In Brief:
- NFT music platform Royal raises $55M in a Series A funding round.
- Andressen Horowitz(a16z) led the funding round along with other investors.
- Royal intends to expand their ecosystem with the raised funds.
The leading NFT music platform, Royal, announced the raise of $55M in a Series A funding round led by Andressen Horowitz(a16z).
The Chainsmokers, Nas, Logic & Kygo are among the musicians who chose to back the project along with a16z crypto.
The round was also attended by CAA and NEA’s Connect Ventures, Crush Music, Coinbase Ventures, Founders Fund, and Paradigm.
The Chainsmokers duo added, “We believe blockchain technology has the ability to transform music ownership the same way the internet has transformed the way music is listened to.”
Founded by Justin Blau, popularly known as DJ 3lau, Royal not only assists artists in creating and selling NFTs but also allows fans to invest in an artist’s work and receive royalties in return.
The platform’s way of eliminating middlemen and using blockchain technology to raise money directly from fans could make the music royalty process less volatile.
3Lau tested the idea by dropping 333 NFTs that represented 50% of streaming ownership in his new single “Worst Case.”
The song ended up with an implied value of more than $6 million, with fans holding half of the value, and the tokens have traded for more than $650k in the secondary market.
Lau added, “The company is growing at a rapid pace beyond expectations, reaching over 120,000 sign-ups since announcing at the end of August. We couldn’t be more excited to welcome a roster of innovative artists that believe in our mission.”
The musicians can motivate their fanbase while also funding their careers through Royal. Simultaneously, fans gain access to opportunities that were exclusively available to major labels, hedge funds, etc.
3Lau stated that the platform intends to open its platform to many more artists and that fans will be able to invest in 1,000 songs by next year.
The newly raised funds will be used by Royal to expand their ecosystem and invest in the growth of artists who sign up for the platform.
Kathryn Haun, General Partner at Andreessen Horowitz, added “3LAU’s firsthand experience as a successful artist paired with JD’s exceptional track record as a repeat founder and startup operator makes them the ideal pair to tackle the complex undertaking of applying blockchain technology to music rights and ownership.”
Royal’s live sale will be announced in the coming weeks, and the whole NFT community is more than excited about the news.
VC firm a16z has been actively investing and offering funds to various NFT and crypto platforms and backing their growth in this industry. Last week they also invested in Forte, a blockchain gaming startup, to help expand its products and services.
a16z is heavily involved in the cryptocurrency industry and tries to bring in regulatory policies in favor of the people involved in crypto. Last month a few a16z executives headed to Washington,D.C. to explain to lawmakers and experts in the White House why the next generation of the internet should be regulated by them.
