Stockholm-based song investment platform MasterExchange has announced a $2.74 million funding round. Here’s the latest.
The platform raised its latest funding from investors, including Vectr Fintech, Claes-Henrik Julander, and Rob Small. MasterExchange allows anyone to invest fiat currency in specific songs to receive a quarterly share of the music royalty payments. The platform also serves as an exchange to allow anyone to trade their shares of music royalties with other investors.
MasterExchange was founded in Stockholm in 2022 by Alexander Fred-Ojala, Johan Edfeldt, and Jakke Erixson. The service is currently only available to customers in the UK, EU, and EEA countries. So how does MasterExchange work? Here’s a quick breakdown.
A song is made available on the MasterExchange platform for investment through an initial music offering (IMO). IMOs are launched by master royalty beneficiaries (artists, music labels, producers), allowing users to purchase shares of song royalties that entitle them to a share of income generated from the song’s use. Streaming services, sync placement, and more create revenues that are shown to investors through a transparent process. The first song to be made available for investing is “Sofia” by Alvaro Soler, with investment closing on August 15.
“This innovation allows music lovers to find unique and exciting new ways to connect with the music they love whilst allowing the industry new, easy-to-use channels to create super-fans,” adds Alexander Fred-Ojala, CEO & Co-Founder of MasterExchange. “For the creators, MasterExchange offers the opportunity to sell a part of future revenues, giving them more possibilities to fuel artistic creation. MasterExchange is well-positioned to drive this change with a team that has frontier tech expertise, deep roots in the music industry, and company-building expertise. I am super proud to lead this effort and this amazing group of people!”
“We invested in MasterExchange because their experienced and execution-focused team has delivered the easiest user experience for artists, fans, and music industry professionals,” adds Jason Best, Managing Partner at Vectr Fintech. “Their fiat currency-based model enables artists the best way to provide investment opportunities to their fans. The industry stakeholder alignment they have achieved can enable their platform to scale rapidly and efficiently. We believe that MasterExchange is capable of unlocking billions of euros of music investment value.”