Company Envelope: Top-Tier

By mmuise
Description:

Company Envelope: Top Tier is allocated once a year for a recipient to undertake a suite of activities fostering the development of Canadian artists and the promotion of their music so they can build sustainable careers. This can include expenses related to the production and marketing of Canadian sound recordings, domestic and international touring, showcasing and concert production of Canadian artists, artist management, publishing of Canadian musical works and business development. The activities must be central to the development of several Canadian artists, the promotion of their music and the expansion of their audience.


Comments on Funding:

The maximum funding level for individual companies is up to $600,000; affiliated companies are capped at $800,000.

Deadline: January 18, 2024
Eligibility:

Applicants must be:

  • Canadian companies which invest in:
    a) the production and promotion of sound recordings by Canadian artists;
    b) tours and showcases by Canadian artists;
    c) publishing of Canadian musical works; and,
    d) the management of Canadian artists.
  • eligible companies, including:
    a) record labels,
    b) music publishers, and
    c) artist managers.
  • Companies which undertake concert production activities may be eligible if they demonstrate responsibility (i.e. artistically and financially) for all aspects related to the live activities of their artists. This relationship must be enshrined in a contract between the company and their artists.
  • For 2024-2025, Canadian companies must meet the following eligibility requirements:
    a) Be a Canadian-owned and controlled company that has its headquarters based in Canada;
    b) Have completed at least three years of continuous operations as a Canadian music company;
    c) Have a business that relates to the production and marketing of Canadian sound recordings,
    domestic and international touring and showcasing of Canadian artists, Canadian artist
    management, publishing of Canadian musical works and business and skills development;
    d) Be able to demonstrate its financial viability and its history of effective use of public funding;
    e) Have minimum eligible annual gross revenues (before royalties and fees) of $250,000, not including
    public funding, in the most recent fiscal year from eligible activities related to music by Canadian
    artists- i.e. sound recordings, touring and showcasing, management and publishing - as detailed in
    the Application Form (the program’s definition of royalties and fees is found in the revenue sections
    of the Application Form);
    f) Have carried out eligible activities (production of sound recordings, marketing of sound recordings,
    tours and showcases and management) for at least two (2) Canadian artists, who are not owners of
    the company, and have released at least one (1) eligible Canadian sound recording within the
    reference period (April 1, 2021, to March 31, 2023) AND/OR for eligible publishing activities, have a
    minimum of four (4) Canadian songwriters, who are not shareholders or officers of the company,
    and have promoted at least fifteen (15) new eligible Canadian musical works within the reference
    period (April 1, 2021, to March 31, 2023);
    g) Prepare to make a minimum of $200,000 in investments in eligible activities of production and
    promotion of sound recordings, tours & showcases, publishing and management (not including
    investments in business development, administration and capital) for the period of April 1st, 2024, to
    March 31st, 202
  • Those investments should be in line with the company’s investment history;
    h) Have fulfilled all its contractual obligations with respect to artist royalty payments; In the context of
    your funding application, the contracts with artists must be provided upon request and you will have
    to fill out the artists remuneration attestation in the application form;
    i) Demonstrate a financial need to make the planned investments in the development of Canadian
    artists, the promotion of their music and the expansion of their audience. This will be assessed in
    three ways:
    i. Profit Margin: Must have reported a net profit margin including public funding and before
    interest, taxes, depreciation, and amortization (EBITDA) of less than 15% in at least one of its
    last three years. Companies that do not meet that criterion must demonstrate that a significant
    portion of those profits were or will be reinvested in the further development of their Canadian
    artists.
    ii. Revenue: Must have gross revenues (before royalties and fees and not including public
    funding) derived from its music activities, including activities of both Canadian and NonCanadian artists, of less than $20 million in at least one of its last three years.
    iii. Dividends: Companies whose total dividends and bonuses reported in their last three financial
    years exceed the CMF funding they received during that time must demonstrate their financial
    need to carry out their CMF eligible music activities. Companies that reported dividends,
    bonuses and other extraordinary compensation for company shareholders or owners in their
    most recent financial year must attest that CMF funding was not used for those payments
    (dividends, bonuses and other extraordinary compensation for company shareholders or
    owners are ineligible expenses in the Company Envelope programs).
    j) Be (and its affiliates) in good standing with the Crown as a result of agreements entered into with
    Canadian Heritage or any other government department as well as with third-party administrators
    FACTOR and Musicaction; and
    k) For Record Labels: Have the receipts from Library and Archives Canada for a “Legal deposit” for
    each eligible Canadian sound recording. Note that Company Envelope recipients will be required to
    submit receipts from the past fiscal year (April 1, 2023 – March 31, 2024) in order to receive their
    first payment.
  • FACTOR welcomes and encourages applications from people with disabilities. Please contact the
    Envelope program team to discuss options for accommodations throughout the application process, as well as our Application Accessibility Support Fund.
Application Steps:

Applicants must submit the Application Form (Excel spreadsheet) - uploaded to Component Information tab in application component.

Documentation Needed:

Applicants must submit:
1. the completed application form;
2. Business Plan (PDF) - uploaded to Component Information tab in application component.
3. Financial statements for the past 3 fiscal years (PDFs) - uploaded to Gross Revenue section of Applicant Profile.
- 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.

Other Things to Note:

Application Deadline: January 18, 2024, 5:00 p.m. Eastern Time for activities taking place from April 1, 2024 – March 31, 2025.

About the author
mmuise