Online music royalty marketplace Royalty Exchange has raised $6.4m to help expand its staff and technology.
The platform allows users to buy and sell royalties for music, with investors and creators able to set up auctions for the music.
Over the past six months the company has had an average monthly growth rate of 16 per cent and so far this year music creators have earned around $3.8m using the platform, according to the company.
The company, which initially set out to raise $3m, will use the capital to hire more staff for business development, marketing, and artist/label relations.
Also with the funds, Royalty Exchange hopes to build new financial solutions for buyers and sellers.
Royalty Exchange CEO Matthew Smith said, “We’ve experienced significant growth over the last year. But we’ve only scratched the surface.
“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.”
This investment follows a $550,000 injection of capital from IDEA Fund Partners in 2014, and brings total funding into Royalty Exchange to around $9.8m.
Following the deal, the company has appointed SOCAN COO Jeff King, Bill Silva Management founder Bill Silva and Carnival Music co-founder Travis Hill to its board of advisors.
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