In late 2017, music legend Kevin Moore (aka Keb’ Mo’) invited close friend and angel investor Ed Zimmerman to drop by a recording session where Moore and blues legend Taj Mahal were recording their first-ever joint album. When the album was nearly ready for release, Moore contacted Zimmerman to offer him the appealing opportunity to invest in the tour and promotion surrounding the release of the album. While considering the opportunity, Zimmerman thought about the potential risks in terms of investments and relationships. How should Zimmerman assess the opportunity? Which types of risks and returns are most important in making the investment decision?
Case ID: 190303