Music funding platform beatBread raises $34 million

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The independent artist sector is growing rapidly and an increasing number of companies are offering artists access to capital in the form of advances.

One such company is music funding platform beatBread, which just completed a $34 million seed round led by Fintech-focused venture capital firm Deciens Capital.

Deciens Capital was joined by existing and new investors including Afore Capital, Angel Ventures, IAG Capital Partners, Mucker Capital, Pandeavor Ventures, Jason Guss, CEO of Octane Lending, Pier Capital and Westrie Capital.

We wrote about beatBread in August last year, when UnitedMasters partnered with the Utah-based company to offer qualified artists advances ranging from $1,000 to $1 million.

BeatBread says its ChordCash technology engine evaluates artists’ streaming and social data to generate advance offers that, when combined with a “streamlined” verification and documentation process, lead to advance funding to artists’ bank accounts. artists in a few days.

UnitedMasters isn’t the only music distribution/services company to partner with beatBread: Symphonic Distribution, Horus Music and Indie Amplify also recently signed deals with the company.

Since launching in November 2020, beatBread says it has made more than 300 advances to artists and labels “across multiple genres, six continents and a wide range of career stages”.

BeatBread offers advances ranging from $1,000 to $2 million per artist.

As reported last August, beatBread is getting the money to advance artists’ money to investors looking for returns, with the company’s website encouraging accredited investors to invest in artists.

BeatBread suggests that this model offers “high growth with high potential return” for backers.

The company also reassures investors on its website that its “data science team has hundreds, sometimes tens of thousands of data points on every artist we fund.”

He adds that “more powerfully, each artist is compared to a model that includes billions and billions of additional data points on hundreds of thousands of other artists.”

According to the company, “artists receive funding in return for a limited share of existing catalog revenue, with options also available for advances on unreleased music.”

BeatBread says advances are repaid from a share of an artist’s streaming and broadcast revenue, over a period chosen by the artist.

According to beatBread, the pre-agreements leave revenue streams from touring, publishing, syncing, and merchandise “untouched.”

“Our mission is to enable artists to access capital on their own terms.”

Peter Sinclair, beatBread

BeatBread CEO Peter Sinclair said, “We are delighted to team up with Deciens and other experienced investors to continue to grow and provide greater access to flexible capital for more artists.

“This investment will allow us to expand our feature set and expand the already large capital pool of beatBread’s network of invited investors. In the legacy music industry, artists were forced to sacrifice control of their careers and their masters to access growth capital.

“Our mission is to enable artists to access capital on their own terms.”

“beatBread’s next-generation, data-driven platform offers a tremendous business opportunity as it provides artists with fast, customizable and transparent funding choices.”

Ishan Satchdev, Deciens

Ishan Sachdev, Partner at Deciens, added: “BeatBread’s next-generation, data-driven platform presents a tremendous business opportunity as it provides artists with fast, customizable and transparent funding choices.

“We look forward to partnering with co-founders Peter Sinclair, John Haller and the impressive team at beatBread as the company continues to accelerate and serve its growing customer list.”The music industry around the world

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