Los Angeles-based Explorer1 Music Group (EX1) has acquired SEC-registered crowdfunding platform Music Benefactors.
EX1 plans to relaunch Music Benefactors as a new technology and marketing platform.
Music Benefactors was founded by President, Matt Lutz, who was a Managing Partner for more than five years at Allegheny Exchange, an online marketplace for alternative investments, and for 11 years at Tarpon Bay Co.
The latter company, which he also established, focused on providing permanent financing for single-family rental properties, and providing capital to municipalities and school districts in the Greater Pittsburgh Area, according to his LinkedIn page.
Lutz told media outlet V13 in an interview last year said the goal of Music Benefactors is “to turn regular music fans into music investors”.
“The music industry is dominated by the major labels… We want the artists to maintain ownership of their master recordings and copyrights.”
Matt Lutz, Music Benefactors
Music Benefactors is a platform for investing in artists’ careers, tours, albums, or new projects. This way, fans can become a part owner of the assets and content that artists create.
“By participating in this asset class music fans can change the music industry. The music industry is dominated by the major labels… We want the artists to maintain ownership of their master recordings and copyrights. Fans and investors provide the capital needed to make and market music,” Lutz told V13.
The company is currently running crowdsourcing for all-female violin rock band The Violution, and country performer, Karen Waldrup, whose latest album, Kendall County Road, was released on September 9.
By backing performers on the platform, investors receive a share of the royalties every time the artists’ music is played and a portion of income and profits from artists’ tours and albums.
Speaking about the acquisition, Lutz said: “I am so proud that EX1 recognized the value in this business and platform I spent years developing… Their visionary approach to vetting and marketing each of the offerings I believe is a breathe of fresh air in the crowdfunding space, and will give Music Benefactors the edge when it comes to delivering financial success for artists and musical projects.”
EX1 says that partnering with Music Benefactors will allow it to add a crowdfunding platform to its portfolio of businesses and create a new pipeline of potential artists for its Grammy-nominated record label EX1 Records.
The label is behind acts such as American rock band Mammoth WVH, fronted by Wolfgang Van Halen, the son of famed guitarist Eddie Van Halen; KK’s Priest, British Lion, The Raven Age, Voodoo Six and English singer-songwriter Matt Goss.
“With Music Benefactors, we can now provide them a platform to raise the funds they need to take their career to the next level, while opening the door to a deeper relationship that may see them work with EX1 in the future.”
Paul Woolnough, Explorer1 Music Group
EX1 founder and CEO Paul Woolnough, added: “Since launching EX1’s artist partnership model in 2019, we are constantly approached by amazingly talented songwriters, performers and artists that we would like to support, but are not fiscally or creatively a fit for our full partnership model,” said Paul Woolnough, founder and CEO of the Explorer1 Music Group.
“With Music Benefactors, we can now provide them a platform to raise the funds they need to take their career to the next level, while opening the door to a deeper relationship that may see them work with EX1 in the future.”Music Business Worldwide