NFT music marketplace Royal raises $55M in Series A round

Nov 23, 2021 | CoinTelegraph News | 0 comments

nft-music-marketplace-royal-raises-$55m-in-series-a-round

Main investors include VC giant Andreessen Horowitz, in addition to musical artists The Chainsmokers, Nas, and Disclosure.

On-chain music platform Royal has announced a Series A funding round led by venture capital giant Andreessen Horowitz.

Royal allows fans to buy music rights via nonfungible tokens (NFTs). Its co-founders, entrepreneur JD Ross and DJ Justin Blau who goes by the stage name 3LAU, announced on Nov. 23 they had closed a $55 million Series A funding, following a $16 million seed round in August.

Prominent venture capital firm Andreessen Horowitz, or a16z, led the round. Kathryn Huan, General Partner at a16z tweeted about the firm’s investment in Royal’s possibility of transforming the music industry.

Additional investment 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 backed the project as well. Royal will use the funds to scale their team and invest in the growth of artists who sign up for the platform.

CEO Justin “3LAU” Blau shared Royal’s main goal with Cointelegraph:

“Allow fans to co-own music with their favorite artists by leveraging blockchain technology to grant music rights, and aligning incentives between fans and artists. We’re starting off with a curated group of artists for our initial sales, but we plan on opening up the platform to more artists in the future.”

Last month, Blau gave away 50% of the streaming rights to his song “Worst Case” to 333 fans. Those fans get a cut of the royalties via NFTs whenever the song is streamed on Spotify, Apple Music, or another streaming service. The song reached an implied value of over $6 million with fans holding half of the value, and the tokens traded more tover $600,000 in secondary market volume in only the first two weeks, according to Blau.

Related: Celebrities are embracing NFTs in a big way

When asked how NFTs can solve the current issues within the music industry, Blau said:

“Artists’ livelihood is based on how much their fans support their music, but listeners aren’t compensated at all for that interaction. Royal leverages the NFT standards to help artists get more independence and help them capture more of the emotional value that music inherently creates.”

Royal wants to challenge the value of music ownership, which according to Blau, is “vastly misrepresented and undervalued today.” Historically, ownership of music royalties, streaming included, has been exclusively available to labels, hedge funds and private equity firms as a portfolio asset, he explained.

This could all change, however, as more and more musicians embrace the Web3 ecosystem and simultaneously empower their fanbase while funding their careers. Royal’s upcoming sale will go live within the coming weeks.

News Source from CoinTelegraph.com

Related Articles

Tanzania Central Bank Reportedly Prepares To Launch CBDC

Tanzania Central Bank Reportedly Prepares To Launch CBDC

Tanzania has reportedly started exploring a Central Bank Digital Currency (CBDC). The country is following the footsteps of Nigeria, which launched its own digital currency last month. Other African countries have similarly announced plans to launch CBDCs. Tanzania...

Hacked cloud accounts are being used to mine crypto, says Google

Hacked cloud accounts are being used to mine crypto, says Google

A report released this week by Google indicates that a majority of recently attacked accounts on its Google Cloud Platform service were used to mine cryptocurrency. The Threat Horizons report for November stated that "[m]alicious actors were observed performing...

Ethereum L2 Scene Heats Up With Boba Network Taking Second Spot in TVL

Ethereum L2 Scene Heats Up With Boba Network Taking Second Spot in TVL

Boba Network, a recently released L2 layer for Ethereum, has quickly jumped to second place in TVL (total value locked) among all expansion layers. Boba, which is a fork of Optimism, another L2 layer based on rollups, reached more than $1 billion in TVL, surpassing...

Pin It on Pinterest

Share This