regular performer. The amount you expose yourself to the public is up to you and your time availability.
Start an email sign-up list at every one of your shows. Email updates about where you'll be playing. Make sure you also have an accurate list of all of your friends, relatives and any contacts you've made throughout the years.
Do the math on how much money you need and what every dollar will go toward. Be realistic. Your friends, family and fans don't want to pay for your $25 steaks while you take time off work to record a CD for three months. Make a time line for how long you'll be in the studio and all related costs.
Invite everyone to a large enough location to hold the expected amount of guests. Tell them you're embarking on a new business adventure and you'd like to share it with them and get their input. Expect most people to not show up.
Share with everyone either in person or through a follow-up email your intent to release a CD of your music and your present and realistic need to create the album.
Create an incentive program to get people involved. For starters, anyone who contributes $20 gets a CD. You can work all the way up to you performing at a house party or offering to list them as producers on the CD cover. You determine the amounts and find the appropriate "reward" for their investment.
Unfortunately, you can't tell people their donations are tax deductible. But you can say it's towards a good cause.