Envelope Funding for Music Companies

Envelope Funding for Music Companies 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. This can include expenses related to the production and marketing of sound recordings, domestic and international tours and showcases, music publishing, artist management and business development activities.

Components in this program

There are no components outside of the main Envelope Funding in this program.

Who is Eligible

For the 2021-2022 fiscal year, Envelope Funding will be available to Canadian music companies that meet the eligibility criteria detailed in the Program Guidelines. Companies will provide information to verify eligibility in their FACTOR Applicant Profile.

Companies that are interested in this program and are new to the FACTOR system are invited to create an Applicant Profile prior to the program deadline. Please contact FACTOR to discuss.

If the majority of the company’s investments relate to French-language artists, applicants should submit their application to Musicaction. Applicants representing both French-and English-language artists whose proportion of production/marketing of French-language musical content is less than 50% can still submit their application to Musicaction if they typically submitted their application to them in the past.

Deadlines

Application materials must be uploaded to the Applicant Profile in the FACTOR portal by January 28, 2021, 5:00 p.m. Eastern Time.

Funding & Payments

The maximum funding level for individual companies is $650,000; affiliated companies are capped at $800,000. In response to challenges created by the COVID-19 pandemic, the percentage of FACTOR’s contribution is 75% of total eligible expenses. This adjustment will apply to the entirety of the 2021-2022 fiscal year.

Assessment Process

For full details on how applications are assessed make sure you read the program guidelines.

Contributions to Canadian music companies will be determined on two main criteria:

  • The companies’ ability to reach audiences (assessed based on the applicant’s recent revenues and recent investments); and,
  • The companies’ efforts to develop the careers of Canadian artists, to promote and develop audiences (based on an assessment of the business plan, including planned investments).

As Envelope Funding provides financial support for companies’ investment plans in their Canadian artists in the upcoming fiscal year, the bulk of the budget is allocated via assessments of those plans. The budget is divided across the three assessment steps: 20% on revenue, 20% on recent investments and 60% for planned investments.

Note for 2021-2022

COVID-19 continues to present much uncertainty for the Canadian music industry. This may prove challenging for applicants to accurately plan their activities for 2021-2022. Accordingly, the assessment will be calculated as follows: 40% on revenues, 20% on recent investments and 40% on planned investments. This is a COVID-19 related measure, and the budget allocation could revert to 60% for planned investments in the following year.