Royalty Exchange, creators of the first online marketplace for music royalties, just announced the closing of a $6.4 million convertible note. The company more than doubled its initial intended offering of $3 million after receiving an overwhelmingly positive response from investors.
Royalty Exchange launched in 2011, fulfilling a major gap in the royalties marketplace. The company provides an online platform for musicians and private investors to buy, sell and exchange the rights to music royalties, giving both artists and investors more transparency and control over transactions.
The simple but impactful business model has resulted in a 16 percent month-over-month growth rate for the last six months, and artists have earned over $3.8 million using the platform this year alone.
“We've experienced significant growth over the last year. But we've only scratched the surface,” said Royalty Exchange CEO Matthew Smith in a statement. “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 new funds will enable Royalty Exchange to grow its team and invest in technology to expand and improve its online marketplace. The company also plans to develop new financial resources for both buyers and sellers.
In addition to the funding, Royalty Exchange added three industry heavy-hitters to its board of advisors. The new members include Jeff King, COO of SOCAN; Bill Silva of Bill Silva Entertainment; and Travis Hill, Carnival Music co-founder and songwriter for artists like Kenny Chesney, Tim McGraw and the Dixie Chicks.
“We’re honored to have Jeff, Bill, and Travis join as advisors,” Smith said in the statement. “Their involvement will add critical momentum to our efforts to democratize this space.”
Photo via Royalty Exchange.
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