NFT
The advent of tokenized music assets and NFTs has allowed investors to acquire rights to their favorite music, a feat that was nearly impossible just a few years ago.
This use case has recently increased investor interest in Web3 and blockchain technology.
In a new development, Web3 marketplace AnotherBlock has secured another round of VC funding following the successful sale of Rihanna’s music rights to the platform.
The Sweden-based company raised €4 million in a funding round led by UK-based venture capitalist, Stride VC.
AnotherBlock raises $4.35 million in seed funding
AnotherBlock is a Web3 music marketplace founded in 2022 by Michel D. Traore, Sebastian Ljungberg and Flip Strömsten.
The company has recently seen a wave of success following a boost in music NFT sales. The music rights marketplace uses NFTs and tokens to generate property-related royalties.
Artists receive royalties when users purchase their music NFTs.
Recently, a co-producer on Rihanna’s “Bitch Better Have My Money” album, Jamil “Deputy” Pierre, reportedly bagged $63,000 after selling his royalties for the song as NFT on AnotherBlocvk.
That was after Rihanna’s extraordinary performance of the song during halftime of Super Bowl LVII went viral.
This NFT sale raised AnotherBlock’s notoriety and attracted the attention of venture capitalists who raised new funds for the start-up company.
Among the fundraiser participants was Swedish House Mafia artist Axwell.
Before the €4 million ($4.35 million) funding, AnotherBlock had raised a $1.2 million pre-seed round from angel investors and venture capital firm J12.
It is worth noting that AnotherBlock’s NFT ownership agreement allows for secondary sales.
However, the rights owner must pay NFT holders a percentage of all streaming royalties earned at least twice a year.
Tokenized music rights are revolutionizing the music industry
Music NFT Sales has announced that the Web3 spaces are in the spotlight.
According to a partner at Stride VC, Gabbi Cahane, this proposal could spark an explosive shift for an industry that protected IP ownership.
In a statement, Axwell, who participated in the VC funding, stated that AnotherBlock’s work aligns with their vision.”
He further stated that the future of the company would allow for more flexibility in rights by allowing creators to share financial incentives with their fans.
Notably, AnotherBlock isn’t the first or only Web3 music NFT marketplace to secure VC funding after a boost in sales. Royal, an NFT-based music platform, did too.
Royal allows fans to buy and sell tokenized song ownership. It also sells tokens as a percentage of the music’s streaming rights, allowing fans to earn royalties along with artists.
had royal Raised $71 million from Series A funding rounds from several investors, including a Web3-focused venture capital fund, a16z Crypto.