MasterExchange, a marketplace for investing in music royalties, has raised $2.7 million in funding from global investors including Vectr Fintech, Claes-Henrik Julander, and Rob Small.
The platform, launched in 2022 in Stockholm, is a marketplace where people can invest in song royalties. Its founders include AI and blockchain expert Alexander Fred-Ojala, Star Stable founder Johan Edfeldt, and producer Jakke Erixson.
For music creators, MasterExchange says it allows them to establish a deeper connection with their audience and create alternative revenue streams.
“We want to be responsibly disruptive and create added value for all current actors in the music industry. We also take compliance and transparency very seriously and are committed to protecting the interests of both the creators and the investors,” the company said on its website.
“We invested in MasterExchange because their experienced and execution-focused team has delivered the easiest user experience for artists, fans and music industry professionals. Their fiat currency-based model enables artists the best way to provide investment opportunities to their fans.”
Jason Best, Vectr Fintech
News of the investment was reported by business newswire Business Leader on Tuesday (August 1).
“We invested in MasterExchange because their experienced and execution-focused team has delivered the easiest user experience for artists, fans and music industry professionals. Their fiat currency-based model enables artists the best way to provide investment opportunities to their fans,” Jason Best, Managing Partner at Vectr Fintech, was quoted by the newswire as saying.
Best added that the industry stakeholder alignment that MasterExchange has achieved “can enable their platform to scale rapidly and efficiently. We believe that MasterExchange is capable of unlocking billions of euros of music investment value.”
Alexander Fred-Ojala, CEO and Co-Founder of MasterExchange, said their platform “allows music lovers to find unique and exciting new ways to connect with the music they love, whilst allowing the industry new, easy-to-use channels to create super-fans.”
“For the creators, MasterExchange offers the opportunity to sell a part of future revenues, giving them more possibilities to fuel artistic creation.”
Alexander Fred-Ojala, Masterexchange
“For the creators, MasterExchange offers the opportunity to sell a part of future revenues, giving them more possibilities to fuel artistic creation. MasterExchange is well-positioned to drive this change with a team that has frontier tech expertise, deep roots in the music industry, and company-building experience. I am super proud to lead this effort and this amazing group of people,” Fred-Ojala added.
The platform is available to users in the UK, the European Union and countries in the European Economic Area.
The investment round marks the latest in the song financing space. Back in May, anotherblock, a Swedish Web3 platform that lets fans invest in music by buying NFTs, raised €4 million (USD $5.1 million) in an investment round, nearly a year after it raised $2.5 million.
Music Business Worldwide