BeatBread, the pioneering music fintech business, is stepping up to support music talent by giving the bag to independent music artists.
Last year, the company founded by experienced finance and technology executives helped music creatives build leverage without sacrificing ownership and offered funding to existing music catalogs.
BeatBread uniquely allows artists to secure funding from unreleased music while advancing music projects based on their previous streams. The advances, which range from $1,000 to $2 million, are repaid from the share of an artist’s streaming and airplay revenues throughout the artist’s choosing.
Changing the way artists think about advances, BeatBread uses artificial technology to translate hard data into straightforward agreements that artists can adjust and customize to suit their individual needs. The company’s advance agreements leave touring, publishing, synch, and merchandise revenue streams “untouched.” BeatBread does not place any restrictions around how funds are used, thus leaving the choice of marketing and distribution partner in the hands of the artists.
On February 9, the company completed its first seed round, bringing the total raised for the music funding platform to more than $34 million.
In August of last year, Deciens and United Masters – a distribution/services music company – partnered with BeatBread. Recently, Symphonic Distribution, Horus Music, and Indie Amplify have also inked agreements with the company.
Since its launch in November 2020, BeatBread says that it has made more than 300 advances to artists and labels “across multiple genres, six continents, and a broad range of career stages,” according to a press release from the company.
BreatBread suggests that this model offers “high growth with high potential yield” for funders.
The firm also reassures investors on its website that its “data science team has had hundreds, sometimes tens of thousands of data points on every artist we fund.”
“We are excited to team up with Deciens and other experienced investors to continue to grow and offer more access to flexible capital to more artists,” said beatBread CEO Peter Sinclair. “This investment will allow us to expand our feature set and will extend the already large capital pool in beatBread’s invite-only Investor Network. In the legacy music industry, artists were forced to sacrifice control of their career and their masters to access growth capital. Our mission is to enable artists to access capital on their own terms.”
Ishan Sachdev, a partner at Deciens, noted, “beatBread’s next-generation, data-driven platform presents tremendous commercial opportunity because it provides fast, customizable, and transparent funding choices to artists. We look forward to partnering with Co-Founders Peter Sinclair, John Haller, and the impressive beatBread team as the company continues to accelerate and serve its rapidly expanding client list.”