US-based online royalty marketplace Royalty Exchange has announced new funding of $6.4 million, more than double the $3 million it originally set out to raise.
The platform allows songwriters, musicians and other music right owners to auction off portions of their future royalties. Rightsholders choose what type of rights they wish to sell (eg performing rights income from their songs), what percentage of their future royalties are up for grabs, and how long the royalties transfer will last for. The winning bidder is then added as a beneficiary of the copyright through the rightsholder’s collecting society.
The rightsholders receive a lump sum from the transaction while still earning on the percentage of their royalties that they do not sell. And if they are working creators, the rights in future works are not affected. Royalty Exchange makes money by taking a fee from successful auctions. According to the company, over $3.8 million has been raised by rightsholders through these auctions this year.
“We’ve experienced significant growth over the last year, but we’ve only scratched the surface”, says Royalty Exchange CEO Matthew Smith. “Imagine if you had only two options to grow your business – either sell out completely or grow from internal cash flows only. That’s the choice many artists face today. Royalty Exchange adds a whole new option for rightsholders, and we do it by bringing competition and transparency”.
The company says that the new investment will be used to further develop its technology, and to hire staff in business development, marketing and artist/label relations roles.
Royalty Exchange’s Antony Bruno is among those due to speak at the next Music 4.5 event in London, which is called ‘The Value Of Music – Exploring Music As An Asset’. It takes place on 6 Jul and – as usual – look out for a ‘story so far’ CMU Trends article informing the debate, plus CMU’s Chris Cooke will moderate one of the discussion sessions. Info here.[from http://ift.tt/2lvivLP]