US-based online music rights marketplace Royalty Exchange has closed a $6.4 million convertible note to fund its growth.
The company enables artists and rights-holders to raise money by selling separate assets – including mechanical, performing and sync rights – via online auctions.
Artists and songwriters keep full control of their copyrights and continue to earn royalties on what they don’t sell.
So far this year, music creators have earned over $3.8 million using the platform.
Earlier this month, a collection of song rights associated with Sesame Street – including Elmo’s Song – fetched a $580,000 price via the platform.
In addition to its new financial raise, Royalty Exchange has added three high-profile additions to its board of advisors:
- Jeff King, COO, SOCAN
- Bill Silva, Bill Silva Presents and Bill Silva Management
- Travis Hill, Carnival Music co-founder and songwriter (Kenny Chesney, Tim McGraw, Dixie Chicks)
“We’ve experienced significant growth over the last year. But we’ve only scratched the surface,” said Royalty Exchange CEO Matthew Smith.
“Imagine if you had only two options to grow your business… either sell out completely or grow from internal cash flows only. That’s the choice many artists face today.
“Royalty Exchange adds a whole new option for rightsholders, and we do it by bringing competition and transparency.”
The company initially sought a $3m raise but ended up topping $6m due to ‘overwhelming demand’.
The funds will go towards hiring additional employees and investing in new technology.
Royalty Exchange is currently staffing up in business development, marketing, and artist/label relations roles.
“We’re honored to have Jeff, Bill, and Travis join as advisors,” added Royalty Exchange CEO Matthew Smith.
“Their involvement will add critical momentum to our efforts to democratize this space.”Music Business Worldwide