Amplify will be the next platform for fans to invest in artists


There are already a number of companies making it possible for fans and high-wealth individuals to invest in musicians, from the familiar crowdfunding platforms like Patreon to the likes of Royalty Exchange. The latest startup falling into the latter category is Amplify, which is planning to launch a private beta of its service this summer.

“Amplify creates an entirely new asset class where people can invest in artists and share in their future success,” claims its website. Its idea is for “initial artist offerings” (IAOs) where artists launch campaigns to sell shares to fans, who in return will receive a share of the artist’s royalties. “Artists keep 4-5X what they do with a typical label deal,” claims the site (albeit without any more figures to back up that statement). The model is at least familiar from existing companies in this space: the challenge (as with all of these companies) will be in enlisting artists prominent enough to create headlines and draw fans to the platform.

Written by: Stuart Dredge