New rules on equity crowdfunding in the US will allow startups to raise up to $5m a year from ‘non-accredited’ investors (i.e. the general public). Expect a wave of startups testing it out, including music firms.
Early out of the blocks is MySongbird, a streaming service for live performances and music documentaries, which is seeking $5m through a crowdfunding campaign on the website WeFunder.
The company says it will use the proceeds to expand its content library, including producing new concerts for artists. MySongbird’s pitch suggests that if it can capture 5% of the total addressable market, earning an average of $99 per customer per year, it could grow to a $2.4bn revenues company (“Disclaimer: These projections cannot be guaranteed”).
The company launched its first version in February this year, so it’s very early days, but it already has a licensing deal with UMG, and plans to launch its app for Roku and Apple TV.
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