Investing in festivals and events offers a unique opportunity to achieve financial returns in a growing industry. These events generate diversified revenues through ticket sales, bar consumption, sponsorships, and merchandising, creating multiple revenue streams. Additionally, since festivals are short-term investments (typically lasting 1 to 3 days), financial results are realised almost immediately after the event concludes. Established festivals often maintain consistent attendance, ensuring minimum revenue that makes the investment sustainable.

There are several risks inherent to this type of investment, including:

• Insufficient demand: If attendance is lower than expected, revenue could be compromised.
• Operational risk: Factors such as weather or logistical issues may negatively impact the event.
• Promoter's financial risk: If the promoter faces financial difficulties, it could delay returns.

However, these risks can be mitigated through thorough planning, adequate insurance, and the collateralisation of the production's tax credits.

The risk could be minimised through several mechanisms:

1. Advance revenue: Investment is largely covered by pre-sales of tickets and sponsorship deals. Reaching only 85% of prior years' sales figures is enough to cover the investment.
2. Tax credit collateral: The project is backed by tax credits, providing an additional layer of security, and Hulahoop acts as a mandate to ensure the repayment of capital and interest.
3. Cancellation insurance: The promoter has cancellation insurance in place to cover all advanced costs.

Returns generally range from 8% to 15% per annum. Profitability does not solely depend on the event's success but is also guaranteed by the collateral (ticket sales, sponsorships, subsidies, and monetisation of tax incentives).

Most festival investments are structured as secured loans. Investors recover their capital along with the agreed interest at the end of the stipulated term. Payments usually come from the event's revenue streams, including ticket sales, bar consumption, and sponsorships, as well as tax credits, if applicable

Key factors that contribute to a festival's financial success include:

• Location and logistics: A convenient and attractive venue is essential to maximise attendance.
• Artist lineup: Popular artists drive ticket sales.
• Marketing: An effective marketing campaign generates visibility and attracts both the public and sponsors.
• Cost control: Efficiently managing expenses without compromising event quality is crucial for maximising profitability.

The recovery period typically ranges from 6 to 12 months, depending on the event's schedule and financial structure.

Yes, as with any risky asset, there is a possibility of losing 100% of your investment. However, at Hulahoop, we implement all available tools and guarantees to minimise this risk, including insurance, sponsorship agreements, and collateralisation through tax credits.

If the event is cancelled due to unforeseen circumstances, such as logistical problems or adverse weather conditions, the investment is usually protected by insurance or pre-agreed refund arrangements. Additionally, the tax credit generated by the production can be used as collateral to ensure the recovery of the investment.

To access detailed project information, you must register on our platform. Once registered, you will have full access to all relevant documentation and will be in direct contact with our investment team, who will support you throughout the investment process.

Tax credits are an incentive designed to encourage the financing of cultural projects, allowing promoters to reduce production costs by up to 15%. This reduces the financial risk of the project and provides greater security and assurance to investors.

No, you cannot claim tax relief on your personal taxes, as this is considered a loan rather than a direct investment. Promoters are required to repay the principal and the agreed interest to investors.

However, at Hulahoop, we offer the opportunity to sign financing contracts with promoters, where your investment is repaid through tax deductions generated by cultural projects. These financing contracts are reserved exclusively for companies and self-employed individuals who owe taxes. These entities can benefit from a return of 20% on the amounts invested, as established in the Corporate Tax Law, which also applies to self-employed individuals under this regime.