Stem, which is helping musicians improve their financial stability with new tools, has closed a fresh $20m funding round.
The capital injection was backed by QED Investors and Block, which was formerly Square. Existing Stem investors Slow Ventures and Quality Control also joined the round. As part of the investment, QED Investors partner Frank Rotman has joined the Stem board.
With the funds, the company hopes to build a payments platform that is clear and fair for everyone.
Stem was created on the idea that the music industry has wrongly relied on legacy tools that no longer work. Artists work for different partners for different releases, they earn income from new platforms and they need money to invest into producing and marketing their work, it said.
With the changes to the industry, Stem believes that labels need the same innovations and financial tools that support small business growth.
Its platform claims to offer clarity for music businesses, which boasts a simple dashboard for instant visibility into their earnings. Alongside this, it has tools that help divide royalty income in a fair and transparent manner.
In the future the company plans to release products that support the whole music industry.
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