Songwriter-rights marketplace Royalty Exchange has announced a $6.4m convertible-note funding round, after having originally sought $3m.
The company says that songwriters have earned more than $3.8m so far this year by auctioning parts of their royalty streams on its platform, while retaining control of their copyrights.
“We’ve experienced significant growth over the last year. But we’ve only scratched the surface,” said CEO Matthew Smith, who added that Royalty Exchange will be hiring more staff and bolstering its technology as a result of the investment. The company has also added SOCAN COO Jeff King to its advisory board, as well as songwriter Travis Hill and manager Bill Silva.
For more on Royalty Exchange’s ambitions, read our interview with Smith, which was published yesterday.
“We have more than 17,000 investors on our platform and most of them are high-net-worth individuals outside of the music business,” he told us. “They aren’t looking for something they can exploit or control. They are looking for passive interest in these assets. It’s like the artist or publisher is taking on a silent partner who basically pays them a big lump sum up front.”