US-headquartered music distribution and payments platform Stem has today (April 18) confirmed that it’s raised a $20 million new round of funding.
The investment is being led by QED Investors, a significant venture capitalist firm in the fintech space.
It’s also being supported by Block, Inc., a global techn and financial services company. QED Investors and Block, Inc. are joined by previous Stem investors Slow Ventures and Quality Control.
Stem says that the new round of investment will help fund the next phase of its growth as it launches a “range of tools to artists and labels who want to gain greater control and transparency in their finances, no matter who they choose as a distribution partner”.
Announcing the new raise, Milana Lewis, CEO of Stem, said: “It’s asinine that labels are still sending paper statements to artists a couple times each year.
“We believe that labels should have a dashboard that tells them how much they’ve invested and shows their artists and collaborators when they can expect to get paid. We’ve brought this experience to life for our clients, and now we want to give everyone the experience they deserve.”
For the past six years, Stem has distributed music on behalf of artists such as Brent Faiyaz, Melii, Wiz Khalifa, and Juicy J, as well as record labels like Big Loud.
Frank Rotman, Founding Partner at QED, said: “QED invests in companies driving the future of finance, and Stem is leading that charge in the music industry. Milana’s vision for the future of payments in the music business promises to disrupt the status quo and empower artists, labels, and creators of all sizes.
“We’re thrilled to have Stem join our portfolio of fintech innovators and to offer our years of expertise supporting the growth of fintech businesses.”
Jesse Dorogusker at Block, Inc. added: “We’ve seen firsthand the kind of creativity that small businesses are able to unlock when we remove the barriers to financial tools that let them accept payments, raise capital, and grow. We’re excited to support Stem’s mission to deliver that kind of power into the hands of artists.”
Stem’s latest raise is its first since August 2020 when it secured $10 million in financing.
Stem’s previous backers have reportedly included the likes of Scooter Braun, Mark Cuban, Vayner Capital, Upfront Ventures, Aspect Ventures, Dina LaPolt and Savan Kotecha.
In addition to distribution, Stem also offers indie artists and labels financial tools that enable Stem clients to track their revenues, access capital, manage splits with collaborators, and automate payments.Music Business Worldwide