On-chain music platform Royal announced a round of financing led by venture capital giant Andreessen Horowitz.
Royal allows fans to purchase music rights through non-fungible tokens (NFT). Its co-founder and entrepreneur JD Ross and DJ Justin Blau of the stage name 3LAU, Announce After raising a seed round of USD 16 million in August, they completed a USD 55 million A round of financing on November 23.
The well-known venture capital firm Andreessen Horowitz or a16z led this round of financing. Kathryn Huan, general partner of a16z, spoke on Twitter about the company’s investment in Royal’s possibility of transforming the music industry.
1/ Today we announced our investment in @join_royal, I think a web3 platform is expected to change the music industry in a way that has not been possible until now. DJ @3LAU with @开门 Co-founder @justindross It’s a perfect pair.
-Katherine Haun (@katie_haun) November 22, 2021
Additional investments came from CAA and NEA’s Connect Ventures, Crush Music, Coinbase Ventures, Founders Fund and Paradigm. Celebrities and global artists such as The Chainsmokers, Nas, Logic, Kygo, Stefflon Don, Joyner Lucas and Disclosure also support the project. Royal will use the funds to expand their team and invest in the growth of artists registered on the platform.
CEO Justin “3LAU” Blau shared with Cointelegraph the main goals of Royal:
“By using blockchain technology to grant music rights, and adjusting incentives between fans and artists, allowing fans to co-own music with their favorite artists. We selected a group of artists from the initial sales, but we plan to We will open this platform to more artists in the future.”
Last month, Blau gave 50% of the streaming rights to his song “Worst Case” to 333 fans. Whenever a song is played on Spotify, Apple Music or other streaming services, these fans will receive royalties through NFT.This song arrive According to Blau, the implied value is more than 6 million U.S. dollars, and fans hold half of the value. In the first two weeks, the secondary market transaction volume of these tokens exceeded 600,000 U.S. dollars.
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When asked how NFT solves the current problems in the music industry, Blau said:
“The livelihood of artists depends on how much their fans support their music, but listeners will not be compensated for this interaction. Royal uses the NFT standard to help artists gain more independence and help them capture more music Inherent emotional value.”
Royal wants to challenge the value of music ownership, which, according to Blau, is “severely distorted and underestimated today”. He explained that historically, ownership of music royalties, including streaming media, has been exclusively provided to record companies, hedge funds, and private equity companies as portfolio assets.
However, as more and more musicians embrace the Web3 ecosystem and increase their fan base while funding their careers, all this may change. Royal’s upcoming auction will go live in the next few weeks.