Corite enables artists to estimate the value of a song they have created based on their streaming history and future projections, before announcing the amount they want to raise, and setting a percentage of streaming royalties which investors will receive in return.
Corite suggests that this system will naturally see these fan-investors become financially motivated evangelists for songs they have funded – helping to boost the success of these tracks. The platform says it will accelerate this network marketing effect via “a gamification-based set of tools that makes the collaboration between fans and artists both efficient and fun”.
What’s more, claims Corite, its system will “enable new artists to enter the music market without traditional record labels” – in addition to empowering established artists to orchestrate independent releases. In addition to being a fan-funding platform, Corite also distributes artist music to a host of platforms including Spotify, Apple Music, Deezer, YouTube and TIDAL.
“If you have ever visited a record label you have seen the gold records along the walls. They will now be shared with thousands of fans.”
Emil Angervall, Corite
The startup has some impressive credentials in its corner. Its early stage investors include Eastate, which is owned by the family behind East Capital Group; the latter is an investor in both Spotify and playlisting company X5, which sold to Warner Music Group in 2016.
Other investors include artist Danny Saucedo, artist manager Tomas Lööw and ex-Spotify exec, Sofie Grant. Tagehus, a third generation real estate and investment group, is leading the funding round and is said to have made a long-term financial commitment to Corite.
The team behind Corite is also interesting, especially when you consider the platform’s aims.
Corite has been co-founded by its CEO, Mattias Tengblad, and COO, Emil Angervall – who are both alumni of Universal Music Group.
Tengblad, with 20 years experience working in music, telecommunications and media, has held leading roles at the likes of MTG and Viaplay and, for the past year, has been the CEO of ABBA branding company Pop House Sweden (which just hired ex-UMG exec Per Sundin as its new boss).
During his tenure at Universal Music Group, Tengblad played a key role in launching both UMG’s TuneCore-rivalling distribution service, Spinnup, and the major’s flagship branded streaming playlist network, Digster.
“We are empowering a new generation of creators,” said Tengblad. “Fans can now become active stakeholders in the future success of their favourite artists.
“Backers make investments into music projects and when the artist gets streaming revenues, the fans will be rewarded for their loyalty and support through a share of the profits.”
Angervall boasts two decades of experience as a designer and creative director focusing on brand building, marketing and establishing digital ventures at Universal Music Group, MTG, TV production and digital agencies.
He is also, together with Tengblad, the co-founder of several startups including Sniph and Bright Sunday.
Angervall said: “If you have ever visited a record label you have seen the gold records along the walls. They will now be shared with thousands of fans.”
“We are empowering a new generation of creators.”
Mattias Tengblad, Corite
If you missed his point there, Corite drills it home in a press release announcing its arrival and (undisclosed) seed funding.
“Spotify wants to provide a million creative artists the opportunity to live off their art, but in a rapidly evolving industry three titans are still controlling music financing,” the PR reads.
“Fan-funding has a democratizing influence on the music market, giving artists the boost they need to build a career independently. This ties in with an overall trend where more artists are building their own teams and strong marketing through social media.”
Danny Saucedo, artist and Corite investor, commented: “Crowdfunding has been around for a while. It has however been more about signed t-shirts and exclusive meet and greets. With Corite the fan can invest directly in the music, and then celebrate the wins together with the artists they love.”
Tomas Lööw, Artist Manager and Corite investor, added: “I believe that this will truly strike a chord with your fans, making them engaged and inspired in ways to help the music thrive.”
Corite is rolling out a closed beta over the next few months. Its first collaboration is with the Denniz Pop Awards, a collection of music prizes awarded annually to new talent in Sweden.
[Pictured: Emil Angervall and Mattias Tengblad]Music Business Worldwide