We know startup BeatBread for its technology that automates the process of paying advances to artists based on their projected streaming revenues. It raised $34m of funding in February and has been working with distributors including UnitedMasters and Symphonic Distribution. Now it’s exploring another way to provide artists with funding: external investors.
It’s putting together a network that includes music companies and execs from the industry, distributors and ‘high net worth individuals’. Artists who’ve already been approved for an BeatBread advance will also be able to promote “tour dates, collaborators, marketing partners and other initiatives” to this investors network, who will then be able to use that information to bid on providing advances to those artists, on terms perhaps better than BeatBread’s algorithm provides.
So, a human element to complement BeatBread’s systems. “We use algorithms to make investment decisions, but we know that some investors may prefer to utilise experience, taste and other subjective factors. Both approaches have their place,” said CEO Peter Sinclair.
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