We reported last week on virtual-reality music startup MelodyVR’s postponement of its planned expansion to Latin America and Asia Pacific, due to the coronavirus pandemic. However, the company’s growth hopes continue: this morning the company – which is public – announced plans to raise $12m of new funding by selling shares to existing and new investors. After expenses, it’ll mean a cash injection of up to $11.52m used “to extend reach and user engagement and to further enhance MelodyVR both in terms of content and functionality…
The net proceeds will also be used to hire new personnel, provide funds for warehousing costs, assist with the development of the MelodyVR platform and subscription offering, fund ongoing operating expenses and provide general working capital for the company.”
MelodyVR’s challenge remains extending its ‘runway’ while the sale of VR headsets continues to grow slower than had been expected. In January, MelodyVR’s last share-option exercise valued the company at around $288m.
Music Ally’s next Learn Live webinar will help you understand what’s required for artists to thrive in new international markets!