It’s every musician’s right to sell their copyrights, if they have retained them. But might they prefer to hang on to these rights if there were another way to leverage them to raise money? That’s something that British startup Music Credit Fund is planning to explore.
Unveiled this morning, complete with industry veterans Alison Wenham (formerly Aim / Win) and Tim Clark (ie:music) on its advisory board, it will be offering artists and songwriters loans secured against their intellectual property and future income streams – but not actually buying it out.
“With a $2m minimum borrowing threshold, MCF will allow any holder of music rights the opportunity to realise value via a lump sum loan whilst retaining control, via 5-10 year loans at competitive interest rates with no personal guarantees,” as the company put it. The aim is to offer an alternative to full catalogue buyouts.
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